SAN DIEGO, Jan. 7, 2016 /PRNewswire/ -- Sequenom, Inc.
(NASDAQ: SQNM), a life sciences company committed to enabling
healthier lives through the development of innovative products and
services, today announced actions 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. Among these initiatives are plans to divest
Sequenom's North Carolina
operations, partner non-core assets, improve laboratory efficiency
and increase organizational effectiveness.
"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," said Sequenom President and CEO
Dirk van den Boom. "We have
the most comprehensive portfolio of products for noninvasive
prenatal applications, a game changing new product in our
MaterniT® GENOME laboratory-developed test, an
experienced sales force, and an increased focus on serving
physicians addressing average risk pregnancies. 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."
The company will focus its R&D programs on broadening the
portfolio with tests serving obstetricians, gynecologists and
maternal fetal medicine specialists, and expand its presence in the
obstetrics and gynecology sales channel to better serve average
risk and high risk pregnancies seen by these physicians. "In
making these changes, we are committed to unlocking the value that
already exists in the business," said Dr. van den Boom.
Planned Sale of North Carolina Operations
In order to
better leverage its existing San
Diego infrastructure, Sequenom intends to sell its
operations in Research Triangle Park,
North Carolina, where the company maintains a clinical
genomic laboratory 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. "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," said Dr. van den
Boom. "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."
Partnership Opportunities
Sequenom will also seek
strategic partners for the commercialization of its oncology liquid
biopsy assay with a concomitant reduction in research and
development spending in this area. "We have successfully
advanced our oncology liquid biopsy assay technology and created
the most comprehensive circulating tumor DNA profiling assay, which
has multiple applications. We believe this valuable asset can
most effectively be advanced together with partners that have
clinical expertise and a distribution presence in product markets
relevant to these oncology assays," remarked Dr. van den Boom.
Operational Efficiencies, Cost Reductions, and Operating Cash
Flow Goal
To improve the efficiency of its overall
operations, Sequenom has conducted a detailed review of all of its
operating functions, internal staffing levels, and corporate
relationships, and intends to effect reductions in a number of
areas. Sequenom will reduce its workforce by approximately
20%, or 110 positions, out of a total of approximately 500 filled
and authorized positions. "We understand that this will be a
difficult time for our affected employees and we are committed to
act with fairness, integrity and respect, and provide support to
them during this transition. In particular, I want to give my
sincere thanks to our departing employees for their efforts and
wish them great success in the future," Dr. van den Boom said.
As a result of the restructuring program, Sequenom has increased
its previously announced expected cost savings of over $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 the efficiency initiatives and cost reductions,
Sequenom announced its goal of attaining a neutral operating cash
flow run rate before the end of 2017. "One important goal of
this restructuring is to enable Sequenom's operations to be
sustainable and self-supporting," said Dr. van den Boom.
About Sequenom
Sequenom, Inc. (NASDAQ: SQNM) is
committed to enabling healthier lives through the development of
innovative products and services. The Company serves patients
and physicians by providing early patient management
information. To learn how Sequenom is interpreting the genome
to improve your life, visit www.sequenom.com.
About Sequenom Laboratories
Sequenom Laboratories, a
CAP-accredited and CLIA-certified molecular diagnostics laboratory,
has developed a broad range of laboratory tests, with a focus
principally on prenatal care. Branded under the names
HerediT®, HerediT® UNIVERSAL,
MaterniT® GENOME, MaterniT21® PLUS,
NextView®, SensiGene® and VisibiliT™, these molecular genetic
laboratory-developed tests provide early patient management
information for obstetricians, geneticists, and maternal fetal
medicine specialists. Sequenom Laboratories is changing the
landscape in genetic diagnostics using proprietary cutting edge
technologies. Visit www.laboratories.sequenom.com and follow
@SequenomLabs.
SEQUENOM®, HerediT®,
MaterniT® GENOME, MaterniT21® PLUS,
NextView®, SensiGene®, VisibiliT™ and
Sequenom Laboratories™ are trademarks of Sequenom, Inc. All
other trademarks and service marks are the property of their
respective owners.
Forward-Looking Statements
Statements contained in
this press release regarding matters that are not historical facts
are "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 including statements
regarding the development of innovative products and services;
whether the announced actions will sharpen the Company's focus on
its core women's health business, reduce its operating costs and
optimize its organizational structure and processes; the ability to
divest the North Carolina
operations, partner non-core assets, improve laboratory efficiency
and increase organizational effectiveness; that the announced
changes will achieve higher levels of near-term performance while
still allowing the pursuit of longer-term potential; the ability to
broaden the portfolio with tests serving obstetricians,
gynecologists and maternal fetal medicine specialists; the ability
to expand the Company's presence in the obstetrics and gynecology
sales channel; that the announced changes will unlock the value
that already exists in the business; the ability to find a buyer
for the North Carolina operations
that may be able to employ some or all of the employees at the
North Carolina facility; the
ability to secure strategic partners for the commercialization of
the Company's oncology liquid biopsy assay; the ability to reduce
the Company's workforce by approximately 20%, or 110 positions, and
reduce the Company's cost of revenues and operating expenses to
achieve annualized cost savings in excess of $20 million by late 2016; and the ability to
attain a neutral operating cash flow run rate before the end of
2017. Risks are described more fully in the Company's filings
with the Securities and Exchange Commission, including without
limitation the Company's most recent Quarterly Report on Form 10-Q
and other documents subsequently filed with or furnished to the
Securities and Exchange Commission. All forward-looking
statements contained in this press release speak only as of the
date on which they were made. The Company undertakes no
obligation to update such statements to reflect events that occur
or circumstances that exist after the date on which they were
made.
Logo - http://photos.prnewswire.com/prnh/20040415/SQNMLOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/sequenom-inc-announces-restructuring-plans-sale-of-north-carolina-operations-and-initiatives-to-improve-efficiencies-300201143.html
SOURCE Sequenom, Inc.