By Lisa Seachrist

Washington Editor

Industrial genomics specialist Sequenom Inc. is looking to raise $70 million in an initial public offering of common stock, according to a registration statement filed with the SEC. That statement, however, didn't detail the number of shares the company intends to sell nor the asking price.

The money will be used to hire additional sales and customer support staff for its expanding single nucleotide polymorphism (SNP) genotyping business. In addition, San Diego-based Sequenom will use the proceeds of the offering to expand its facilities, develop new products and repay a long-term debt and accrued interest of $4.2 million.

The offering is being managed by Warburg Dillon Read LLC, of New York. BancBoston Robertson Stephens Inc., of New York, and SG Cowen Securities Corp., of Boston, will assist in managing the offering. The underwriters will be granted a 30-day overallotment option.

Sequenom intends to be a significant player in the SNP genotyping market. These small variations in genes are the origin of most differences between individuals, including disease predisposition and variations in drug responses. SNP analysis is ramping up to play a critical role not only in genomic research, but in drug discovery, DNA diagnostics, patient stratification in clinical trials, seed development and livestock breeding.

Current methods for SNP analysis often are inaccurate, non-automated, inflexible, slow and expensive. In order to sidestep those pitfalls, Sequenom employs a direct system of analyzing SNPs using mass spectrometry in its MassArray system. The technology can analyze large numbers of DNA samples against a well-defined and large set of genetic parameters by combining miniaturized chip technology with high-fidelity enzymatic procedures and mass spectrometry.

The company views its DNA MassArray Automated Process Line (APL) as a means to bridge the gap between basic genetics information and the need to choose an economically viable product development path by quickly identifying which genomic targets or genes are suitable candidates for further study. The system, which is designed to be operated around the clock, can analyze up to 10,000 genotypes per day.

The MassArray system is in beta-testing in academic, government and commercial centers. Among the organizations serving as beta-testing centers for the system are Genzyme Corp., of Cambridge, Mass.; the U.S. Department of Agriculture, in Beltsville, Md.; the National Institutes of Health and the National Cancer Institute in Bethesda, Md.; and the University of Munster and GLE Medicon in Germany.

Sequenom is planning to launch its MassArray system in December. In addition, the company is planning to develop proprietary disposable SNP tests, called assays, and software products that are useful initially as research tools to confirm the association of particular SNPs with particular diseases. And subsequently as diagnostic kits that can be sold for SNP profiling.