Clinical Data To Buy Genaissance Pharmaceuticals; Combined Co To Deliver Industry-Defining Theranostics
DOW JONES NEWSWIRES
June 21, 2005 7:48 a.m.
NEWTON, Mass. (Dow Jones)--Clinical Data Inc. (CLDA) agreed to acquire Genaissance Pharmaceuticals Inc. (GNSC) for about $56 million in stock.
In a press release Tuesday, Clinical Data, which provides medical-laboratory products and services, said Genaissance holders will get 0.065 share of Clinical Data for each share of Genaissance, which makes DNA-based diagnostic products.
That values each Genaissance share at $1.33, or 25% higher than the stock's closing price Monday of $1.06.
The companies expect the deal to close in the fourth quarter.
Clinical Data said its acquisition of Genaissance will allow the company to enter the molecular diagnostics market.
After the deal closes, Genaissance directors Kevin Rakin and Joseph Klein will be added to the board of the newly formed company. E.L. Amidon, an outside director, will also be added, bringing the total number of directors to seven from four.
A company spokesman wasn't immediately available.
Through the nine-month period ended Dec. 31, Clinical Data reported net income of $3.2 million, or 71 cents a share, on revenue of $43.7 million.
In 2004, Genaissance reported a net loss of $21.4 million, or 78 cents a share, on revenue of $20.9 million.
WR Hambrecht + Co. provided a fairness opinion to the Clinical Data board. CIBC World Markets Corp. advised Genaissance.
Company Web site: clda.com |
