Agilent Technologies Inc. (NYSE: A) is shutting down Resolution Bioscience, a Kirkland-based subsidiary that makes diagnostic tests for cancer.
Agilent, a lab equipment and services company headquartered in Northern California, announced the decision in its third-quarter earnings call earlier this month. A Worker Adjustment and Retraining Notification filed in Washington on Monday revealed Agilent is laying off 64 workers starting at the end of October as part of the move.
"The market for kitted (next generation sequencing)-based companion diagnostics has not developed as expected," an Agilent spokesperson said in a statement to the Business Journal. "We are grateful for the contributions of the Resolution Bioscience team and are working to ensure all team members affected have a smooth transition during this process."
The spokesperson added that Agilent is still supporting oncology efforts through research tools and diagnostic test development.
Agilent acquired Resolution for $550 million cash in 2021 and an additional up to $145 million for hitting certain milestones. According to Agilent, Resolution generated about $35 million in revenue in 2020.
Resolution's diagnostic platform, aimed at both biotechs and clinics, detects different mutations that cause cancer. At the time of the acquisition announcement, Agilent said Resolution "provides the company with innovative technology to further serve the needs of the fast-growing precision medicine market."
In the earnings call this month, however, Agilent CEO Mike McMullen said the market didn't develop as expected, and Agilent doesn't see a way for Resolution to become profitable.
Agilent, founded in 1999, provides products for cell analysis, mass spectrometry and cloning, among others. The company also offers lab consulting services and software. Agilent had about 18,100 employees as of October 2022.
Agilent generated $1.67 billion in revenue in its most recent quarter, down 2.7% year over year. On the earnings call, McMullen said Agilent's business in China was the main reason for the revenue decline.
"The economy in China continued to weaken during the quarter, translating into a more challenging market environment than we had anticipated," McMullen said.
