San Diego diagnostic maker Sequenom Inc. announced Thursday that it will cut 110 jobs, or about 20 percent of its workforce, and divest its North Carolina operations.
The cuts are intended to reduce operating costs and fine-tune the company’s focus on women’s health products.
Sequenom, which has about 500 employees, said it expects to save over $20 million in annual costs in late 2016, up from its previous expectation of over $10 million.
The company intends to sell its operations in Research Triangle Park, North Carolina, where Sequenom maintains a clinical genomic laboratory for processing noninvasive prenatal tests and other reproductive health tests. Operations currently conducted in North Carolina will be consolidated in San Diego throughout the first half of 2016, according to a Sequenom news release.
Sequenom is also seeking strategic partnerships to commercialize its liquid biopsy test for cancer, with intentions to reduce R&D spending in the oncology area.
“We believe these changes will position Sequenom to achieve higher levels of near-term performance while still allowing us to pursue our longer-term potential,” said Sequenom President and CEO Dirk van den Boom in a statement. “We have the most comprehensive portfolio of products for noninvasive prenatal applications, a game-changing new product in our MaterniT GENOME laboratory-developed test, an experienced sales force, and an increased focus on serving physicians addressing average-risk pregnancies. Because these advantages are considerable, it is essential for us to concentrate our resources on making the most of our opportunities in women’s health.”
The company will focus its research and development programs on tests used by obstetricians, gynecologists and maternal fetal medicine specialists, and expand its presence in the obstetrics and gynecology sales channel.
“In making these changes, we are committed to unlocking the value that already exists in the business,” van den Boom said.