Sfbc (NASDAQ:SFCC)
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SFBC International, Inc. (NASDAQ:SFCC) ("the Company" or
"SFBC"), a provider of drug development services to branded
pharmaceutical, biotechnology, generic drug and medical device
companies, today announced that it has reached an agreement with East
Bay Corporation ("East Bay"), to settle all pending litigation
regarding a land lease at SFBC's Miami facility.
The terms of the settlement include the cancellation of the
existing land lease. Additionally, if East Bay's parcel is sold or
re-leased to a third party anytime within the next four years, SFBC
will receive six percent of East Bay's net proceeds.
This settlement does not impact the adjacent parcel of land
SFBC acquired in the first quarter of 2005. Including this adjacent
parcel of land, SFBC owns approximately 56% of the land area at
11190 Biscayne Boulevard, where the Company's Miami facility is
located. East Bay continues to own the remaining 44%.
As previously disclosed, SFBC expects to sell its land on Biscayne
Boulevard because it no longer serves any business purpose for future
SFBC operations. While SFBC does not anticipate an immediate sale of
its property, SFBC and East Bay have agreed to cooperate with each
other and believe that a combined sale of their respective properties
may maximize their value. Based upon estimated current market prices
and current zoning, the value of SFBC's land owned at this location
combined with the Company's former CPA building in the Miami area,
which is currently for sale, is estimated to be approximately $9
million to $12 million. In the event the Company is able to obtain
more favorable zoning for the Miami land, the Company believes that
the value of the land will increase. As required under the existing
covenants of the Company's credit facility, any proceeds received from
the sale of these properties in excess of $500,000 will be used to pay
down the amount outstanding under the Company's credit facility.
All other terms of the settlement will remain confidential.
About SFBC International, Inc.
SFBC International is an international drug development services
company offering a comprehensive range of clinical development,
clinical and bioanalytical laboratory, and consulting services to the
branded pharmaceutical, biotechnology, generic drug and medical device
industries. SFBC has more than 30 offices, facilities and laboratories
with more than 2,000 employees strategically located throughout the
world. For more information, visit the Company's Web site at
http://www.sfbci.com or http://www.pharmanet.com.
Forward-Looking Statements
Certain statements made in this press release are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 (the "Act"). Additionally words such as "seek,"
"intend," "believe," "plan," "estimate," "expect," "anticipate" and
other similar expressions are forward-looking statements within the
meaning of the Act. Some or all of the results anticipated by these
forward-looking statements may not occur. Factors that could cause or
contribute to such differences include, but are not limited to, our
ability to leverage the strong reputation of PharmaNet, whether
adverse publicity relating to SFBC's Miami operations causes clients
to select competitors, not only for early stage branded clinical
trials but also for other aspects of SFBC's business; SFBC's ability
to resolve open issues relating to its Miami property including
whether it can successfully appeal and/or enjoin the Miami-Dade County
Unsafe Structures Board ruling and any related fines or expenses if we
are unsuccessful; the associated costs and expenses with discontinuing
the Company's operations in Miami and Ft. Myers; whether SFBC will
achieve its estimated value for its Miami property; whether SFBC will
be able to obtain more favorable zoning for its Miami property;
continued adverse publicity related to actions of the United States
Senate Finance Committee; developments with respect to the SEC's
inquiry and securities class action lawsuits and derivative lawsuits;
SFBC's assessment of its current FDA inspections; SFBC's ability to
successfully achieve and manage the technical requirements of
specialized clinical trial services, while complying with applicable
rules and regulations; regulatory changes; changes affecting the
clinical research industry; a reduction of outsourcing by
pharmaceutical and biotechnology companies; SFBC's ability to compete
internationally in attracting clients in order to develop additional
business; cancellation of contracts; SFBC's ability to retain and
recruit new employees; SFBC's clients' ability to provide the drugs
and medical devices used in its clinical trials; SFBC's future stock
price; SFBC's financial guidance; and the national and international
economic climate as it affects drug development operations. Further
information can be found in SFBC's risk factors contained in its Form
10-K filed with the SEC in 2006 and other filings with the Securities
and Exchange Commission.