Solexa and Lynx agree merger

UK-based Solexa has agreed a merger with US company Lynx Therapeutics to create a leading company in the area of future DNA sequencing technologies.

The deal is expected to be completed by the end of the year, subject to shareholder approval.

Next generation DNA sequencing is expected to be based on molecular arrays, and the two companies have each been advancing toward this target for more than five years. By combining technologies, intellectual property and highly experienced staffs, the companies expect to accelerate development with the goal of releasing their first commercial instrument system in 2005.

Following the completion of the merger, the combined company will continue to operate in both the UK and the US. John West, currently ceo of Solexa, will assume the same position in the combined company. Together the companies have more than 120 employees and dozens of issued patents directly owned or already licensed.

'This combination brings together the remarkably complementary strengths of the two companies,' said West. 'Solexa has extensive experience in single molecule sequencing and has inexpensively manufactured its proprietary enzymes, a key cost advantage for future sequencing systems. Lynx has a highly experienced commercial instrument development team and an instrument design already in its third generation. We expect to leverage this proven instrument technology for our new molecular array approach.'

Earlier in 2004, the two companies jointly acquired intellectual property rights for DNA amplification on single molecule arrays. These amplified arrays are referred to as cluster technology. The combined company will be unique in its ability to market both cluster systems and single molecule systems.

In an unrelated transaction recently, Solexa received an additional $14 million in venture capital financing, bringing its total to date to over $40 million. This new investment will be applied to the development of Solexa's revolutionary systems for the comprehensive, ultra-high throughput and economical analysis of individual genomes, based on its breakthrough single molecule-based sequencing technology. It will also enable the company to begin commercialisation of its services and systems on a global basis.