Completion of US $44.9 Million Sale of Critical Care Division to IDEXX
ROSWELL, Georgia, February 1, 2007—Osmetech, the fast-developing international molecular diagnostics business, today announces that, further to the agreement dated 15 December 2006, the sale of its Critical Care Division to IDEXX Laboratories, Inc. (“IDEXX”) for $44.9m in cash before costs was completed on 31 January 2007.
The Critical Care Division was acquired from Roche Diagnostics Inc. in 2003, for US$2.7 million, before costs of £0.1 million, and this sale represents a substantial return for the Company on its original investment and demonstrates the value of the Directors’ ability to acquire and develop businesses as a successful means of creating significant value for Shareholders.
The assets of the business and its workforce have now transferred to IDEXX. The Board of Osmetech would like to thank Alfred Marek and all the Division’s employees in helping to build a very successful business during Osmetech’s period of ownership and wish them every success in the future.
With the proceeds from the sale, together with existing resources (cash balances as at 31 December 2006 were £7,089,000), the Board plans to accelerate the expansion and development of the Molecular Diagnostic Division. As part of this strategy, inter alia, the Board intends to:
- Progress with the development and commercialization of the Group’s existing product pipeline including the second generation eSensor™ instrument.
- Secure licensing agreements that will add assay content, and therefore revenues, for the Group’s instrument platforms.
- Continue to explore selective acquisition opportunities that will strengthen and expand the Group’s presence in the molecular diagnostics market.
- Negotiate licensing agreements and enter into strategic partnerships in non-healthcare markets, thereby leveraging the strength of the Group’s instrument platforms, technology and intellectual property.
James White, Chief Executive, Osmetech plc, said:
“We are delighted with the substantial return we have made on our original investment in the Critical Care Division. Following its sale, we can now focus on accelerating the development of our Molecular Diagnostic Division.
“Molecular diagnostics is the fastest growing sector of the global diagnostics market. Osmetech is now well funded and in an excellent position with its two instrument platforms to capitalize on the significant opportunities to build a business with considerable value with the prospects of high margins. Our FDA-approved test for cystic fibrosis has been launched, and good progress is being made with our CYP 450 test, which targets the personalized medicine market, a growth area for molecular diagnostics.”
Osmetech plc +44 (0) 207 849 6027
James White, Chief Executive Officer
David Sandilands, Chief Financial Officer
Hoare Govett Limited +44 (0) 207 678 8000
Andrew Foster/Bertie Whitehead (Corporate Broking)
Justin Jones (Corporate Finance)
Madano partnership +44 (0) 207 593 4000
Matthew Moth/Mark Way