Complete Genomics Pops After Restructuring Plan and Strategic Review
Shares of Complete Genomics (NASDAQ: GNOM) are seeing much strength during Tuesday's trading session after the company announced it announced a plan for strategic alternatives and restructuring initiatives.
The company stated it taking steps to reduce cash consumption and has contacted Jefferies & Company to assist it in exploring strategic alternatives. Complete Genomics also plans to focus on development of clinical applications for its whole human genome sequencing service, while continuing to provide genomes to research customers.
"Leading hospitals, health care systems and physicians are beginning to adopt whole human genome sequencing for clinical applications," said Dr. Clifford Reid, Complete's Chairman, President, and CEO. "Our industry-leading accuracy should position us well to capture this emerging opportunity."
Complete will maintain its current monthly capacity of approximately 1,000 genomes at 40x coverage or 500 genomes at 80x coverage. The company expects to delay capacity expansion beyond those numbers until demand for clinical-grade genomes supports expansion. The delay in expanding capacity is resulting in deferred capital expenditures and job cuts, primarily in field and factory headcount. Approximately 55 employee positions in Mountain View, California, and other U.S. locations will be eliminated.
Currently, shares of Complete Genomics are trading up over 14% at $2.33 per share; however, the stock is still down over 20% year-to-date.
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