Certain Drugs-of-Abuse Products Already in Production, Other Acquired
Products to Transition
WALTHAM, Mass., May 18 /PRNewswire-FirstCall/ -- Inverness Medical
Innovations, Inc. (Amex: IMA) announced today that it has acquired a
newly-constructed manufacturing facility in Hangzhou, China, as part of its
acquisition of ACON Laboratories' business of researching, developing,
manufacturing, marketing and selling lateral flow immunoassay products in
the United States, Canada, Western Europe, Israel, Australia, Japan and New
Zealand. Inverness paid ACON approximately $20 million, including 417,446
shares of Inverness common stock to acquire the new facility. The aggregate
purchase price for the acquired business, including the manufacturing
facility, is expected to be approximately $175 million based upon a
multiple of revenue and pre-tax profits of the acquired business. The
remaining payments under the agreement with ACON, which are expected to be
approximately $80 million, are contingent upon completion of certain
milestones related to achievement of functional manufacturing operations in
certain territories and regulatory clearance in Spain and Portugal. $20.0
million of the remaining payments will be made through the issuance of our
common stock, with the balance payable in cash.
The sale of the new manufacturing facility was triggered when the
parties agreed that the facility was fully functional with respect to the
first substantial product and the facility is now producing several of the
drugs-of-abuse testing products acquired from ACON. The remaining products
acquired from ACON are expected to be transitioned to the new facility
during the remainder of 2006.
ACON Laboratories retains its existing manufacturing facility, also in
Hangzhou, China.
Inverness Medical Innovations is a leading global developer of advanced
diagnostic devices and is presently exploring new opportunities for its
proprietary electrochemical and other technologies in a variety of
professional diagnostic and consumer-oriented applications including
immuno-diagnostics with a focus on women's health, cardiology and
infectious disease. The Company's new product development efforts, as well
as its position as a leading supplier of consumer pregnancy and
fertility/ovulation tests and rapid point-of-care diagnostics, are
supported by the strength of its intellectual property portfolio. Inverness
is headquartered in Waltham, Massachusetts.
For more information about Inverness Medical Innovations, please visit
our website at http://www.invernessmedical.com.
This press release may contain forward-looking statements within the
meaning of the federal securities laws. These statements reflect Inverness'
current views with respect to future events and are based on management's
current assumptions and information currently available. Actual results may
differ materially due to numerous factors, including the ability of ACON to
take all actions and obtain all permits and regulatory approvals necessary
to achieve operational functionality at the new facility in a timely manner
and the risks and uncertainties described in Inverness' annual report on
Form 10-K for the period ended December 31, 2005, and other factors
identified from time to time in its periodic filings with the Securities
and Exchange Commission. Inverness undertakes no obligation to update any
forward-looking statements contained herein.
Contact:
Doug Guarino, Director of Corporate Relations
781 647 3900
SOURCE Inverness Medical Innovations, Inc.
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Related links:
http://www.invernessmedical.com/
CONTACT:
Doug Guarino, Director of Corporate Relations
of Inverness Medical Innovations, Inc., +1-781-647-3900
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