Healthcare Industry News: Inverness Medical Innovations
News Release - April 23, 2007
Inverness Medical Innovations to Acquire Indian Distributor Spectral DiagnosticsWALTHAM, Mass., April 23 (HSMN NewsFeed) -- Inverness Medical Innovations, Inc. (Amex: IMA ), a leading manufacturer and marketer of rapid diagnostic products for the consumer and professional markets, today announced that it has entered into an agreement to acquire Spectral Diagnostics Private Limited, a privately held distributor of professional diagnostics products to the Indian marketplace, and its affiliate Source Diagnostics (India) Private Limited, an assembly and packaging operation, for an initial payment of $4 million comprising a combination of cash and Inverness stock. In the event that certain post-close revenue and profitability targets are achieved an additional purchase price payment will be paid one year from the closing. The transaction is expected to close in approximately 60 days, upon receipt of certain regulatory approvals in India.
The acquisition of Spectral and Source, located in New Delhi and Shimla, respectively, will provide Inverness with an established distribution network and packaging operation in India for its professional diagnostic products. The acquisition is consistent with Inverness' efforts to continue to improve margins by bringing distribution in-house and to expand its international footprint.
India represents one of the biggest opportunities for rapid testing for blood borne pathogens such as HIV, Hepatitis, Malaria, and Dengue fever. Additionally, it is estimated that 4.5 million people in India have Tuberculosis and that India has 1.8 million new cases every year. Commenting on the deal, Ron Zwanziger, Chairman and CEO of Inverness said, "We are very pleased to add Spectral and Source to the Inverness family of companies, and see this acquisition as an exciting step towards establishing direct sales into the growing Indian market."
Sulekha Chawla, President of Spectral and Source, said "The combination of Inverness' product line and innovative research capabilities with Spectral's growing distribution capabilities in India is an excellent match. We believe that the opportunities created by this acquisition are enormous."
For more information about Inverness Medical Innovations, please visit our website at http://www.invernessmedical.com .
Inverness Medical Innovations is a leading global developer of advanced diagnostic devices and is presently exploring new opportunities for its proprietary electrochemical and other technologies in a variety of professional diagnostic and consumer-oriented applications including immuno- diagnostics with a focus on women's health, cardiology and infectious disease. The Company's new product development efforts, as well as its position as a leading supplier of consumer pregnancy and fertility/ovulation tests and rapid point-of-care diagnostics, are supported by the strength of its intellectual property portfolio. Inverness is headquartered in Waltham, Massachusetts.
This press release contains forward-looking statements within the meaning of the federal securities laws, including statements regarding possible margin improvements. Actual results may differ materially due to numerous factors, including without limitation, the ability of the parties to obtain regulatory approval and to consummate the agreed acquisition; the operational integration associated with the acquisition of Spectral, including unanticipated losses of suppliers, customers, employees or other business partners; future demand for and costs of the Company's products which will impact the margins that the Company will realize on future product sales; and the risks and uncertainties described in the Company's periodic reports filed with the Securities and Exchange Commission under the federal securities laws, including the Company's Annual Report on Form 10-K for the year ended December 31, 2006, as amended. The Company undertakes no obligation to update any forward-looking statements.
Source: Inverness Medical Innovations
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