Cambridge based biotech Horizon Discovery, in a step towards its aim to become the world leader in human gene editing, has announced the acquisition of the gene technology arm of US giant General Electric (GE) late last week.
Based in Lafayette, Dharmacon is an indirect wholly owned subsidiary of GE that has grown into a leading provider of RNA interference (RNAi) products, with a gene-editing product portfolio specializing in CRISPR reagents and arrayed libraries.
Horizon is to acquire Dharmacon for $85m (£65m), funded by an £80m share placing.
Both Horizon and Dharmacon work in the fast-emerging field of gene manipulation, a market expected to be worth £1.6bn next year and to ultimately be worth as much as £40bn. Horizon specialises in making permanent changes to genes, while Dharmacon performs gene modulation to change a cell’s protein levels.
The acquisition “positions Horizon as a world leader in building, engineering, and modulating cells,” CFO Richard Vellacott declared. Added Horizon CEO Darrin Disley in a statement yesterday: “We expect that the brand recognition, and sales, marketing (including eCommerce) and distribution channel particularly in the academic community, as well as intimate relationships in biotech and pharma that Dharmacon will bring to Horizon, will transform the opportunity
for Horizon’s product portfolio as well as generate attractive cost-base synergies.”“We believe that the combination creates a global leader in gene modulation and are excited to retain a meaningful stake in the combination,” GE Healthcare president and CEO Kieran Murphy added.
The takeover deal comprises $50m in cash and $35m in shares issued to GE, which will own an 8.8pc stake in the enlarged group. The deal is expected to double Horizon’s 2016 revenues of £24.1 million ($31.3 million).
