Gene Logic, Inc. signed an agreement to sell its Genomics assets to Ocimum Biosolutions Ltd. for $10 million in cash. Under the terms of the agreement, Gene Logic retains full rights to use the existing information databases of its former Genomics business in building its drug repositioning and development business and will retain specified assets related to molecular diagnostics. Ocimum will assume certain liabilities associated with the Genomics assets and business. The sale is subject to certain conditions, including the approval of the Gene Logic shareholders.
“This is a transforming event of significant strategic proportion,” said Charles L. Dimmler, III, president and chief executive officer of Gene Logic. “This agreement stands as another major milestone on the company’s path to build a drug repositioning and development business. This event marks a turning point in the transitional phase of Gene Logic’s strategic redesign and enables the company to execute with singular focus: to concentrate its proprietary know-how in this newly emerging segment of drug development, a business the Company believes will produce great value potentially for our shareholders.”
Gene Logic’s development work will now focus on its clinical-stage small molecule drug candidate, GL1001. The company is preparing to manufacture the drug for research in treating gastrointestinal disease, and plans to file an IND application for additional clinical trials. Also, the company recently announced positive in vivo model results for GL1001 in inflammatory bowel disease (IBD). Gene Logic is pursuing potential partnerships for the drug in order to maximize the full commercial potential in gastrointestinal disorders.