LAVAL, QUEBEC--(Marketwire - 07/15/11) - Warnex Inc. (TSX:WNX - News) announced today that it is reorganizing the operations of its subsidiary, Warnex Analytical Services Inc. As part of this restructuring, Warnex will shut down the operations of its analytical laboratories located in Laval, Quebec, and consolidate all of its analytical services at its Neopharm Laboratories facility located in Blainville, Quebec.
"This reorganization reflects our strategy to continually improve efficiency and reduce costs in our operations. This change will provide us with estimated annualized cost savings of approximately $1 million," said Mark Busgang, President and CEO of Warnex. "We have already consolidated our validation and microbiology business to the Blainville laboratories in 2007 and 2008, respectively, and have been continuously working on improving efficiency and productivity in our analytical operations since the acquisition of the Blainville laboratory in August 2006. This reorganization will allow us to move all of the analytical operations under one roof thereby improving the efficiency of our operations as well as providing better service to our customers. This reorganization is expected to be completed by mid-September 2011."
Concurrently with this announcement, Warnex has filed the appropriate legal notices.
Warnex Analytical Services Inc. generated $10.5 million in revenue in 2010, of which 60% was generated by the operations in Blainville compared to 40% generated by the operations in Laval.
Warnex's facilities located in Blainville, Quebec, occupy 28,000 square feet and are fully cGMP compliant. Warnex's Bioanalytical Services and Medical Laboratories divisions, as well as its head office, will continue to operate at its Laval facilities.
Warnex Analytical Services provides a variety of quality control services, including chemistry, chromatography, microbiology, method development and validation, and stability studies, to the pharmaceutical, biotechnology, cosmetics, veterinary, nutraceutical and natural health product industries. Our state-of-the-art facilities are in good standing on all matters of current Good Manufacturing Practices (cGMP) and are regularly audited by Health Canada and the FDA.
Warnex (www.warnex.ca) is a life sciences company devoted to protecting public health by providing laboratory services to the pharmaceutical and healthcare sectors. Warnex Analytical Services provides pharmaceutical and biotechnology companies with a variety of quality control services, including chemistry, chromatography, microbiology, method development and validation, and stability studies. Warnex Bioanalytical Services specializes in bioequivalence and bioavailability studies for clinical trials. Warnex Medical Laboratories provides specialized testing for the healthcare industry as well as pharmaceutical and central laboratory services. Warnex PRO-DNA Services offers DNA identification tests for paternity, maternity and other family relationships, as well as for immigration and forensic testing purposes. Warnex has three facilities located in Laval and Blainville, Quebec, and Thunder Bay, Ontario.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
Certain statements contained in this news release are forward-looking and are subject to numerous risks and uncertainties, known and unknown. For information identifying known risks and uncertainties, relating to financial resources, liquidity risk, key customers and business partners, credit risk, foreign currency risk, government regulations, laboratory facilities, volatility of share price, employees, suppliers, and other important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the heading Risks and Uncertainties in Warnex's most recent Management's Discussion and Analysis, which can be found at www.sedar.com. Consequently, actual results may differ materially from the anticipated results expressed in these forward-looking statements.
Contacts:Mark J. BusgangPresident & CEOWarnex Inc.(450) 663-6724 x email@example.comCatherine SartorosCommunications SpecialistWarnex Inc.(450) 663-6724 x firstname.lastname@example.org