Drug discovery company Genaissance Pharmaceuticals is to acquire bankrupt applied genetics company DNA Sciences for $1.3 million (€1.2 m) in cash.
Under terms of the agreement, Genaissance would gain all of DNA Sciences' assets, subject to bankruptcy court proceedings, approval and customary closing conditions, which the two parties expect to occur within 60 days.
"This proposed transaction would further our goal of building a comprehensive business in drug response pharmacogenomics while maintaining our internal financial benchmarks," said Kevin Rakin, president and CEO of Genaissance Pharmaceuticals.
Rakin claims that after the transaction with DNA Sciences is completed Genaissance will have greater revenue, 'a larger client base, additional genotyping services, a broadened intellectual property estate and an enhanced ability to develop proprietary products'.
"By joining forces with Genaissance, our employees, customers and technology partners would benefit from a company that has significant market share in the area of pharmacogenomics," said Steven Lehrer, president and chief operating officer of DNA Sciences.
Genaissance hopes that this latest acquisition will contribute to the company's overall goal of reaching financial break-even in 2005.