Collaborative Research Inc. announced Thursday that it intendsto sell its genetic and cancer testing business, CollaborativeDiagnostics.
The move is part of the strategic restructuring initiated by thecompany's new president and chief executive officer, RobertHennessey. "The financial commitment required for asuccessful growth strategy in cancer and genetic diagnostictesting falls well beyond available resources," Hennesseyexplained.
In fact, Hennessey brought with him to Collaborative more than25 years of strategic planning, acquisition, licensing andstrategic partnering experience in pharmaceuticals andbiotechnology. He was appointed president and CEO on March15.
His announced intent was -- and is -- to "transitionCollaborative's scientific strengths toward proprietarytherapeutics through internal R&D efforts coupled with astrategy of both in-licensing complementary technology andforming strategic alliances with pharmaceutical partners."
Collaborative (NASDAQ:CRIC) has developed large-scale systemsfor genome mapping and DNA sequencing. It also has a majoreffort directed at cloning the genes responsible for diseasessuch as tuberculosis, non-insulin dependent diabetes,schizophrenia and hypertension. Projects now slotted to receivepriority attention are in tuberculosis, drug screeningmethodologies, cardiology and a variety of cancers.
Collaborative Research reported an increase in 1993 first-quarter revenues of 27 percent over the previous year. Thecompany even attributed most of the increase to "continuedgrowth of the research and diagnostic testing businesses, whichgrew 28 percent and 36 percent respectively."
But costs and expenses also increased, resulting in a net lossper share of 7 cents a share compared with 5 cents a share thefirst quarter of 1992.
The stock closed unchanged Thursday at $2 a share.
-- Jennifer Van Brunt Senior Editor
(c) 1997 American Health Consultants. All rights reserved.