The expansion of the Canadian site, the surface area of which was increased from 38,000 to 87,000 square feet, was completed on schedule and within budget. At full capacity, which will be achieved in 2007, these facilities should generate revenues of over $25 million and provide jobs for more than 200 people. Environmental systems having been validated, the Company will undertake the first studies in its new facilities as early as mid-December. Consistent with strategy, the Company has also reinforced its immunology department and set up new analytical chemistry laboratories that meets significant client needs.
"The completion of the Canadian operations will provide the Company with major benefits," said Luc Mainville, President and Chief Executive Officer of LAB Research. "We will now conduct a larger number of studies, offer our clients more services and improved scheduling, and lower our operating costs. In fact, our new facilities will enable us to consolidate our Canadian operations in a single site by the end of December and thereby benefit from savings as a result of our greater operational efficiencies.
This achievement is consistent with the Company's commitment to expand its global capacity. Within the short term, its global capacity will grow from 260,000 to 340,000 square feet (Canada - 87 000 sq.ft.; Denmark - 90,000 sq.ft.; United States - 20,000 sq.ft.; Hungary - 143,000 sq.ft.), an increase of 30%.
"LAB Research is involved in a rapidly growing industry. As we are enhancing both our capacity and our services line, we are highly confident we can carry on the organic growth we have achieved in previous years, which ranged from 20% to 30%. We also remain on the lookout for acquisition opportunities in order to expand our services offering and geographical reach," concluded the Company's President.
About LAB Research Inc.
LAB Research is a non-clinical contract research organization (CRO) that provides contract research services to the pharmaceutical, biotechnology and agro-chemical market. LAB Research supports the development of its customers' products from four state-of-the-art facilities located in Canada, the United States, Denmark and Hungary. LRI shares trade on the TSX under the symbol "LRI" with 18.0 million shares outstanding.
This news release contains certain forward-looking statements that reflect the current views and/or expectations of LAB Research 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.
Source: LAB RESEARCH INC.
