Warnex concludes acquisition of Adaltis Clinical Laboratory
LAVAL, QC, July 2 /CNW/ - Warnex Inc. (TSX: WNX) announced today that it has concluded its previously announced acquisition of the Clinical Laboratory division of Adaltis Inc. The purchase price is $3.0 million, which is divided into $2.2 million in cash and 655,738 common shares of Warnex. The common shares included in the purchase price are subject to a statutory hold period of 4 months from the date of issue. An additional amount of $200,000 has been remitted to Adaltis to cover the compensation to employees who have not been retained by Adaltis.
Among the acquired laboratory assets, Warnex is obtaining the exclusive license of the Prenatest(R), a 1st and 2nd trimester prenatal screening test that enables pregnant women to find out if they are at a risk of carrying a fetus that may be affected by one of the most common birth anomalies: Trisomy 21 (Down syndrome), Trisomy 18, and other anomalies relating to the closure of the neural tube. The Prenatest(R) has an annual revenue run rate in excess of $2.6 million, representing approximately 14,000 tests.
"This acquisition is an excellent complementary fit with our service groups, expanding our range of services and representing our first foray into human clinical testing," said Mark Busgang, President and CEO of Warnex. "This significant addition to our clinical and contract research capabilities will accelerate our growth rates in the service side of our business."
"The genetic testing market is the fastest growth area in clinical diagnostics, and an area that we have a strong core competency in as a result of our work in developing and commercializing the Genevision(TM) system," added Mark Busgang. "We intend to add resources to aggressively market our clinical services and build market share."
Furthermore, Warnex and Adaltis have entered into a Research and Collaboration Agreement pursuant to which Warnex and Adaltis will co-develop additional human clinical tests to be commercialized by both companies.
Adaltis is a well-established in vitro diagnostics company with an extensive product portfolio and presence in multiple markets. Adaltis' shareholder base includes Picchio Pharma Inc., a joint venture holding company held by Dr. Francesco Bellini, Chairman and CEO of Neurochem Inc., and Power Corporation of Canada, and CITIC Pacific, a member of the CITIC group of companies.
About Warnex
Warnex (www.warnex.ca) is a publicly traded (TSX: WNX) Canadian biotechnology company devoted to protecting public health by providing advanced quality control products and services to the pharmaceutical, agri-food, and environmental sectors. Warnex's -based Genevision(TM) technology offers a versatile DNA detection platform that produces results genomics rapidly and accurately using Real-Time PCR technology, combined with unique genetic markers and software. Applications range from pathogen detection in foods and GMO testing to farm-to-fork traceability using Molecular Bar Codes. The Genevision development pipeline includes applications in the detection of viruses, allergens, toxins, yeasts, and fungi, as well as meat speciation and bioterrorism. Warnex's profitable and growing analytical and bioanalytical service groups offer a variety of quality control services, method development and validation, and contract R&D, as well as bioavailability and bioequivalence studies for clinical trials.
