Nanogen undertakes evaluation of strategic alternatives for microarray business

Co announced that it is evaluating strategic alternatives for its microarray business as part of an aggressive plan to achieve profitability. The microarray business includes the co's NanoChip instrument system and related multiplexed reagents and consumables. The co has retained Credit Suisse to assist in the evaluation of alternatives which may include a sale, partnering or closure of the array business. The co expects to complete its evaluation of strategic alternatives within sixty to ninety days. Co says, "Financial expectations for the restructured business have not been completed and are dependent on the outcome of the strategic evaluation. While specific goals will be discussed after the conclusion of our evaluation process, we expect that sale or closure of the microarray business will decrease expenses and improve cash flow by at least $15 mln annually. We also expect the restructured business will show revenue growth on a year over year basis."