The Hindu Business Line : Ocimum Bio buys US co Gene Logic’s genomic biz

Hyderabad, Oct. 17 Ocimum Biosolutions has struck a deal to acquire the genomics business of the US-based listed entity, Gene Logic for $10 million in cash.

The purchase agreement includes the Maryland-headquartered, Gene Logic’s Knowledge Products business, which is anchored by the world’s largest databases of human biology.

Third acquisition

For the privately held Ocimum Biosolutions, the Hyderabad-based mid-sized company, this is the third acquisition in the last three years. It acquired the micro-array (gene chip) division of MWG Biotech of Germany in 2004-05; and the biomolecules division of Isogen LifeSciences of Netherlands in 2006.

Ocimum is part of the Ficus Enterprises, a group of 11 companies in five different industrial segments from Hyderabad. The IFC (International Finance Corporation), the private equity arm of the World Bank Group, had also picked a minority stake and debt for $6.5 million in November 2006.

The funds, the first private equity into the company, would be used for charting future growth plans of the company, especially through acquisitions across geographies, the Chief Executive Officer (CEO), Ms Anuradha Acharya, had told Business Line.

Ocimum Biosolutions has its US headquarters in Indianapolis, Indiana. It has established its European headquarters in Ijsselstein, The Netherlands.

As part of the present deal, Ocimum Biosolutions has also acquired Gene Logic’s genomic and genetic services business, which provides customers with access to a bio-repository of over 80,000 samples, targeted sample accrual using its clinical network, data generation on multiple platforms including Affymetrix, Agilent, ABI and others.

Ocimum Biosolutions will continue to operate the business out of the current modern laboratory facility in Gaithersburg, Maryland.

Gene Logic had been operating in two segments, genomics and drug repositioning, which seeks to find new uses for existing drugs and for drugs that failed clinical trials. It operates a rediscovery and development facility in Cambridge, Massachusetts.

premiere business

Commenting on the acquisition, Ms Acharya, said, “The genomics business, when integrated with Ocimum’s strengths in BioIT, BioMolecules and BioResearch groups, forms a premiere business that can support multiple aspects of the life sciences industry. Gene Logic’s Genomics customers will also benefit from Ocimum’s global presence.”

O3 Capital, a boutique investment banking firm that offers financial advisory and securities brokerage services based in Mumbai, advised Ocimum on the deal.

More Stories on : Mergers & Acquisitions | Pharmaceuticals | Health

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page