MDS Announces Strategy to Focus MDS Pharma Services on Early Stage Operations - Discovery Through Phase IIa
01 Giugno 2009 - 1:00PM
PR Newswire (US)
Company to Divest Late Stage Operations, Signs Agreement to Sell
Phase II-IV Operations to INC Research TORONTO, June 1
/PRNewswire-FirstCall/ -- MDS Inc. (TSX: MDS; NYSE: MDZ), a leading
provider of products and services to the global life sciences
markets, today announced that it will strategically focus its MDS
Pharma Services business on the delivery of Early Stage (Discovery
through Phase IIa) contract research organization (CRO) services.
The Company intends to sell its MDS Pharma Services Late Stage
operations, which are comprised of Phase II-IV operations and
Central Labs. MDS has signed an agreement to sell its Phase II-IV
operations to INC Research, Inc., a leading global provider of CRO
services, for $50 million, including certain transition services,
and subject to customary post closing contingencies and
adjustments. A suitable buyer is being sought for Central Labs.
These decisions are a result of MDS's ongoing strategic review
process. They will support the Company's efforts to advance its
leadership position in the delivery of Early Stage CRO services,
where it has a top-three market position. "We are taking action to
enhance shareholder value by focusing our business portfolio on
areas where we believe we can expand market leadership," said
Stephen P. DeFalco, President and Chief Executive Officer, MDS Inc.
"While our investments in MDS Pharma Services' Late Stage have
significantly strengthened the business, further success requires
greater scale. By divesting our Phase II-IV operations, we will be
better able to take advantage of our core competencies in Early
Stage. We believe this will prove beneficial to the success of the
business, to customers and to shareholders." Phase II-IV Under the
terms of the agreement, INC Research will acquire MDS Pharma
Services' Phase II-IV operations, which includes approximately 800
employees who conduct large, multi-site clinical trials in more
than 25 countries. "We extend a warm welcome to the clients and
employees of MDS Pharma Services Phase II-IV business," said Jim
Ogle, Chief Executive Officer, INC Research. "This acquisition
reinforces our long-standing commitment at INC Research to
continuously improve service in areas most important to our
customers - therapeutic expertise, talent and experience, and a
broader geographic footprint." The transaction is expected to close
in the third quarter of the MDS 2009 fiscal year, and is subject to
customary approvals and closing conditions. In addition, the sale
of the Company's Phase II to IV operations in France, are subject
to review and consultation with the applicable Works Council in
accordance with French labor laws. Central Labs As a result of its
strategic focus on Early Stage CRO services, the Company intends to
sell MDS Pharma Services' Central Labs. Central Labs conduct
analysis of samples from clinical trials to monitor safety and to
test for physiological impact. This operation has more than 600
employees at six sites in Europe, North America and Asia. Its
proprietary, industry-leading Apollo study-management system offers
clients real-time access to study data from around the world. As
MDS exits Late Stage operations, the Company anticipates a smooth
transition for clients and remains focused on meeting client needs.
More Information about Today's Announcement Additional background
materials pertaining to today's announcement can be found on MDS
Inc.'s Website at
http://www.mdsinc.com/for_media/electronic_media_kit.asp Caution
Concerning Forward-Looking Statements This document contains
forward-looking statements. Some forward-looking statements may be
identified by words like "believes", "expects", "anticipates",
"plans", "intends", "indicates" or similar expressions. The
statements are not a guarantee of future performance and are
inherently subject to risks and uncertainties. MDS's actual results
could differ materially from those expressed in the forward-looking
statements due to these risks and a number of other factors,
including, but not limited to, successful completion of the
aforementioned divestitures, successful implementation of
structural changes, including restructuring plans and acquisitions,
technical or manufacturing or distribution issues, the competitive
environment for MDS's products and services, the degree of market
penetration of its products and services, the ability to secure a
reliable supply of raw materials, the impact of our clients'
exercising rights to delay or cancel certain contracts, the
strength of the global economy, the stability of global equity
markets, the availability and cost of financing, the impact of the
movement of the U.S. dollar relative to other currencies,
particularly the Canadian dollar and the euro, uncertainties
associated with critical accounting assumptions and estimates, and
other factors set forth in reports and other documents filed by MDS
with Canadian and U.S. securities regulatory authorities from time
to time, including MDS's quarterly and annual MD&A, Annual
Information Form, and Annual Report on Form 40-F for the fiscal
year ended October 31, 2008 filed with the U.S. Securities &
Exchange Commission. About MDS MDS Inc. (TSX: MDS; NYSE: MDZ) is a
global life sciences company that provides market-leading products
and services that our customers need for the development of drugs
and diagnosis and treatment of disease. We are a leading global
provider of pharmaceutical contract research, medical isotopes for
molecular imaging, radiotherapeutics, and analytical instruments.
MDS has more than 5,000 highly skilled people in 29 countries. Find
out more at http://www.mdsinc.com/ or by calling 1-888-MDS-7222, 24
hours a day. DATASOURCE: MDS Inc. CONTACT: MEDIA: Janet Ko, (905)
267-4226, ; INVESTORS: Kim Lee, (905) 267-4230,
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