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BioReliance Announces Achieved and Anticipated Cost Synergies Following
Acquisition of Q-One Biotech
ROCKVILLE, Md., Dec. 8 /PRNewswire-FirstCall/ -- BioReliance Corporation
announced today that, following its recent acquisition of Q-One Biotech Group
Ltd., the Company expects to achieve annualized cost synergies in the
combination of approximately $4.5 to $5.5 million, before the effect of income
taxes, by the end of the first quarter of 2004. In addition to these cost
structure improvements, BioReliance management expects the acquisition to create
significant opportunities for revenue growth.
BioReliance's acquisition of Q-One Biotech was announced in August 2003 and the
transaction was completed on September 23, 2003. For the nine months ended
September 30, 2003, on a combined basis, BioReliance and Q-One had revenues of
$83.9 million and assets of $177.5 million. BioReliance disclosed pro forma
combined historical financial information for the companies in a report filed
today with the Securities and Exchange Commission.
Based on achieving the planned cost synergies, BioReliance management expects
the transaction to be accretive to earnings per share in the fourth quarter of
2003 and substantially more accretive during 2004, the first full year of
combined operations. These anticipated cost savings are expected to result from
reduced compensation expense associated with Q-One stock option grants,
efficiencies in administration, efficiencies in sales and marketing,
standardization of processes, elimination of redundant facilities and other
savings opportunities.
Overall, the planned reorganization is part of creating a more capable and
global service enterprise, implementing a post-acquisition strategy of serving
BioReliance's international client base with integrated, worldwide service
offerings and support.
This globalization builds upon new and enhanced capabilities for serving
biotechnology and pharmaceutical customers. BioReliance now provides extended
resources and know-how to serve the needs of its clients. The Company has
increased its range of services with the continued availability of Q-One assays.
It enjoys considerably greater capacities for scheduling client work, enhancing
timeliness while maintaining quality. Both custom and standard services
continue to be offered, and clients can better source required services in the
most cost effective manner possible. The combination with Q- One also has
enhanced multi-site backup capabilities for many services.
BioReliance previously announced the launch of a global Sales and Marketing
organization, with which the Company is now offering biologics testing and
manufacturing services on a comprehensive basis to clients around the world.
About BioReliance
BioReliance Corporation is a leading contract service organization providing
testing, development and manufacturing services for biologics and other
biomedical products to biotechnology and pharmaceutical companies worldwide. The
Company believes that it is the largest provider of outsourcing services focused
on the expanding biologics sector of the pharmaceutical industry.
Forward-Looking Statements
Certain statements made in this release are "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include, without limitation, any statement that may
predict, forecast, indicate, or imply future results, performance, or
achievements, and may contain the words "believe," "anticipate," "confident,"
"expect," "estimate," "project," "will be," "will continue," "will likely
result," or similar words or phrases. Comments such as those with respect to the
likelihood, timing and magnitude of expected cost savings and other synergies or
the opportunities for revenue growth resulting from BioReliance's acquisition of
Q-One Biotech constitute forward-looking statements. As and when made,
management believes that these forward-looking statements are reasonable.
BioReliance undertakes no obligation to revise or publicly release the results
of any revision to these forward-looking statements. Forward- looking
statements involve risks and uncertainties, which may cause actual results to
differ materially from the forward-looking statements. Risks and uncertainties
are detailed from time to time in reports filed by BioReliance with the
Securities and Exchange Commission, including in its Forms 10-K and 10-Q. Given
these risks and uncertainties, investors should not place undue reliance on
forward-looking statements as a prediction of actual results.
DATASOURCE: BioReliance Corporation
CONTACT: John L. Coker, Senior Vice President, Finance and
Administration and Chief Financial Officer of BioReliance Corporation,
+1-301-762-5260; or General Info., Marilynn Meek, +1-212-445-8451, or
Analysts, Julie Tu, +1-212-445-8456, both of Financial Relations Board