MDS Inc. Supports Proteomics New Business Plan and Financial Reorganization
01 Juin 2004 - 11:40PM
PR Newswire (US)
MDS Inc. Supports Proteomics New Business Plan and Financial
Reorganization TORONTO, June 1 /PRNewswire-FirstCall/ -- MDS Inc.
(TSX: MDS, NYSE: MDZ) announced it is working with MDS Proteomics
(MDSP) to implement a new business plan and financial
reorganization. MDSP has been evaluating strategies to leverage its
assets, technology and experience over the last several months. The
new business model will focus on the provision of biomarker
identification, lead optimization and protein analysis services.
The financial reorganization will include: - Conversion of all
existing funded debt into equity in the company; - In exchange for
CDN$15 million, MDS Inc. will gain access to tax assets and an
ongoing technology access agreement; and - Implementation of the
new business model to achieve cash flow breakeven operations by the
end of 2005. As a result of the proposed reorganization MDS Inc.
will hold less than 50% of the common equity in MDSP and will
require a re-evaluation of the carrying value for the assets of
MDSP. MDS Inc. expects to take a one-time charge in its second
quarter financial results. This reorganization will also affect the
manner in which MDS Inc. accounts for its investment in MDSP in the
future and the impact that MDSP will have on its reported earnings.
At MDS Inc., our more than 10,000 highly skilled people provide
enabling products and services for the development of drugs and the
diagnosis and management of disease. We focus on helping to
discover new drugs, assisting doctors to diagnose and treat
patients and preventing the spread of disease. Find out more about
MDS Inc. at http://www.mdsintl.com/ or by calling 1-888-MDS-7222,
24 hours a day. DATASOURCE: MDS Inc. CONTACT: Investor Inquiries:
Sharon Mathers, Vice-President, Investor Relations, (416) 675-6777
ext. 2993; Media Inquiries: Naomi Nemeth, Director, Global External
Communications, (416) 213-4692
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