Navigation Links
Transgenomic Announces Closing of the Acquisition of Clinical Data's Diagnostic Business and the Closing of a $6 Million Financing

OMAHA, Neb., Dec. 29, 2010 /PRNewswire-FirstCall/ -- Transgenomic, Inc. (OTC Bulletin Board: TBIO) announced today that it has closed the acquisition of Clinical Data, Inc.'s (Nasdaq: CLDA) diagnostic business with a sales price of $15.5 million.  In addition, the company has closed on $6.0 million of financing from Third Security, LLC, a leading life sciences investment firm, to fund the cash portion of Transgenomic's acquisition of Clinical Data's diagnostic business.  This strategic acquisition provides Transgenomic with proprietary genetic commercial tests that have an established revenue base, proprietary biomarker assays, an additional CLIA-certified laboratory operation and established test reimbursement and coverage policies that offer access to testing for an estimated 280 million patients.

Under the terms of the financing with Third Security, the Company has issued an aggregate of 2,586,205 shares of the Company's newly created Series A convertible preferred stock to certain affiliates of Third Security for an aggregate purchase price of $6.0 million.  Additionally, the Company issued such affiliates of Third Security warrants to purchase an aggregate of up to 1,293,102 shares of Series A preferred stock at an exercise price of $2.32 per share.  The Series A preferred shares issuable pursuant to the purchase agreement and upon exercise of the warrants are convertible into shares of the Company's common stock at a conversion price of $0.58 per share, for an aggregate of 15,517,228 million shares of common stock.  Upon full exercise of the warrants, Transgenomic will receive approximately $3.0 million.  

Commenting on the acquisition of Clinical Data's diagnostic business, Craig Tuttle, Chief Executive Officer of Transgenomic, said, "We are very excited about the acquisition, which strengthens our molecular diagnostics position in the marketplace, expands our commercial operation with an accomplished team that will improve our competitive position and enhances our customer support and patient care capabilities.  We are also very excited about building a strategic relationship and having the support of such a respected investor as Third Security and Randal Kirk.  Their knowledge of our industry will be beneficial in catapulting Transgenomic into the top tier of diagnostic providers."

Commenting on the investment, Randal Kirk, Senior Managing Director and Chief Executive Officer of Third Security, LLC said, "Transgenomic's strong management team, broad product offering and state-of-the-art technology position the Company for growth in a significant and underserved market.  We look forward to working with Craig Tuttle and his management team to help Transgenomic expand and realize its growth plans." 

Griffin Securities, Inc. acted as financial adviser and placement agent to Transgenomic, Inc. on this transaction.

About Transgenomic, Inc.

Transgenomic, Inc. ( ) is a global biotechnology company specializing in high sensitivity genetic variation and mutation analysis, providing products and services in DNA mutation detection and discovery for clinical research, clinical molecular diagnostics and pharmacogenomics analyses. Its product offerings include the WAVE® Systems and associated consumables specifically designed for use in genetic variation detection and single- and double-strand DNA/RNA analysis and purification. With broad applicability to genetic research, nearly 1,500 systems have been shipped to customers in more than 50 countries. The SURVEYOR® Mutation Detection Kits and SURVEYOR Check-It Kit provide reagents and protocols for high sensitivity detection of mutations in DNA. In addition, HANABI automated chromosome harvesting systems improve laboratory productivity with consistent quality compared with manual methods for cytogenetic analyses. Service offerings include the Transgenomic Molecular Laboratory, which provides reference laboratory services specializing in molecular diagnostics including Mitochondrial Disorders, Oncology and Hematology, Molecular Pathology and Inherited Diseases. Transgenomic Pharmacogenomics Services is a CRO for pharmacogenomic, translational research and clinical trials.

