MDS Proteomics Announces New Business Plan and Financial Reorganization
01 Giugno 2004 - 11:39PM
PR Newswire (US)
MDS Proteomics Announces New Business Plan and Financial
Reorganization TORONTO, June 1 /PRNewswire-FirstCall/ -- MDS
Proteomics today announced a change to its business and financial
strategy. Over the last year, the company has been evaluating
commercialization strategies to leverage its assets, knowledge,
experience and technology. As a result, the company is changing its
business model to the provision of services to the rapidly growing
fields of biomarker identification, lead optimization and protein
analysis. The company intends to substantially discontinue its
activity in drug discovery and development. Biomarker Discovery and
Assay Development ----------------------------------------- MDS
Proteomics is collaborating with MDS Pharma Services to provide a
unique end-to-end biomarkers offering for biopharmaceutical
customers. MDS Proteomics will discover protein biomarkers and
provide the technology transfer of these markers to MDS Pharma
Services who will develop validated assays for use in their
clients' pre-clinical trials. Biomarkers are becoming important
elements in drug discovery and pre- clinical and clinical
development because of increasing financial pressures to improve
the economics and productivity of bringing new drugs to market.
Biomarkers can provide objective, measurable and reliable
indicators of drug action and disease progression and assist
pharmaceutical companies in selecting the best drug candidates.
Industry estimates are that the biomarker products and services
industry will grow from US$500 million in 2003 to US$2.9 billion in
2008. "We intend to devote substantial resources to biomarker
identification and assay development using our expertise,
leading-edge technologies and excellent client relationships," said
Anil Amlani, Executive Vice President & Chief Financial
Officer, MDS Proteomics. "We will provide full protein biomarkers
discovery services that our partner MDS Pharma Services will apply
in a clinical setting." MDS Proteomics utilizes a gel-free mass
spectrometry based differential analysis platform that has been in
operation for over a year. This platform combines proprietary
sample processing, state of the art mass spectrometry and
sophisticated analytical software to discover biomarkers. The
company has utilized this technology successfully to discover
biomarkers related to the early stages of drug induced kidney
damage. Lead Optimization ----------------- MDS Proteomics' OptiMol
business unit will continue to offer lead optimization services
through its "hybrid" platform that combines advanced computer-aided
molecular modeling with its proprietary Leadfinder(TM) small
molecule-screening platform. This eliminates the need for assay
development and improves the turnaround significantly. OptiMol is
dedicated to providing high value early stage drug development
capabilities to its pharmaceutical and biotech partners. OptiMol's
platform capabilities and multi-disciplined team can quickly add
value to our partners' protein targets and small molecule leads,
advancing them efficiently up the drug development value chain. Dr.
Neil Reid will continue to lead OptiMol, as its Senior Vice
President. Proteomics Analytical Services
------------------------------ MDS Proteomics has launched a
proteomics analytical services unit to provide proteomics services
to biotechnology, pharmaceutical and academic clients. This new
unit, Protana Analytical Services, will focus on identifying and
profiling proteins in biological samples. Protana's high throughput
capability incorporates fully automated gel band cutting, data
acquisition and bioinformatics. Protana has considerable experience
in sample processing, offering a best-in-class service capability
that provides rapid turnaround, mass spectrometry-based protein
identification and characterization, with capacity for over 150,000
gel bands per year. Dr. Cemal Kuyas has joined MDS Proteomics as
Senior Vice President, Protana. Dr. Kuyas is a protein chemist with
over 20 years of experience providing premium quality services to
pharmaceutical clients in Europe and North America. Financial Plan
-------------- The change in the company's business model has
created the need to restructure the obligations and capital
structure of the company. The highlights of the proposed plan
include: - Effective merger of the company and Optimal, which is
50% owned by the company; - Conversion of all existing funded debt
into equity in the reorganized company; - In exchange for CDN $15
million, MDS Inc. will gain access to tax assets and ongoing
technology access agreement; - Reorganizing the company to reduce
the quarterly net cash burn rate to between CDN$2.5-$3.0 million.
Following the transaction, the reorganized company will employ
approximately 72 individuals at its offices in Toronto; and -
Implementation of the new business model to achieve cash flow
breakeven operations by the end of 2005. The company will effect
the proposed reorganization through a Plan of Arrangement pursuant
to the Companies' Creditors Arrangement Act. On finalization of the
proposed Plan, which has the support of the company's major
creditors and shareholders, it will be filed with the Ontario
Superior Court, and full implementation is expected by mid-July
2004. About MDS Proteomics MDS Proteomics offers an integrated
platform of superior and ultra- sensitive mass-spectrometry
proteomics technologies - protein identification, protein
interaction mapping, differential analysis, phosphoprofiling and
chemical proteomics - that can be applied across the entire drug
discovery and development process. MDS Proteomics' combination of
world-class experts and sophisticated technology will ultimately
provide the global medical community - and patients throughout the
world - with leading-edge solutions for the diagnosis and treatment
of disease. For more information on MDS Proteomics, visit the
company's website at http://www.mdsp.com/. About MDS Inc. At MDS
Inc., our more than 10,000 highly skilled people provide enabling
products and services for the development of drugs and the
diagnosis and management of disease. We focus on helping to
discover new drugs, assisting doctors to diagnose and treat
patients and preventing the spread of disease. Find out more about
MDS Inc. at http://www.mdsintl.com/ or by calling 1-888-MDS-7222,
24 hours a day. This document contains forward-looking statements.
Some forward looking statements may be identified by words like
"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.
The Company's actual results could differ materially from those
currently anticipated due to a number of factors, including, but
not limited to, successful integration of structural changes,
including restructuring plans, acquisitions, technical or
manufacturing or distribution issues, the competitive environment
for the Company's products, the degree of market penetration of the
Company's products, and other factors set forth in reports and
other documents filed by the Company with Canadian and US
securities regulatory authorities from time to time. DATASOURCE:
MDS Proteomics Inc. CONTACT: Anil Amlani, Executive Vice President
& Chief Financial Officer, MDS Proteomics Inc., (416) 646-6351
or
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