Sequenom to Shut Michigan Lab, Discontinue Rhesus Test

San Diego-based Sequenom has decided to shutter its laboratory facility in Michigan and will move its operations to another facility in North Carolina.

The laboratory in Grand Rapids, Mich. had performed the company's genomic test to detect carriers of the cystic fibrosis gene. That test will now be performed at the company's lab in Raleigh Durham, N.C. That lab will also perform the company's newest assay, HerediT.

"The expansion of our North Carolina laboratory operations to include our HerediT CF carrier screen test will enable us to continue to provide high quality and meaningful test offerings to physicians and their patients while continuing to build value for our shareholders," said Sequenom Chief Executive Officer William Welch in a statement.

In addition to the Michigan lab closure, Sequenom also said it would discontinue its Fetal RHD Genotyping test, which it began offering in 2010. The company indicated that the test, which is used to detect the Rhesus D gene in fetuses, had not contributed significantly to its revenues. It noted that the test may be introduced at a later time.

The announcement of the Michigan lab's closure comes six-and-a-half years after Sequenom acquired it for $4 million in stock and cash from regional hospital operator Spectrum Health and the Van Andel Institute. Sequenom also received a tax incentive package valued at $20 million through 2018 in exchange for a $20.2 million investment in the community.

The company said in a statement that it would "provide transition services and outplacement assistance to affected employees," but declined to provide any specifics about how many jobs would be cut.

"This move enables Sequenom to consolidate locations, and affects a small number of employees," a spokesperson said in response to an email query.

Takeaway: Sequenom is focused on creating efficiencies through facility and test elimination.