British biotech Horizon Discovery has taken a big step towards becoming a world leader in human gene editing with the acquisition of the gene technology arm of US giant General Electric (GE). AIM-listed Horizon has bought wholly-owned GE subsidiary Dharmacon for $85m (£65m), funded by an £80m share placing. The acquisition more than double’s Horizon’s revenues, which stood at £24m last year, and increases its access to the lucrative US market, which was already its number one market via its division based in St Louis. In 2016, Dharmacon delivered revenues of $36.7m and earnings of $5.4m. Both Horizon and Dharmacon work in the fast-emerging field of gene manipulation, a market expected to be worth £1.6bn next year and to ultimately be worth as much as £40bn, according to analysts. Horizon specialises in making permanent changes to genes, while Dharmacon performs gene modulation to change a cell’s protein levels. Both produce products used by academics and drugs companies in the search for cures for diseases such as cancer and Alzheimer’s. The takeover deal comprises $50m in cash and $35m in shares issued to GE, which will own an 8.8pc stake in the enlarged group. The balance of Horizon’s fundraising will be used to provide additional working capital.
UK biotech firm Horizon Discovery has acquired the gene tech subsidiary of General Electric, Dharmacon, extending its position in the gene manipulation market. Dharmacon was purchased for £65m ($85m) with funds from an £80m share placing, with the acquisition more than doubling the company's 2016 revenue of £24m. The purchase will increase Horizon Discovery's access to the British market, which is presently its largest client market.