Gene Logic Announces Formation and Financing of Spin-off Company: MetriGenix, Inc.
-- New Company to Commercialize Gene Logic's Patented Flow-thru Chip(TM) Technology --
GAITHERSBURG, Md.--(BW HealthWire)--July 19, 2001-- Gene Logic Inc. (Nasdaq: GLGC - news), an integrated biological information and bioinformatics company, announced today that it has completed a spin-off of its patented Flow-thru Chip(TM) technology into a new company, MetriGenix, Inc., and that MetriGenix has secured $15 million in initial financing to further develop and commercialize the Flow-thru Chip(TM).
MetriGenix will market and sell the Flow-thru Chip(TM) technology and its associated instrumentation and software as a multigene screening tool to selected pharmaceutical, biotechnology and other life science partners. The product line will include both custom and branded arrays.
Gene Logic's contribution to the new venture consists mainly of relevant intellectual property and know-how associated with the Flow-thru Chip(TM) technology. Initial financing is being provided by a group of investment partners consisting of Oxford Bioscience Partners, Burrill Biotechnology Capital Fund, L.P., Infineon Ventures GmbH and GE Equity. Following this financing, Gene Logic initially owns 54% of the equity of the new company. Further details with respect to the terms of initial financing were not disclosed.
Gene Logic's results of operations have historically reflected expenses associated with its investment in the ongoing development of the Flow-thru Chip(TM) technology. As a result of the spin-off, Gene Logic expects that beginning with the fourth quarter of 2001, its results will cease to show any further expenses associated with MetriGenix. Gene Logic does not expect this transaction to affect its previously reported guidance for 2001.
Andrew O'Beirne, Dr.P.H., Senior Vice President, New Ventures for Gene Logic will become MetriGenix's President and Chief Executive Officer. O'Beirne commented, ``We are confident the Flow-thru Chip(TM) technology has significant commercial and scientific value. MetriGenix will be singularly focused on commercializing the Chip as a highly sensitive, high-throughput and cost-effective approach for simultaneously screening compounds against numerous targets.''
The Flow-thru Chip(TM) technology is a biomolecular analysis platform with performance advantages over traditional substrates for biological sensing applications in which molecular interactions occur within three-dimensional microchannels rather than on the two-dimensional flat surface platforms currently available. The Chip is comprised of microchannels that connect the upper and lower faces of the chip in such a manner that fluid can flow through the chip. Biomolecular capture probes are deposited into one or more discrete microchannels of the chip to create a microarray that is used to carry out multiple determinations in parallel. The microscopic diameter of each microchannel results in a much larger surface area-to-volume ratio than is attainable with flat surface platforms.
Specific advantages in developing biosensors on microchannel chips may include: improved responsiveness and dynamic range due to increased surface area; reduced assay times due to enhanced mass-transport within the channels; more uniform probe deposition and higher array densities due to wetting properties of the microporous chip; and, smaller sample and reagent volume requirements due to reduction in the reaction volume.
Gene Logic developed prototype instrumentation for optimal performance of the flow-thru platform. Gene Logic then demonstrated the viability of the technology for both genomic and proteomics applications, including the development of a pilot drug-screening and an immunodiagnostic assay. The Flow-thru Chip(TM) technology will be provided in either a single cartridge form or, for high-volume screening, in a 96-well format.
Mark D. Gessler, Gene Logic's Chairman and Chief Executive Officer, commented, ``We are pleased to be able to capitalize on our previous investments in the Flow-thru Chip(TM) technology. MetriGenix will be able to focus the necessary resources on the further development and commercialization of this proprietary, patented technology.'' |
