Omnyx CFO Andy Chomos said regulatory uncertainty represented a “strong contributor” to leave independent operations and close the company’s Homestead, Penn., headquarters. GE Healthcare said in statement to Pittsburgh Post-Gazette the decision reflects a “variable global demand” for Omnyx’s technology, which allows physicians to examine digital tissue images.
Mr. Chomos said Omnyx has 85 employees, and the closing of its headquarters will result in “substantial downsizing,” though the number of affected employees was not specified.
UPMC and GE Healthcare formed Omnyx in 2008, with each company owning 50 percent of the organization. UPMC and GE Healthcare agreed to contribute a combined $40 million to Omnyx. While Omnyx was estimated to control 25 percent of a projected $2 billion market for its pathology technology, the market did not develop as quickly as anticipated, according to the report.
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