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news.Sequenom, a diagnostic testing and genetics analysis company, has reported that it is decreasing its workforce by approximately 30 employees in the genetic analysis business as part of its cost cutting initiatives to ensure the unit remains financially strong.
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The measures are expected to generate increased operational efficiencies and reduce costs while continuing to allow Sequenom to serve the needs of its current and future genetic analysis customers. The realignment along with other efficiencies is expected to result in an $8 million decrease in costs in 2009 and an annualized reduction in costs of $10 million.
In addition, Sequenom said that it is also repositioning the genetics analysis business to better exploit potential synergies with the molecular diagnostic business by focusing on developing methods and assays for translational research and patient profiling in clinical trials. These measures are also designed to leverage the short- and longer-term potential of the company’s molecular diagnostics business, where Sequenom continues to invest.
Harry Stylli, president and CEO of Sequenom, said: “These actions are difficult but essential. While we remain optimistic that the outlook for the genetic analysis business will improve, we also need to exercise financial prudence to ensure that our capital resources are properly allocated and utilized.
“We will continue to serve our traditional customers such as academic institutions focused on genotyping, methylation and gene expression. However, as our system uniquely combines high throughput with highly quantitative capabilities, our business unit has great potential value in new and growing markets, such as translational research, and in better exploiting the interface with the molecular diagnostics business.”