Following the receipt of a non-binding takeover bid, Singular Genomics Systems, Inc. (NASDAQ: OMIC) noticed a dramatic increase in stock price on U.S. stock charts. OMIC shares rose 2.73% during normal session to close at $5.65, and then gained 67.43% in after-hours trading to reach $9.46.
Singular Genomics Received Acquisition Proposal
Deerfield Management Company, L.P. submitted a non-binding bid to Singular Genomics, together with some related funds. In the proposal, Deerfield states that it intends to pay $10.00 in cash per share to acquire all outstanding shares of Singular Genomics that it does not currently hold.
As an existing stockholder, Deerfield expressed its intention to involve other major shareholders and existing management in rolling over their shares into the newly formed company.
OMIC Board Will Make A Strategic Review
The board of directors of Singular Genomics has previously established a special committee of independent directors to look into and evaluate the company’s strategic options. It will now assess Deerfield’s proposal as a component of a more comprehensive analysis of the company’s future trajectory.
Advancements in G4X Platform and Spatial Sequencing
During the recently concluded quarter, Singular Genomics made notable progress in the development of its G4X Spatial Sequencer, while continuing to support existing G4 customers. The company’s early efforts to introduce Spatial Technology Access Services have been met with positive interest, signaling the potential market demand for the G4X’s unique capabilities and higher sample throughput.
Singular Genomics is preparing for the early access launch of the G4X platform in late 2024 and has initiated the Spatial Sequencing Technology Access Services program, starting with a focus on the V1 immuno-oncology panel.
Financial Performance and Strategic Adjustments
In the second quarter of 2024, Singular Genomics reported $0.7 million in revenue and successfully shipped two G4 systems. Additionally, the company amended a long-term lease obligation, optimizing its facilities footprint and reducing long-term lease obligations by approximately $50 million. These measures reflect Singular Genomics’ commitment to financial prudence while advancing its technological capabilities.
