Applied Biosystems, Celera Genomics Group sales and marketing update

ABI will exclusively distribute CRA's Celera Discovery System (CDS) web-based platform of computational tools and genomics and biological data. ABI plans to combine CDS with other genomic and biological information, including genomic assays, into a new knowledge business. CRA will receive a low-to-mid single-digit royalty on new revenues from the knowledge business.

CRA, which is leveraging its genomics and proteomics technologies to develop therapeutics, will continue to earn revenues from existing CDS customers, although if changes are made to subscriptions through a renewal, the revenue stream will shift to ABI. CRA was expecting $62.5 million in EBITDA from CDS committed subscription contracts over the next four years. ABI will reimburse CRA for any CDS shortfall below this level. In addition, ABI estimated cashflow to CRA would be in the range of $200-$300 million over the deal's 10-year term. CRA and ABI are businesses of Applera Corp. (Norwalk, Conn.). ...