Forward Looking Statements

Certain statements in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements relate to a variety of matters, including but not limited to: the benefits and synergies expected to result from the asset acquisition; the anticipated customer base for Transgenomic following the completion of the asset acquisition; and other statements that are not purely statements of historical fact. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Transgenomic and are subject to significant risks and uncertainty.   Investors are cautioned not to place undue reliance on any such forward-looking statements.  All such forward-looking statements speak only as of the date they are made, and Transgenomic undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise.  Factors that could cause actual results to differ materially from the forward-looking statements contained herein include, but are not limited to: any operational or cultural difficulties associated with the integration of the assets being acquired; potential adverse reactions or changes to business relationships resulting from the announcement or completion of the asset acquisition; unexpected costs, charges or expenses resulting from the  asset acquisition; litigation or adverse judgments relating to the  asset acquisition; risks relating to the consummation of the asset acquisition, including the failure to realize synergies and cost savings from the transaction or delay in realization thereof; any difficulties associated with requests or directions from governmental authorities resulting from their reviews of the transaction; and any changes in general economic and/or industry-specific conditions. Additional factors that could cause actual results to differ materially from those described in the forward-looking statements are set forth in the Annual Report on Form 10-K of Transgenomic for the year ended December 31, 2009, which was filed with the Securities and Exchange Commission ("SEC") on February 25, 2010, under the heading "Item 1A—Risk Factors" and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Transgenomic.

SOURCE Transgenomic, Inc.
Copyright©2010 PR Newswire.
All rights reserved

Related medicine technology :

1. Transgenomic Expands Distribution of SURVEYOR® Scan K-RAS Mutation Detection Kit With CE IVD Mark
2. Transgenomic to Present at the Rodman & Renshaw 12th Annual Global Investment Conference
3. Transgenomic to Present at the Noble Financial Sixth Annual Equity Conference - ONTRACK 2010
4. Transgenomic Reports Fourth Quarter Financial Results
5. Transgenomic Demonstrates Very High Sensitivity Detection of Tumor-Associated KRAS Mutations in Matched Plasma Samples Using COLD-PCR
6. Transgenomic, Inc. Executes License Option agreement for Parkinsons Disease Diagnostic Markers with Gene Solutions, LLC
7. Reminder Webcast Alert: Transgenomic, Inc. Announces Third Quarter 2009 Earnings Release Conference Call Webcast
8. Webcast Alert: Transgenomic Inc. Announces Third Quarter 2009 Earnings Release Conference Call Webcast
9. Transgenomic Signs Exclusive License for Cold-PCR Technology From the Dana-Farber Cancer Institute
10. Transgenomic and Power3 Medical Complete Agreement for Exclusive License of Neurodegenerative Biomarker Test
11. Transgenomic Establishes Collaboration With the National Cancer Institute to Investigate Mitochondrial Genome and Associated Nuclear Genes in Cancer Cell Lines
Post Your Comments:
(Date:10/12/2015)... Va. , Oct. 12, 2015  Today, Divurgent is ... of Advisory Services. As a former CIO, Paul brings 15 ... not just understand or sympathize with today,s CIOs, he is ... the same challenges Paul has faced, and his new role ... in ensuring technology efficiencies across an organization. ...
(Date:10/12/2015)... DENVER , Oct. 12, 2015 Beginning ... ICD-10 Codes. Therapy Partner, the fastest growing practice management ... automated technology that easily converts all patient diagnostic codes ... --> --> ... Brief for all mental health practitioners to easily understand ...
(Date:10/12/2015)... INDIANAPOLIS , Oct. 12, 2015 Eli ... ACCELERATE study,s academic leadership have accepted the recommendation of ... 3 trial of the investigational medicine evacetrapib, due to ... the treatment of high-risk atherosclerotic cardiovascular disease and will ... --> --> The independent data ...
Breaking Medicine Technology:
(Date:10/13/2015)... ... October 13, 2015 , ... ... have developed valuable new strategies for enrolling and serving insurance consumers who do ... obtain health insurance and pay monthly premiums. In “Health Plan Engagement Strategies: The ...
(Date:10/13/2015)... (PRWEB) , ... October 13, 2015 , ... ... smoke-free communities, and the Florida Apartment Association (FAA) has partnered with the Florida ... communities meet the demand. , The FAA Smoke-Free Multifamily Housing Program launched ...
(Date:10/13/2015)... ... 13, 2015 , ... Just under three months ago, eMarketing Concepts ... promotion – effectively offering all of their services for just a buck in the ... flooded with phone calls from interested buyers. As a genuine one-stop-shop for internet marketing, ...
(Date:10/13/2015)... ... October 13, 2015 , ... ... a new PDF automation tool to batch conversions of CAD drawings, plans, ... 100% document fidelity. , CADConverter eliminates the complexity requirement of specialized applications to ...
(Date:10/13/2015)... (PRWEB) , ... October 13, 2015 , ... The Bill ... in San Diego, also offering expert reconstruction and flood remediation services. Family-owned and operated ... They have been named the Best San Diego plumber two years in a row ...
Breaking Medicine News(10 mins):