Through the acquisition Inverness recaptures significant margin recognized by Instant Technologies on the sale of drugs of abuse products manufactured by Inverness. Instant Technologies had revenues in 2006 of approximately $23.0 million, approximately half of which represent Instant Technologies' gross margin in excess of Inverness' product supply costs and will be incremental to Inverness' consolidated revenues. Instant Technologies has been operating profitably and has generated revenue growth of over 25% in recent years.
Commenting on the transaction, Mr. Ron Zwanziger, CEO of Inverness said, "We are very pleased to acquire a controlling interest in Instant Technologies. This transaction not only adds revenues and recaptures margin on our drugs of abuse products, but it gives us direct access to a large new customer base consisting of insurers, major corporations, prisons, law enforcement agencies and other government institutions. These customers, who are an important part of the drugs of abuse marketplace, have very different needs than the physicians' offices, laboratories and hospitals who we have traditionally served."
Mr. James Ramsey, CEO of Instant Technologies added, "Instant Technologies has been a partner of Inverness and its subsidiary Innovacon for quite some time. Our solid relationship and shared vision for the future make this a positive step for both companies."
While Inverness plans to integrate certain of its existing drugs of abuse functions with those of Instant, it also plans to maintain its existing relationships with its other distributors in this area.
About Inverness
Inverness Medical Innovations is a leading developer of advanced diagnostic devices and is presently exploring new opportunities for its proprietary electrochemical and other technologies in a variety of professional diagnostic and consumer-oriented applications including immuno- diagnostics with a focus on women's health, cardiology and infectious disease. The Company's new product development efforts, as well as its position as a leading supplier of consumer pregnancy and fertility/ovulation tests and rapid point-of-care diagnostics, are supported by the strength of its intellectual property portfolio. Inverness is headquartered in Waltham, Massachusetts.
For additional information on Inverness Medical Inc., please visit our website at www.invernessmedical.com.
About Instant Technologies
Instant Technologies is a leading supplier of on-site rapid test devices that include drug and alcohol testing, women's health and clinical diagnostics. Instant Technologies is headquartered in Norfolk, Virginia.
For additional information on Instant Technologies, Inc., please visit www.tryi.com
This press release may contain forward-looking statements within the meaning of the federal securities laws. These statements reflect Inverness' current views with respect to future events and are based on management's current assumptions and information currently available. Actual results may differ materially due to numerous factors including, without limitation, market and economic conditions generally, the demand for drugs of abuse testing products, the ability of Inverness to contintue to successfully develop and manufacture drugs of abuse testing products, the ability of Inverness and Instant Technologies to commercialize drugs of abuse testing products, and the risks and uncertainties described in Inverness' annual report on Form 10-K for the period ended December 31, 2006, and other factors identified from time to time in its periodic filings with the Securities and Exchange Commission. Inverness undertakes no obligation to update any forward- looking statements contained herein.
Source: Inverness Medical Innovations
