Inverness Medical Innovations acquires assets of First Check Diagnostics
19 February 2007
Waltham, Mass., USA. Inverness Medical Innovations, Inc. (AMEX:IMA), a
leading manufacturer and marketer of rapid diagnostic products for the
consumer and professional markets, has acquired substantially all of the
assets of First Check Diagnostics LLC, a privately held diagnostics company,
for approximately $25 million in cash. In addition, Inverness will pay an
earn out to First Check equal to the incremental revenue growth of the
acquired products for 2007 and for the first nine months of 2008, as
compared to the immediately preceding comparable periods. First Check had
2006 revenues of approximately $11 million and has been operating
profitably. First Check, headquartered in Lake Forest, California, is the
market leader in the rapidly-growing field of home testing for drugs of
abuse, including marijuana, cocaine, methamphetamines and opiates. In
addition, it offers tests, also sold through retail channels, for alcohol
abuse, cholesterol monitoring, and colon cancer screening. Commenting on
the agreement, Mr. Ron Zwanziger, CEO of Inverness said, "We are very
pleased to acquire the First Check business, with its position as the leader
in the over-the-counter drugs of abuse testing market. This area has
exhibited rapid rates of growth and has strong potential for continued
growth. The ability to put drug testing in the hands of the consumer is a
powerful tool in the fight against drug abuse, and aligns well with
Inverness' desire to put diagnostics within the reach of all." Inverness
intends to continue First Check's support of Project 7th Grade and its
efforts to reduce drug use among today's youth. Commenting on the
agreement, Mr. Steve Moak, CEO of First Check said, "We are extremely proud
of the achievements that we have made at First Check. Home drug testing is a
critical tool in protecting children from drugs and I believe that Inverness
has the resources and experience as a leader in OTC diagnostics to get these
products into more homes. I wish Inverness much success in achieving this
important goal." To top
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