Paraphrase: 'When you are located in France, the only thing harder than turning a cash-poor genomics company into a drug discovery powerhouse is firing every one you have to to do it. And, the oligo business is more useful as a lump sum than as a cash-positive business we have to manage. Oh, and one hell of a lot rides on the skinny mice!!'
Anyone want to bet they change the name to Genset Pharma in 6 months? (I am pulling for them, actually. Have to.)
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PARIS, Feb. 12 /PRNewswire/ --
Genset (Nasdaq: GENXY; Nouveau Marche: GENSET) announced today the launch of the operational phase of its "Genset Pharma" initiative announced last August: the generation of a pipeline of validated targets and drug candidates in the
fields of metabolic and central nervous system disorders.
The completion of the sequencing of the human genome accelerated the transition of the genomics industry to a greater focus on medical genomics. As a key player in this transition, Genset is reorienting its genomics activities towards the discovery and development of pharmaceutical products.
The first results of this strategic reorientation are promising, as demonstrated by the recently published pre-clinical results concerning Famoxin, the company's lead protein for the treatment of obesity.
Andre Pernet, president and chief executive officer of Genset, commented: "As we indicated last August, our objective is not to offer services for the discovery of genes associated with various diseases, but to identify drug
candidates. This is the direction we want to commit ourselves to 100%."
The completion of the Genset Pharma initiative will require a reorganization of Genset's Genomics Research Center outside Paris. In particular, the transition contemplates the reduction of 82 jobs. At the same time, our increased pharmaceutical genomics activities requires the strengthening of certain qualifications, which will result in the creation of 28 new jobs.
Consistent with French labor law, we have initiated an information and consultation procedure with our workers' representatives to review the project in detail. In this respect, Andre Pernet highlighted, "management is committed, in collaboration with the Workers' Committee, to ensure each person finds a stimulating and satisfying position, either elsewhere in the company, in its close environment or within another enterprise."
This transition also contemplates the sale of the Genset Oligos division. This profitable division, encompassing one of the first activities of the company, benefits from a strong worldwide presence, in Europe, North America and Asia. Genset Oligos is a world leader in the production of synthetic DNA, or oligonucleotides, and has been growing rapidly especially over the last three years. As time has progressed, however, this activity has become less strategic to Genset's core business. To optimize its future growth, this business would benefit most from a management dedicated to and focused on the commercial nature of its activity. The company is therefore actively
exploring the sale of the oligonucleotides business.
As part of its strategic reorientation, Genset also intends o end its gene discovery research programs undertaken for the account of pharmaceutical company partners. Almost all of these programs are either completed or will be in the coming months.
"Today's announcements demonstrate that we are moving rapidly in the direction announced last summer," explained Andre Pernet. "We are putting into effect our initiative to transform Genset into a pharmaceutical genomics company, giving ourselves the means to open the way to a medical revolution."
About Genset
Genset is a genomics company committed to generating a pipeline of drug candidates for the treatment of central nervous system and metabolic disorders. Genset's integrated technology platform combined with ongoing genomic association studies will continue to identify and characterize potential drug targets and drug response markers for these disorders. By relying upon the expertise accumulated through various alliances with pharmaceutical partners and its portfolio of genomic patents, Genset now
intends to discover and validate novel drug targets and candidate drugs for its own account. News releases by Genset are available on the company's web site at genxy.com. |
