Applied DNA Sciences has announced a strategic restructuring to concentrate exclusively on synthetic DNA manufacturing through its subsidiary LineaRx, implementing a 27% workforce reduction and ceasing operations at Applied DNA Clinical Labs effective June 27, 2025. The biotechnology company is positioning itself to capitalize on growing demand for enzymatically produced DNA in the expanding genetic medicines market.
Strategic Focus on LineaRx Platforms
The restructuring centers on advancing LineaRx's proprietary LineaDNA and LineaIVT platforms, which enable enzymatic manufacture of synthetic DNA and associated enzymes used in DNA- and RNA-based therapeutics. According to Clay Shorrock, president of LineaRx, "Demand for enzymatically produced DNA is accelerating, driven by the expanding field of genetic medicines. Our LineaDNA and LineaIVT platforms are well-positioned to meet this need."
The LineaDNA platform represents a proprietary, cell-free DNA production system that leverages Applied DNA's expertise in large-scale PCR technology. Unlike conventional plasmid-based DNA production methods, the platform produces high-fidelity DNA free of adventitious sequences that is rapidly scalable and easily amenable to chemical modification. The system can generate DNA from 100 base pairs to 20 kilobases in quantities from milligrams to grams under research use only (RUO), good laboratory practice (GLP), and good manufacturing practice (GMP) quality grades.
Integrated mRNA Production Solution
The LineaIVT platform offers a streamlined approach to mRNA production by integrating DNA in vitro transcription (IVT) template manufacturing from the LineaDNA platform with the company's proprietary LineaRNAP enzyme. This integrated approach bypasses plasmid DNA as starting material, prevents or reduces double-stranded RNA contamination, and simplifies mRNA production workflows.
Financial Impact and Operational Efficiency
The workforce reduction represents a projected 23% reduction in annual payroll costs, partially offset by approximately $300,000 in one-time charges for separation benefits. Since initiating strategic restructuring in December 2024, Applied DNA has exited non-core operations and reduced headcount by 39%, achieving a projected 31% reduction in annual payroll expenses compared to fiscal year 2024.
The company exited its DNA Tagging and Security Products and Services business segment in February 2025 and implemented an additional 20% workforce reduction primarily related to employees in that segment. As of May 31, 2025, Applied DNA maintained approximately $4.8 million in cash and cash equivalents.
Market Positioning and Growth Strategy
Judy Murrah, chairperson, president, and CEO, stated that the strategic decisions "enable us to set business priorities, funds, and management attention behind LineaRx as our highest-conviction growth opportunity, while also positioning the company for greater operational efficiency, sharper execution, and clearer industry and investment theses."
The restructuring aims to enhance LineaRx's platform capabilities while scaling commercial adoption, expand service offerings, and pursue strategic partnerships. Applied DNA Sciences, with over 20 years of experience in developing PCR-based applications for DNA production, is positioning LineaRx to serve the next generation of nucleic acid-based therapies through its majority-owned subsidiary structure.
