Sequenom to Buy Gemini Genomics In Stock Accord
Sequenom Inc., a genomics-based biotechnology company, said it will acquire Gemini Genomics PLC of the United Kingdom in a stock swap valued at about $226.8 million, one of the first in what analysts expect to be a series of consolidations among genomics companies.</br></br>The deal combines two companies that are already working together closely in the search for human diseases linked to genetic defects. Both companies also reaped tremendous rewards by making initial public offerings during the 2000 biotech stock-market boom -- and both have also seen their stock prices plummet since then.</br></br>Sequenom, of San Diego, makes systems for sifting through genetic data in order to pinpoint meaningful genetic differences that might be linked to disease. Gemini, of Cambridge, England, has focused on amassing large databases of genetic data from twins, disease-affected families and participants in drug trials. The two companies struck a research partnership last June, one that has already produced tentative gene candidates linked to heart disease.</br></br>Under the terms of the agreement, Gemini shareholders will receive 0.2 share of Sequenom in exchange for each share of Gemini stock. Sequenom shares dropped 11% on news of the deal, and as of 4 p.m. traded at $15.75, down $1.93, on the Nasdaq Stock Market.</br></br>Analysts generally applauded the deal, which they suggest is a harbinger of things to come among genomics firms and so-called platform companies, which build systems for processing and analyzing genetic data.