The privately held GlycoFi has found a way to attach human sugars to yeast cells. There are many possible applications of this discovery, and Merck spokesperson Janet Skidmore said it could help company research on Hepatitis B and a possible cervical cancer vaccine called Gardasil.
After a year of a partnership between GlycoFi and Merck and a month of negotiations between Merck's CEO and outside lawyers, the acquisition offer came on April 28, according to GlycoFi Senior Vice President for Business Development Jim Posada.
"It's a lot of money involved; they're taking it very seriously," Posada said. "Strategically, it's an important part of a biologics platform."
Merck, which last bought another company in 2004, is also purchasing the even smaller California company Abnaxis for $80 million as part of what Skidmore called a "targeted acquisition strategy." For GlycoFi's approximate 55 employees, excitement is evident for Merck's assurance that their jobs will remain for at least a few years to come, accompanied by anxiety regarding potential changes.
"It's very interesting and I think we will have to wait and see over time," said employee Gavin Barnard Th'04, who worked in Gerngross' lab here and now does fermentation of the yeast cells.
"One thing is, they could come in too heavy-handed and ruin the culture," Gerngross said. "This is something that can be easily screwed up."
Dartmouth has a small stake in the company and will sell off its shares. The profits will go to Thayer and be available for general spending, according to General Counsel Robert Donin.
Gerngross would not make public what financial profit he and his colleagues will see, simply saying that everyone will fare well from the deal. He plans to work for one year as a consultant on the transition and to continue teaching.
Dartmouth hopes to attract other businesses like GlycoFi by building the Dartmouth Regional Technology Center near GlycoFi's current offices at the Centerra Resource Park. About six companies have signed up to take offices in the building, which is funded partly by the federal and state governments and is scheduled to be completed by July, according to Gregg Fairbanks of the Dartmouth Entrepreneurial Network.
"You can actually do something with the life sciences up here in the backwoods of New Hampshire and not in Cambridge or South San Francisco or San Diego," Hutchinson said.
