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Lumera shuts down Plexera.

Bothell, WA 3/27/08 -- In conjunction with its plan to merge with integrated circuits supplier GigOptix, Lumera has announced that operations of Plexera Biosciences, its life science instrument subsidiary, will cease immediately. Publicly held Lumera will merge its Electro-Optics segment with GigOptix, thereby taking GigOptix public. Lumera Chairman C. James Judson stated: "[W]e do not have enough cash resources to see both businesses reach their full commercial potential. After carefully considering our strategic options, it became clear that the greatest shareholder value would be derived by focusing on our electro-optic business." Plexera was developing Kx Array Technology, a microarray-formatted surface plasmon resonance system for drug discovery, which was in beta testing at several universities and the Institute for Systems Biology. The subsidiary had yet to record any revenue, but reported an operating loss for 2007 of $5.7 million, up from $4.4 million in 2006. Lumera stated that it plans to realize the value of Plexera's assets and intellectual property through other means.

In a conference call, Lumera explained that it had been seeking strategic alternatives for Plexera since the formation of the subsidiary last summer (see IBO 9/30/07). Due to technical "hurdles" and the need to further develop the instrument for customer acceptance, Lumera estimated that $6-$8 million would be needed in 2008 to launch the instrument and at least the same amount in 2009 to develop high-content arrays
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Title Annotation:Executive Briefing: News & Views for Executives
Publication:Instrument Business Outlook
Date:Mar 31, 2008
Words:236
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