Sequenom Inc, San Diego, recently announced plans to divest its North Carolina operations and reduce its workforce by 20%.
The company maintains a clinical genomic laboratory in Research Triangle Park, NC, for processing noninvasive prenatal tests and other reproductive health tests. Operations currently conducted in North Carolina will be consolidated in San Diego throughout the first half of 2016.
Dirk van den Boom, Sequenom.
“Our employees have always displayed a remarkable passion for innovation and a strong commitment to delivering the highest quality products in support of women’s health,” says Dirk van den Boom, president and CEO of Sequenom. “In making the difficult decision to sell our North Carolina facility, we are working hard to find a buyer that may be able to employ some or all of our team, thereby minimizing the effect on our employees and their families.”
Sequenom also announced plans to reduce its workforce by approximately 20%, or 110 positions, out of a total of approximately 500 filled and authorized positions.
According to a statement from the company, its actions are designed to sharpen the company’s focus on its core women’s health business, reduce its operating costs, and optimize its organizational structure and processes.
The company also announced it is seeking strategic partners for the commercialization of its oncology liquid biopsy assay, with a concomitant reduction in research and development spending in this area. The company plans to focus its research and development efforts on broadening its portfolio with tests serving obstetricians, gynecologists, and maternal-fetal medicine specialists, and expand its presence in the obstetrics and gynecology sales channel. “In making these changes, we are committed to unlocking the value that already exists in the business,” says van den Boom.
As a result of the restructuring program, Sequenom has increased its previously announced expected cost savings of more than $10 million annually to an annualized cost savings anticipated to exceed $20 million in late 2016, once all reductions are fully implemented. Reductions are planned in both the cost of revenues and in operating expenses, primarily in research and development and general and administrative functions.
In parallel with its efficiency initiatives and cost reductions, Sequenom announced the goal of attaining a neutral operating cash flow run rate before the end of 2017.
Sequenom will focus on its portfolio of products for noninvasive prenatal applications, such as the MaterniT Genome laboratory-developed test.
“We believe these changes will position Sequenom to achieve higher levels of near-term performance while still allowing us to pursue our longer term potential,” says van den Boom, adding that the company will largely focus on its portfolio of products for noninvasive prenatal applications, including the MaterniT Genome laboratory-developed test. “Because these advantages are considerable, it is essential for us to concentrate our resources on making the most of our opportunities in women’s health.”
For more information, visit Sequenom.
