Commonwealth Biotechnologies Completes Integration Program for its Complementary Drug Discovery BusinessesRICHMOND, Va.--(BUSINESS WIRE)--Dec 10, 2007 - Commonwealth Biotechnologies, Inc. (NASDAQ:CBTE) is pleased to advise the market that it has completed a company-wide reorganization aimed at realigning its sales and marketing capabilities with its newly integrated suite of drug-discovery products and services following the successful acquisitions of Mimotopes Pty Ltd and Exelgen Ltd (formerly Tripos Discovery Research Ltd) earlier this year. The reorganization is designed to maximize the revenue and cost synergies from these acquisitions and boost profitability across the company. Entering into 2008, cost synergies, through targeted redundancies and salary savings will generate annual savings of $1.6 million. The reorganization of its sales and marketing team are expected to provide the global drug discovery market, estimated to be worth $7 billion by 2009 (Kalorama Information, 2006), with a one-stop-shop for pre-clinical products and services in small molecule, peptide and biologics development.
"Our focus on financial discipline and a competitive cost base remains a priority, and we will continue to seek ways to refine our organizational structure and business portfolio," Chief Executive Officer Paul D'Sylva said. "However, the primary purpose of this reorganization is to position our company for continued growth in a sustainable and profitable format by aligning its sales expertise with its new portfolio of products and services."
Richard Freer, CBI's Chairman and COO said, "These changes demonstrate management's commitment to the integration of our drug discovery businesses. By targeting both cost synergies, through targeted wage savings, and revenue synergies, through an integrated sales and marketing approach, we are emphasizing strong revenue and earnings growth."
As part of the reorganization, Mr. Mark Hober has been appointed as Vice President, Business Development and Marketing. Mr. Hober has significant experience in the drug discovery industry and a successful track record of implementing business development and marketing strategies to generate revenue growth. "Collectively, CBI now offers world-leading discovery products and services across all major drug classes," Mr. Hober said. "Our strategy is to take full advantage of these complementary capabilities by offering integrated solutions to the global drug discovery industry. By working with CBI, our clients are provided with access to world-leading expertise in design and manufacturing, increased drug development capabilities and are able to achieve a more efficient route to clinical studies."
About Commonwealth Biotechnologies, Inc.
The CBI group of companies offers cutting-edge research and development products and services to the global life sciences industry. CBI now operates four distinct business units: (1) CBI Services, a discovery phase contract research organization; (2) Fairfax Identity Laboratories, a DNA reference business; (3) Mimotopes Pty, Ltd, Melbourne, Australia, a peptide and discovery chemistry business; and (4) Exelgen, Ltd, Bude, UK, a medicinal and synthetic discovery chemistry business. Collectively, CBI companies employ over 115 staff in world-class laboratories. For more information, visit CBI on the web at www.cbi-biotech.com.
Forward Looking Statements
Any statements contained in this release that relate to future plans, events or performance are forward-looking statements that involve risks and uncertainties as identified in the CBI's filings with the Securities and Exchange Commission. These forward-looking statements are generally identifiable by use of the words "may," "will," "should," "expect," "anticipate," "estimate," "believe," "intend" or "project" or the negative thereof or other variations thereon or comparable terminology. Actual results, events or performance may differ materially. No statement herein should be considered an offer of any securities. Readers are cautioned not to place undo reliance on these forward-looking statements, which speak only as the date hereof. Specifically, there can be no guarantee that:
-- The acquisition of Mimotopes Pty Ltd and/or Exelgen Ltd will enhance CBI's overall financial performance; or
-- The implementation of CBI's company-wide reorganization will enhance CBI's overall financial performance.
A number of factors, including customer demand, industry trends, armed conflict, and terrorist activities could alter these trends referenced herein. CBI undertakes no obligation to publicly release the results of any revisions to these forward looking statements that may be made to reflect the events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Posted: December 2007