Meridian Signs Agreement in Principle to Acquire Line of Recombinant Proteins from Vybion, Inc.
CINCINNATI--(BUSINESS WIRE)--May 13, 2008--Meridian Bioscience, Inc. Cincinnati, Ohio (NASDAQ: VIVO) today announced it has executed a letter of intent to acquire a line of infectious disease recombinant proteins and cardiac antigens from Vybion, Inc. The purchase price includes cash and future royalties based on net sales of the acquired products, the amounts of which were not disclosed. The assets to be acquired include a portfolio of recombinant viral proteins and cardiac antigens, customer lists, supply agreements, patent and technology rights, equipment, and on-hand inventory. These products will be manufactured at Meridian's wholly owned subsidiary, Meridian Life Science, Inc. (MLS) located in Memphis, TN.
The products to be acquired from Vybion add to the growing portfolio of highly specialized biologicals that Meridian manufactures and distributes to the diagnostic, pharmaceutical, and research markets. These products will be highly complementary to Meridian's existing products manufactured for the large diagnostic companies as critical components of commercial diagnostic products used in the diagnosis of infectious diseases and in the monitoring of human protein levels in hepatitis, HIV, and cardiac disease. This acquisition adds important technologies and capabilities to Meridian's Life Science business and will complement Meridian's expanding life science brands: BIODESIGN, OEM Concepts, Viral Antigens, and Meridian Biologics. In addition to its technological capabilities, the acquired product line will add proprietary manufacturing know-how and access to important patents for the development and production of recombinant proteins, an emerging technology in life sciences. Through this acquisition and development of advanced enabling technologies, Meridian continues to expand its life science business to support and service researchers, diagnostic test manufacturers, as well as biopharmaceutical and biotechnology companies.
Completion of the transaction is subject to execution of a definitive purchase agreement, satisfactory due diligence, and other customary conditions. The transaction is expected to be completed during the next 30 to 60 days.
Richard L. Eberly, President, Meridian Life Science, Inc., commented, "We are excited about the addition of a new product line for Meridian's expanding portfolio of highly specialized biologicals, and also about acquiring an emerging enabling technology that allows for the development and manufacture of recombinant proteins. This acquisition adds key capabilities and revenues to our expanding life science business. We are enthusiastic about the strategic fit as it relates to Meridian's goals of growing its life science business through internal growth and acquisitions."
FORWARD LOOKING STATEMENTS
The Private Securities Litigation Reform Act of 1995 provides a safe harbor from civil litigation for forward-looking statements accompanied by meaningful cautionary statements. Except for historical information, this report contains forward-looking statements which may be identified by words such as "estimates", "anticipates", "projects", "plans", "seeks", "may", "will", "expects", "intends", "believes", "should" and similar expressions or the negative versions thereof and which also may be identified by their context. Such statements, whether expressed or implied, are based upon current expectations of the Company and speak only as of the date made. The Company assumes no obligation to publicly update any forward-looking statements. These statements are subject to various risks, uncertainties and other factors that could cause actual results to differ materially, including, without limitation, the following: Meridian's continued growth depends, in part, on its ability to introduce into the marketplace enhancements of existing products or new products that incorporate technological advances, meet customer requirements and respond to products developed by Meridian's competition. While Meridian has introduced a number of internally developed products, there can be no assurance that it will be successful in the future in introducing such products on a timely basis. Ongoing consolidations of reference laboratories and formation of multi-hospital alliances may cause adverse changes to pricing and distribution. Costs and difficulties in complying with laws and regulations administered by the United States Food and Drug Administration can result in unanticipated expenses and delays and interruptions to the sale of new and existing products. Changes in the relative strength or weakness of the U.S. dollar can change expected results. One of Meridian's main growth strategies is the acquisition of companies and product lines. There can be no assurance that additional acquisitions will be consummated or that, if consummated, will be successful and the acquired businesses successfully integrated into Meridian's operations. In addition to the factors described in this paragraph, Part I, Item 1A Risk Factors of our Form 10-K contains a list of uncertainties and risks that may affect the financial performance of the Company.
Meridian is a fully integrated life science company that manufactures, markets and distributes a broad range of innovative diagnostic test kits, purified reagents and related products and offers biopharmaceutical enabling technologies. Utilizing a variety of methods, these products and diagnostic tests provide accuracy, simplicity and speed in the early diagnosis and treatment of common medical conditions, such as gastrointestinal, viral and respiratory infections. Meridian's diagnostic products are used outside of the human body and require little or no special equipment. The Company's products are designed to enhance patient well-being while reducing the total outcome costs of healthcare. Meridian has strong market positions in the areas of gastrointestinal and upper respiratory infections, serology, parasitology and fungal disease diagnosis. In addition, Meridian is a supplier of rare reagents, specialty biologicals and related technologies used by biopharmaceutical companies engaged in research for new drugs and vaccines. The Company markets its products and technologies to hospitals, reference laboratories, research centers, veterinary testing centers, physician offices, diagnostics manufacturers and biotech companies in more than 60 countries around the world. The Company's shares are traded through NASDAQ's Global Select Market, symbol VIVO. Meridian's website address is www.meridianbioscience.com.
CONTACT: Meridian Bioscience, Inc.
John A. Kraeutler, Chief Executive Officer, 513-271-3700
SOURCE: Meridian Bioscience, Inc.