A Medical Device Daily
Clinical Data (Newton, Massachusetts) reported that it has completed the sale of Cogenics, the company's genomics services division, to Beckman Coulter (Fullerton, California) for $17 million. The deal was first disclosed earlier this month (Medical Device Daily, April 3, 2009). The sale achieves Clinical Data's goal to monetize non-core assets and focus resources on advancing its two late-stage targeted therapeutic programs, each of which have anticipated near-term milestone events.
These significant events include completing a second Phase III registration trial and planned new drug application (NDA) filing for vilazodone, a first-in-class drug candidate for the treatment of depression, and the initiation of a Phase III clinical program for Stedivaze, a cardiac stress agent.
At the closing, Clinical Data was paid $15.4 million in cash after adjustments, with $2.5 million held in escrow for 18 months. Clinical Data also retained approximately $2.2 million in cash from Cogenics immediately prior to the sale, resulting in net cash proceeds of $14.9 million. In exchange, Beckman Coulter acquired all of Cogenics' operations in the U.S., U.K., Germany and France.
Cogenics' genomics solutions span current and next generation sequencing, gene expression, clinical and non-clinical genotyping, biomanufacturing support, nucleic acid extraction and biobanking for both research and regulated environments. Cogenics' customers include leading pharmaceutical and biotechnology companies, the U.S. National Institutes of Health agencies, government and academic researchers in the international life science community, and major agricultural companies and agencies.
In other dealmaking news, Prospect Medical Holdings (Los Angeles) said that Brotman Medical Center (Culver City, California) officially exited from Chapter 11 Bankruptcy Protection on April 14, 2009, and that the company has increased its ownership in Brotman from approximately 33% to approximately 72%. In exchange for its increased interest, Prospect made an additional investment of $1.8 million, and anticipates making a further investment of $0.7 million within six months. Four existing shareholders of Brotman own the remaining 28%.
Brotman's emergence from bankruptcy and Prospect's majority ownership in the facility evidence the institution's successful reorganization and its improved standing as a financially strong, well-run and needed hospital in the Culver City and West Los Angeles communities.