LOS ANGELES, April 24 /PRNewswire/ -- CYNTEGRA Inc., the developer of a revolutionary veterinary pathogen diagnostic system capable of the simultaneous detection of dozens of disease agents in animals, prevailed earlier this month in a motion brought by IDEXX Laboratories to prevent discovery and terminate the case prematurely. CYNTEGRA successfully argued for a continuance until after discovery.
CYNTEGRA filed a lawsuit against Idexx Laboratories in June 2006 seeking damages exceeding $700 million dollars, including treble and punitive damages, alleging that IDEXX's enforcement of exclusive dealing agreements with the largest veterinary products distributors resulted in the cancellation of millions of dollars in orders for CYNTEGRA, in violation of federal antitrust laws and California state unfair competition laws (US District Court, Central District of California, Case No. CV06-4170 (PSG)). Earlier on in the lawsuit, IDEXX also sought to dismiss several of CYNTEGRA's claims but was unsuccessful. Discovery has commenced, and among the industry participants from which CYNTEGRA will be seeking information are senior management of major veterinary products distributors with which IDEXX has exclusive distribution arrangements, including MWI, Butler, Columbus Serum Company, and Medco, as well as current and former employees of IDEXX.
Simon Brodie, CEO for CYNTEGRA, states, "We are pleased with the latest turn of events. This is the second unsuccessful attempt by IDEXX to deny CYNTEGRA its right to a jury trial. I believe that IDEXX was seeking summary judgment to prevent the discovery process, to which CYNTEGRA is entitled, because IDEXX does not want CYNTEGRA or the public, including IDEXX shareholders, to have access to information that may reveal 'the smoking gun,' and will help support CYNTEGRA's claims. Since the lawsuit began, CYNTEGRA has learned that IDEXX continues to prevent distributors from selling the products of other companies, despite the fact that IDEXX sells an increasing percentage of its own products directly to veterinarians. We believe that IDEXX maintains its exclusive arrangements with distributors to prevent other companies from access to these distributors and maintain control over what veterinary products enter the market. The Federal District Court seems to agree."
Mr. Brodie continues, "I greatly appreciate the increasing number of people in the veterinary products market that have contacted the company to discuss their experiences with IDEXX and its distribution policies. They have provided valuable evidence that further supports our case. Our diagnostic product received over a thousand expressions of interest from veterinary clinics in just a few weeks and many are upset at Idexx's tactics. It's my opinion that as a result of the cancellation of millions of dollars of potential revenue by the veterinary distributors held hostage by IDEXX's distribution contracts, veterinarians and their customers nationwide have been harmed by lack of access to cutting edge technology to help diagnose life threatening diseases in their pets. Who knows how many new and improved products are being blocked from the market by IDEXX's practices? It is even possible that IDEXX's diagnostic products perform sub optimally, facts that may be uncovered in the discovery sought by CYNTEGRA. We believe that because of lack of competition, IDEXX can continue to sell veterinary products that may be outperformed by the products of other companies, such as CYNTEGRA, that cannot reach the veterinary market."
CYNTEGRA Inc.CONTACT: SaraLynn Mandel, Attorney at Law, Mandel and Adriano,+1-626-395-7801, for CYNTEGRA Inc.
