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12:00 AM
Aug 18, 2003
 |  BioCentury  |  Strategy

Two products better than one

DNA sequencing company Pyrosequencing AB and chemistry company Personal Chemistry AB believe they can save $9 million a year in expenses by combining, and perhaps reach break even next year. But with two unrelated product lines that are sold into two different markets, the leverage for creating a diversified global supply company is less clear.

The deal is the first done by Jeff Bork, who recently became chairman of Pyrosequencing (SSE:PYRO A, Uppsala, Sweden).

"I stepped in as chairman of Pyro in April and showed the board a plan for potential acquisitions," he said. "At that time I started to talk to a number of companies and the first to come on board is Personal Chemistry. We think we can reduce the burn rate and make a successful company much quicker than if either of them were left to go its own way. There are quite a lot of administrative synergies. We think we can save about $9 million per year."

For the first half of 2003, PYRO A had net sales of SEK41 million ($5.1 million) and an operating loss of SEK83 million ($10.4 million). Personal Chemistry (Uppsala) had...

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