IDEXX Laboratories Announces New Agreement with Ortho-Clinical Diagnostics
"We are very excited to be extending and strengthening our partnership with OCD in the veterinary market," said Jonathan Ayers, President and CEO. "This relationship will yield substantial benefits to our veterinary customers, as well as to IDEXX and our partner, OCD. Our VetTest chemistry analyzer, which uses OCD's dry-slide technology, is the standard for accuracy and test menu breadth and flexibility, and we expect to support this product well into the future. In addition, we are developing a next-generation chemistry analyzer that will use OCD's dry-slide technology as the basis for the consumable, while incorporating significant advancements in ease of use, sample throughput and test menu. Our commitment to dry-slide technology provides additional benefits to our chemistry business, including a secure long-term supply of consumables at an attractive cost; and efficiencies in product development, manufacturing, customer support and other areas associated with the use of a common technology platform in both our current and next-generation analyzers."
"This agreement improves several elements of the cost structure of our chemistry business and lays the foundation for the introduction of a superior new product. We believe that both of these developments will permit IDEXX to generate attractive growth in the volume of dry-slide chemistry consumables sold in the global veterinary market."
As a result of this new agreement, IDEXX has decided to discontinue certain internal development activities relating to an alternative clinical chemistry instrument, which will result in a fourth quarter non-cash, pre-tax charge of approximately $7.3 million, or $0.12 per share after tax, primarily consisting of write-downs of the value of manufacturing equipment purchased for production of consumables for use in this instrument.
IDEXX Laboratories, Inc. is a worldwide leader in the development and commercialization of innovative, technology-based products and services for animal health. The Company's largest business is focused on companion animal health, combining biotechnology, medical device technology and information technology to aid veterinarians in providing better medicine while building successful practices. IDEXX Laboratories is also focused on employing innovative technologies to monitor production animal health and the safety and quality of drinking water and milk. Headquartered in Westbrook, Maine, IDEXX Laboratories employs more than 2,400 people and offers products to customers in more than 100 countries.
This press release contains forward-looking statements regarding IDEXX as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations of future events, which are subject to risks and uncertainties. If underlying assumptions prove inaccurate, actual results could vary materially from management's expectations. Risks and uncertainties include timing and success of new product introductions, competition and technological change, government regulation and obtaining government approvals, product demand and market acceptance of products, availability of products and raw materials, and litigation. A further description of these risks and uncertainties and other factors can be found in the Company's Annual Report on Form 10-K for the year ended December 31, 2002 (PDF, 350 KB) and the Quarterly Report on Form 10-Q for the quarter ended June 30, 2003, (PDF, 2,240 KB) in the section captioned "Management's Discussion and Analysis of Financial Condition and Results of Operations." The Company assumes no obligation to update any forward-looking statements as a result of new information or future events or developments.
Contact: Merilee Raines, Vice President, Finance, (207) 556-0446