- December 21, 2021
- Posted by: Stratford Team
- Category: Business
Transaction Adds Cash to Balance Sheet and Further Reduces Operating Expenses
SAN DIEGO, Dec. 20, 2021 (GLOBE NEWSWIRE) — Progenity, Inc. (Nasdaq: PROG), a biotechnology company innovating in the field of oral biotherapeutics for gastrointestinal health and beyond, today announced it has successfully closed the business divestiture of its affiliate Avero Diagnostics through an asset sale to Northwest Pathology.
“The sale of our Avero Diagnostics affiliate results in a further annual operating expense reduction of approximately $28 million, bringing the total reduction in annual operating expenses to approximately $145 million compared to the second quarter. This reduction, along with capital raised, should extend our cash runway beyond the end of 2022 and reduce our dependency on the capital markets,” said Eric d’Esparbes, Chief Financial Officer of Progenity.
The purchase price was $10.9 million, subject to certain customary adjustments as set…
