LAVAL, QC, Oct. 26 /PRNewswire-FirstCall/ - LAB International Inc. ("LAB"), a drug development company focused on developing therapies for the inhalation and pain markets, today announced it has signed a non-binding letter of intent ("LOI") to acquire all of the outstanding membership interests of PharmaForm L.L.C., a privately held company headquartered in Austin, Texas. The closing of this transaction is subject to the completion of satisfactory due diligence, the negotiation of a definitive purchase and sale agreement, regulatory and Board approval. The closing of the transaction is anticipated to take place on or before December 1, 2006.
Founded in 1996, PharmaForm L.L.C. is a fast growing, profitable specialty pharmaceutical and drug development company. It owns proprietary platform technologies, including alternate delivery mechanisms for narcotics and products entering clinical trial stages. It also operates a DEA and FDA registered Pharma contract manufacturing business. The PharmaForm management team has over 80 years of combined drug development experience.
Consideration for the acquisition is U.S $7.5 million payable in cash and $4.375 million in LAB shares at closing. PharmaForm shareholders are eligible for additional payments in LAB shares upon completion of certain milestones related to pipeline products in PharmaForm's drug development programs reaching specific clinical trial stages.
"The acquisition of PharmaForm is central to our corporate strategy of becoming an integrated specialty Pharma and pain management Company. It will add complementary platforms and products to our pipeline which will soon be entering clinical trial stages. It will also ensure manufacturing capabilities of Fentanyl TAIFUN(R) in the U.S., provide us the flexibility to streamline our LAB Pharma unit by leveraging operational synergies and greatly enhance our management and scientific expertise." commented Dr. Halvor Jaeger, CEO of LAB International.
"We are extremely pleased to become part of the LAB International family. The addition of our high potential drug and platform candidates, drug development and drug delivery expertise and manufacturing capabilities to LAB International's clinical and inhalation product expertise, will quickly position the newly formed entity as a market leader in specialty pharma. The integrated capabilities of LAB International and PharmaForm will facilitate acceleration of development and commercialization of our drug product candidates." added Dr. Robert O. (Bill) Williams III, President of PharmaForm L.L.C.
Conference call information
LAB will host a conference call to discuss the acquisition today at 10:00 am (Eastern). The call may be accessed by dialing 416-644-3425 or 1-800-814-4857 and will also be webcasted on the Investor Relations section of the Company's website at www.labinc.ca. A replay of the call will be available starting October 26, 2006 at 12:00 pm until November 2, 2006 at 11:59 pm, and may be accessed at 416-640-1917 or 1-877-289-8525, with the pass code 21208053 (pound key)
Headquartered in Austin, Texas, PharmaForm is a leading specialty contract service provider offering a portfolio of innovative technologies in drug product development, manufacturing and analytical testing. Through its diverse offerings, PharmaForm delivers drug product solutions that help clients reduce development costs and accelerate time-to-market. PharmaForm is currently expanding its drug product pipeline based upon its expertise in hot-melt extrusion and solids processing.
About LAB International
LAB is a drug development company focused on the growing multi-billion dollar inhalation market. Its lead product, for the treatment of breakthrough cancer pain, is a fast-acting Fentanyl formulation delivered using the Company's TAIFUN(R) dry powder inhaler platform. Its pipeline also includes therapeutics for asthma, COPD, and growth hormone deficiencies.
LAB's common shares trade on The Toronto Stock Exchange ("TSX") under the symbol "LAB", on the Frankfurt Regulated Unofficial Market under the symbol "LD9.F" and on XETRA under the symbol "LD9.DE" with 73.2 million shares outstanding.
This news release contains certain forward-looking statements that reflect the current views and/or expectations of LAB International Inc. with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly.
LAB INTERNATIONAL INC.