Sixty new beds at Nebraska clinic will meet growing client demand and enhance leadership position in Phase I research PHILADELPHIA, Aug. 11 /PRNewswire-FirstCall/ -- MDS Pharma Services, a leading provider of innovative drug discovery and development solutions, is proceeding with a 30 per cent increase in capacity at its Early Clinical Research (ECR) site in Lincoln, NE to satisfy growing client demand. The expansion at the Lincoln facility will strengthen MDS Pharma Services' position as one of the largest providers of Phase I research services, with more than 1,000 beds at seven facilities in North America and Europe. The current 172-bed Lincoln facility is being renovated to accommodate 60 new beds for volunteers participating in studies that assess biomarkers. When completed, the additional capacity will be fully dedicated to the ECR studies of a MDS Pharma Services client for the first three years. Scheduled to be completed in the first quarter of 2006, the $1.2 million renovation is expected to add up to $6 million in annual revenues. "The additional space will allow MDS Pharma Services to play an even larger role in the assessment of biomarkers, which will in turn help all of our clients create better outcomes in the treatment of diseases," said Jerry Merritt, Senior Vice-President, ECR. "Among other things, biomarkers can be used to predict which patient populations are more likely to respond to a particular drug therapy and to avoid specific adverse events." The co-location of the new clinical capacity with the Lincoln site's bioanalytical laboratory will give clients convenient access to both types of research services. Bioanalytical laboratories outfitted with 13 mass spectrometers comprise more than 25,000 square feet at the secure site, and 45,000 square feet are devoted to ECR services. With the 60-bed expansion, the ECR capacity will grow to 60,000 square feet. In addition to full clinical and bioanalytical services, the 120 experienced researchers and technicians at the Lincoln site also offer data biostatistics and PK data management. "The additional clinical capacity at Lincoln reflects the confidence our clients have shown in our ability to meet their growing need for quality ECR services," said Michael Butler, group Vice-President, ECR & Bioanalysis. "This confidence has helped our ECR business grow faster than the overall Phase I market for the last three years." In addition to Lincoln, MDS Pharma Services' North American ECR facilities are located in Montreal, QC; Phoenix, AZ; New Orleans, LA; and Neptune, NJ. Its European sites are in Hamburg and Belfast. A previously announced expansion underway at the New Orleans clinic will add 52 patient beds to the current 80 there, and will be completed in early 2006. About MDS Pharma Services MDS Pharma Services offers a full spectrum of resources to meet the drug discovery and development needs of the pharmaceutical and biotechnology industries. With numerous facilities strategically located around the world, the company applies advanced scientific and technological expertise to each stage of the drug discovery and development process - Early Stage: lead optimization, pre-IND research, pharmaceutical and biopharmaceutical development, early clinical research (bioequivalence, phases I-IIa) and bioanalysis; and Late Stage: global clinical development (phases IIb-IV) and central lab. For more information, visit MDS Pharma Services' Web site at http://www.mdsps.com/. MDS Pharma Services is an integral part of MDS Inc. (TSX: MDS; NYSE: MDZ). MDS Inc. has more than 9,000 highly skilled people in 27 countries providing a diverse range of superior products and services to increase its customers' speed, precision and productivity in the drug development and disease diagnosis processes. MDS Inc. is a global, values-driven health and life sciences company, recognized for its reliability and collaborative relationships as it helps create better outcomes in the treatment of disease. Find out more at http://www.mdsinc.com/ or by calling 1-888-MDS-7222, 24 hours a day. DATASOURCE: MDS Inc. CONTACT: Liz Parlett, (856) 988-6560, ext: 18, ; Michael Gross, (856) 988-6560, ext: 16,

Copyright