IVAX Diagnostics Reports Sale of Parent Company's Interest
MIAMI--(BUSINESS WIRE)--Sep 2, 2008 - IVAX Diagnostics, Inc. (AMEX:IVD) announced that today a group controlled by two experienced and well-known international medical diagnostics and pharmaceutical industry entrepreneurs, Paul Kennedy and Patrice Debregeas, purchased from Teva Pharmaceutical Industries Limited all of the approximately 72% of the outstanding shares of IVAX Diagnostics owned by it for an aggregate purchase price of $14 million, or $0.70 per share.
Paul Kennedy has more than 30 years of senior executive experience with Novo Nordisk France, a French subsidiary of the world's leading pharmaceutical company in the insulin market, Abbott France, a French subsidiary of the multinational pharmaceutical company, and Boots Co. Ltd., a U.K.-based healthcare retailer. During his 15-year tenure as CEO and President of Novo Nordisk France, that company achieved a market share of more than 65% of the insulin market in France. Mr. Kennedy was most recently a member of senior management and an executive director of Cozart plc, a medical diagnostics company specializing in drugs-of-abuse testing in the U.K. and Europe. During his tenure at Cozart, he was responsible for establishing and growing international sales, which he accomplished through a mix of acquisitions and organic sales growth.
Patrice Debregeas is currently the President of Debregeas & Associes Pharma SAS, a company specializing in drug development located in Paris, France. Previously, Mr. Debregeas was the CEO, President and co-founder of Ethypharm SA, a leading company in the field of drug delivery in Europe.
Paul Kennedy said, "We are delighted to be able to work with IVAX Diagnostics, which has already established itself as a company with a solid reputation in the field of infectious diseases and autoimmune diseases, both in the U.S. and Europe. We plan to build on IVAX Diagnostics' operating companies in the U.S. and Italy by expanding the menu of test kits that they offer to include other complementary infectious disease and autoimmune testing sectors.
"We expect that these test kits will be of direct interest to our current customer base. In addition, we intend to supplement IVAX Diagnostics' organic growth with focused and opportunistic acquisitions in the diagnostics markets of infectious disease and autoimmune disease and in higher-value market segments such as drugs-of-abuse diagnostics. Many of IVAX Diagnostics' current assays are sold in conjunction with instrumentation that allows the assays to be automated. We expect to continue to pursue opportunities that will enhance IVAX Diagnostics' position in laboratory automation as well. We also intend to focus our efforts on expanding sales in major markets such as France, Germany, the U.K. and Spain," Mr. Kennedy concluded.
Patrice Debregeas said, "We believe that Paul's and my experience, together with the IVAX Diagnostics team, will enable us to expand IVAX Diagnostics' product offerings to its current customer base and to expand its market reach. Our goal is to make IVAX Diagnostics one of the leaders in the diagnostics industry."
Kevin Clark, acting Chief Executive Officer and Chief Operating Officer of IVAX Diagnostics, said, "We are very excited about the experience and entrepreneurial spirit that Paul and Patrice bring to the team. We look forward to the opportunities for internal as well as external growth that we believe Paul and Patrice can bring to IVAX Diagnostics through their industry experience and strategic relationships."
Eli Shohet, Senior Vice President of Teva Europe, said, "The IVAX Diagnostics team has worked hard to build a business that is well positioned to pursue exciting growth opportunities. We wish Paul, Patrice and the team at IVAX Diagnostics much success in their future endeavors."
Paul Kennedy and Patrice Debregeas are expected to join IVAX Diagnostics' Board of Directors at the next meeting of the Board of Directors. Paul Kennedy is also expected to be appointed to lead IVAX Diagnostics' executive management team.
About IVAX Diagnostics, Inc.
IVAX Diagnostics, Inc., headquartered in Miami, Florida, develops, manufactures and markets proprietary diagnostic reagents, instrumentation, and software in the United States and Italy through its three subsidiaries: Diamedix Corporation, Delta Biologicals S.r.l., and ImmunoVision, Inc.
Except for the historical matters contained herein, statements in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements involve risks and uncertainties that may affect the business and prospects of IVAX Diagnostics, Inc., including, without limitation, that: IVAX Diagnostics may not successfully implement the strategic initiatives described above; the implementation of the strategic initiatives described above may result in additional expenses for IVAX Diagnostics; even if successfully implemented, the strategic initiatives described above may not result in improved financial performance for IVAX Diagnostics; IVAX Diagnostics may not expand the menu of test kits that it offers to include other complementary infectious disease or autoimmune testing sectors or otherwise; IVAX Diagnostics' current customer base may not respond as expected to an expansion of IVAX Diagnostics' menu of test kits; IVAX Diagnostics may not achieve organic growth; IVAX Diagnostics may not identify or consummate acquisitions in the diagnostics markets of infectious disease or autoimmune disease or in higher-value market segments such as drugs-of-abuse diagnostics or otherwise; IVAX Diagnostics may not enhance its position in laboratory automation; IVAX Diagnostics may not expand sales in major markets such as France, Germany, the U.K. or Spain or elsewhere; IVAX Diagnostics may not expand its product offerings, expand its market reach, or become a leader in the diagnostics industry; and other risks and uncertainties that may cause results to differ materially from those set forth in the forward-looking statements. In addition to the risks and uncertainties set forth above, investors should consider the economic, competitive, governmental, technological and other risks and uncertainties discussed in IVAX Diagnostics' filings with the Securities and Exchange Commission, including, without limitation, the risks and uncertainties discussed under the heading "Risk Factors" in such filings.
IVAX Diagnostics, Inc., Miami
Duane Steele, 305-324-2338
Posted: September 2008