LAB International Acquires Scantox
Laval, Canada (ots/PRNewswire)
- Danish Contract Research Organization Will Help Double LAB Research's Revenues
LAB International Inc. (TSX: LAB, Frankfurt: LD9.F, XETRA:
LD9.DE), an integrated drug development company with a focus on
inhalation delivery, today announced it has acquired all shares of
Scantox, Biologisk Laboratorium A/S (Denmark), the leading
Scandinavian, non- clinical contract research organization, for a
total cash consideration of 28 million Danish Kroner ("Dk") or
approximately CDN$6.1 million. Approximately ninety per cent (90%) of
the purchase price will be paid on closing, with the remaining
portion payable by March 31, 2006 subject to post- closing
adjustments."We are extremely pleased to welcome Scantox's organization and staff to the LAB group of companies. Scantox's total customer satisfaction philosophy, reflected through reliable, flexible and punctual service, matches perfectly with LAB's core business values," said Leigh Berryman, President of LAB Research.
"This acquisition will help us to more than double our current revenues in 2005 and expand our product offering to our existing clients," said Dr. Halvor Jaeger, CEO of LAB. "We have a proven track record for successfully integrating acquisitions and ensuring synergies are achieved. With the addition of Scantox, our services business will be large enough to position us closer to being self-reliant in funding our internal drug development programs."
LAB Research will now be operating contract research facilities in Denmark, Hungary, United States and Canada with a total capacity approaching 300,000 square feet and 375 employees.
Scantox is the principal GLP-compliant, non-clinical Contract Research Organization (CRO) in Scandinavia. Founded in 1977, Scantox employs 135 people at its state-of-the-art 75,000 sq. ft. facilities located in Denmark. Scantox' revenues will be consolidated into LAB's revenues starting at the date of acquisition. Scantox's non-audited revenues and EBITDA for the 2004 calendar year are estimated at 92 Million Dk (CDN$22 million), and 19.5 million Dk (CDN$4.2 million), respectively.
In the past twelve months ended September 30, 2004, LAB Research generated more than CDN$22 million in revenue and CDN$5.4 million in EBITDA.
About LAB International
LAB International (LAB Pharma and LAB Research) is an integrated drug development company. LAB Pharma is focused on the growing multi-billion dollar inhalation market. Its lead product, for the treatment of breakthrough cancer pain, is a fast-acting Fentanyl formulation delivered using the Company's Taifun(R) dry powder inhaler platform. Its pipeline also includes therapeutics for asthma, COPD, and growth hormone deficiencies. LAB Research is a profitable and growing contract research services division supporting its client base from state-of-the-art facilities in Canada, the US, Hungary and Denmark.
LAB's common shares trade on The Toronto Stock Exchange ("TSX")
under the symbol "LAB", on the Frankfurt Regulated Unofficial Market
under the symbol "LD9.F" and on XETRA under the symbol "LD9.DE" with
51.3 million shares outstanding.This news release contains certain forward-looking statements that reflect the current views and/or expectations of LAB International Inc. with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly.
www.labinc.ca
Contact:
For further information: www.labinc.ca; Luc Mainville, Chief
Operating
Officer, +1-(450)-973-2240 ext. 1206, Fax: +1-(450)-973-2259,
mainvillel@labinc.ca; Frédéric Dumais, Director, Communication and
Investor
Relations, +1-(450)-973-2240 ext. 1207, Fax: +1-(450)-973-2259,
dumaisf@labinc.ca; James Smith, Investor Relations, +1-(416)-815-0700
ext.
229, Fax: +1-(416)-815-0080, jsmith@equicomgroup.com