Applied DNA Sciences Acquires Vandalia’s Assets

Applied DNA Sciences, Inc. (Twitter: @APDN), a provider of DNA-based anti-counterfeiting technology, product genotyping services and product authentication solutions, announced that it has acquired the assets of privately held Vandalia Research, Inc. for $1.5 million in cash.

Vandalia's core technology and intellectual property portfolio, allow for the large-scale production of specific DNA sequences using polymerase chain reaction (PCR). PCR can amplify a few copies of a piece of DNA, generating millions to billions of copies without the impurities of fermentation.

Vandalia's Triathlon™ PCR systems are self-contained and modular, can work together in mass production or can be used individually throughout the world, offering the advantage of delivering DNA locally and securely. The enclosed design should facilitate compliance with drug manufacturing guidelines in our quest to DNA mark individual doses as a major initiative in the war against counterfeit drugs. "Expanding our manufacturing capacity through the acquisition of Vandalia's Triathlon PCR machines is opportune as we move toward converting pilot projects to commercial deployment, and creates, we believe, the world's largest manufacturing capacity of DNA in bulk using PCR," said Dr. James Hayward, President and CEO of APDN. "Self-contained production, paired with our On-Site™ DNA Authentication Program that can be done with simple training, opens the opportunity for rapid deployment of DNA marking in response to the anti-counterfeiting needs of the military, border protection, law enforcement agencies and supply chains."

The acquisition provides APDN with established supply relationships across key companies in the biotechnology, pharmaceutical and diagnostic markets where Vandalia DNA is already used as a business-critical therapeutic, diagnostic and reagent and provides the company the opportunity to cross-sell its DNA-based supply chain security solutions. There will be no lapse in DNA production as we fulfil Vandalia's current backlog and expected orders through the remainder of the current quarter and beyond.

A new capacity for APDN will be the ability to manufacture longer DNA sequences valuable in gene therapy, DNA vaccines and diagnostics. These types of DNA are distinct from APDN's security markers and represent a new entry into medical markets, where management believes there are ample opportunities for APDN's broader platform.

Derek Gregg, former CEO of Vandalia and co-inventor of its Triathlon platform, will join APDN as a consultant focused on the sale of DNA to the biotechnology and drug development industry. The company intends to move the physical assets of Vandalia to its headquarters in Long Island before the end of 2015.

Dr. Hayward continued, "We are in the midst of a coordinated effort to use SigNature DNA to bring supply chain security to pharmaceutics and foods and, as part of this, it is essential that we immediately begin the process of becoming compliant with cGMP (Current Good Manufacturing Practice) guidelines so that we may improve these supply chains just as we have in cotton. We believe that Vandalia's Triathlon can help us to expedite this process. We look forward to working with our new colleagues from Vandalia, creating demand for DNA and setting new records for its production."


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