Tripos Assesses Strategic Options

Tripos, a provider of chemistry-based services to life sciences companies, says it has retained the financial advisory firm Seven Hills Partners to help it explore various strategic options. Those options include mergers and acquisitions, becoming a private company, and separating its drug discovery informatics and chemistry research businesses.

Tripos' announcement comes three weeks after the company disclosed that it will significantly reduce staffing at its Bude, England-based chemistry research business following the end of a four-year, $90 million program to make libraries of pharmaceutically relevant molecules for Pfizer. That contract accounted for 54% of Tripos' 2004 revenue.

Tripos CEO John P. McAlister says the firm's objective is "to identify an option that will allow us to provide continuing innovation and high-value offerings to our customers, a stimulating environment for our employees, and a solid investment for our shareholders." The latter goal may prove difficult. The firm's stock peaked at more than $30 per share in early 2002, soon after the Pfizer deal was announced, but it now trades at less than $3.50.

Splitting the informatics and research businesses would represent a change in strategy for Tripos, which in the past has touted the value of the combined offering to drug industry customers. McAlister told C&EN in 2004 that "we believe very strongly in the tight integration of informatics and experimental procedures."