Caliper Life Sciences Inc. (NSDQ:CALP) closed an $11 million deal to sell Xenogen Biosciences Corp. to Taconic Farms Inc. and lowered its fourth-quarter guidance as a result.
The Hopkinton, Mass.-based lab equipment and services provider acquired XenBio subsidiary, which supplies genetically altered small animals to drug developers, when it bought Xenogen Corp. in 2006. About 90 percent of the business involves selling genetically engineered rodents called “light producing transgenic animals,” which have been modified to produce substances that fluoresce when examined using special imaging equipment, according to Caliper’s website.
Caliper makes the equipment designed to highlight these “optical reporters,” such as luciferase, and the deal includes a distribution agreement between the company and Taconic. The Hudson, N.Y.-based small research animal supplier will distribute the Caliper light-producing transgenic animals and have the non-exclusive right to “perform imaging services under Caliper’s extensive patent estate in this field,” according to a press release. Taconic will also be able to develop new LPTA lines compatible with the Ivis imaging system.
Caliper president and CEO Kevin Hrusovsky said the deal help his company consolidate and focus on one of its core businesses, optical imaging. Caliper will get about $9 million in cash up front during the fourth quarter, plus future payments from the distribution and licensing deal.
The company downgraded its sales forecast for the fourth quarter as a result of the deal, to $33 million to $35 million. Its previous guidance was for Q4 revenues of $34.5 million to $36.5 million.
Caliper narrowed its net loss by more than 37 percent during the third quarter, despite a top-line slide of nearly 6 percent, with revenues of $32.2 million during the three months ended Sept. 30 (compared with $34 million during the same period last year). Net losses for the quarter were $3.4 million, down 37.4 percent compared with $5.4 million during the third quarter of 2008.
Leave a Reply
You must be logged in to post a comment.