Nanogen Inc., a San Diego-based maker of diagnostic products, said Nov. 12 that it would close its microarray business and cut its work force by 20 percent.
The company had announced Sept. 17 that it would evaluate selling, partnering or closing its microarray business as part of an aggressive plan to achieve profitability.
Nanogen said the goal of the strategic evaluation was to create a restructured business at Nanogen that can reach profitability faster and with greater predictability.
“It’s a new technology that was product ready but not quite ready for the market yet,” said David Ludvigson, Nanogen’s president and chief operating officer, in a phone interview Nov. 12.
He said the microarray unit accounted for the smallest percentage , about 10 percent , of the company’s revenues from its three business units.
Closing the business is expected to help Nanogen improve cash flows by as much as $15 million a year, the company said.
The restructured business will continue to focus on clinical diagnostic markets with emphasis on real-time molecular and rapid point-of-care products.
Nanogen trades on the Nasdaq as NGEN. Shares closed at 70 cents on Nov. 12.
, Heather Chambers