PharmaNet Development Group, Inc. Announces Sale-Leaseback of Quebec City Facility
October 18 2006 - 5:31PM
Business Wire
PharmaNet Development Group, Inc. (NASDAQ: PDGI), a leading
provider of drug development services, today announced the
sale-leaseback of its future Quebec City facility (new facility)
that is currently under construction. The new facility has been
sold to a Canadian investor for approximately $11.2 million
Canadian dollars. The proceeds from the sale effectively reimburse
the Company for substantially all of the cash outlays it has made
on the new facility. The new facility will house the headquarters
of the Company�s Anapharm subsidiary, including all of the
bioanalytical and clinical operations and administrative offices
currently in the Company�s two existing facilities located in
Quebec City. The building and leasehold improvements are expected
to be completed in the first quarter of 2007. The orderly transfer
of operations to the new facility is expected to be completed in
the second quarter 2007. The leaseback shall commence June 1, 2007.
�The completion of the sale-leaseback agreement was an important
element of our financial strategy,� commented John P. Hamill,
executive vice president and chief financial officer. �The proceeds
will further strengthen our cash position.� �The new facility,
which will meet the specific requirements of the business, will
enhance operational efficiency while providing space for potential
future expansions,� added Marc LeBel, executive vice president
bioanalytical laboratories and president and chief executive
officer, Anapharm. Further details are being filed on a Form 8-K
with the SEC. About PharmaNet Development Group, Inc. PharmaNet
Development Group, Inc. 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. PharmaNet Development Group, Inc.
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 website at
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,
industry trends and information; whether adverse publicity relating
to the Company�s discontinued Miami operations causes clients to
select competitors, not only for early stage branded clinical
trials but also for other aspects of the Company�s business; its
ability to comply with the timeline agreed upon in the settlement
reached with the Miami-Dade County Unsafe Structures Board and any
related fines or expenses if we are unsuccessful complying with
such timeline; the associated costs and expenses with discontinuing
the Company's operations in Miami and Ft. Myers, including the
potential costs of the demolition of the Miami facility; the
Company's ability to determine its impairment charges and costs of
discontinued operations; whether the Company will achieve its
estimated value for its Miami property; developments with respect
to the SEC's inquiry and securities class action lawsuits and
derivative lawsuits; the Company�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; the Company�s ability to compete
internationally in attracting clients in order to develop
additional business; the Company�s evaluation of its backlog and
the potential cancellation of contracts; its ability to retain and
recruit new employees; its clients' ability to provide the drugs
and medical devices used in its clinical trials; the Company�s
future stock price; its assessment of its effective tax rate; the
Company�s financial guidance; our future effective tax rate; our
ability to amend our credit facility within our anticipated
timeline; our anticipated 2006 capital expenditures; our 2006 costs
of compliance of Section 404 of the Sarbanes-Oxley Act; our ability
to remediate our material weaknesses; the impact of foreign
currency transaction costs and the effectiveness of any hedging
strategies that we implement; and the national and international
economic climate as it affects drug development operations. Further
information can be found in the Company�s risk factors contained in
its Annual Report on Form 10-K for the year ended December 31,
2005, and its most recent Quarterly Report on Form 10-Q, which were
originally filed as SFBC International (NASDAQ: SFCC). The Company
does not undertake to update the disclosures made herein, and you
are urged to read our filings with the US Securities and Exchange
Commission. PharmaNet Development Group, Inc. (NASDAQ: PDGI), a
leading provider of drug development services, today announced the
sale-leaseback of its future Quebec City facility (new facility)
that is currently under construction. The new facility has been
sold to a Canadian investor for approximately $11.2 million
Canadian dollars. The proceeds from the sale effectively reimburse
the Company for substantially all of the cash outlays it has made
on the new facility. The new facility will house the headquarters
of the Company's Anapharm subsidiary, including all of the
bioanalytical and clinical operations and administrative offices
currently in the Company's two existing facilities located in
Quebec City. The building and leasehold improvements are expected
to be completed in the first quarter of 2007. The orderly transfer
of operations to the new facility is expected to be completed in
the second quarter 2007. The leaseback shall commence June 1, 2007.
"The completion of the sale-leaseback agreement was an important
element of our financial strategy," commented John P. Hamill,
executive vice president and chief financial officer. "The proceeds
will further strengthen our cash position." "The new facility,
which will meet the specific requirements of the business, will
enhance operational efficiency while providing space for potential
future expansions," added Marc LeBel, executive vice president
bioanalytical laboratories and president and chief executive
officer, Anapharm. Further details are being filed on a Form 8-K
with the SEC. About PharmaNet Development Group, Inc. PharmaNet
Development Group, Inc. 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. PharmaNet Development Group, Inc.
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 website at
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,
industry trends and information; whether adverse publicity relating
to the Company's discontinued Miami operations causes clients to
select competitors, not only for early stage branded clinical
trials but also for other aspects of the Company's business; its
ability to comply with the timeline agreed upon in the settlement
reached with the Miami-Dade County Unsafe Structures Board and any
related fines or expenses if we are unsuccessful complying with
such timeline; the associated costs and expenses with discontinuing
the Company's operations in Miami and Ft. Myers, including the
potential costs of the demolition of the Miami facility; the
Company's ability to determine its impairment charges and costs of
discontinued operations; whether the Company will achieve its
estimated value for its Miami property; developments with respect
to the SEC's inquiry and securities class action lawsuits and
derivative lawsuits; the Company'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; the Company's ability to compete
internationally in attracting clients in order to develop
additional business; the Company's evaluation of its backlog and
the potential cancellation of contracts; its ability to retain and
recruit new employees; its clients' ability to provide the drugs
and medical devices used in its clinical trials; the Company's
future stock price; its assessment of its effective tax rate; the
Company's financial guidance; our future effective tax rate; our
ability to amend our credit facility within our anticipated
timeline; our anticipated 2006 capital expenditures; our 2006 costs
of compliance of Section 404 of the Sarbanes-Oxley Act; our ability
to remediate our material weaknesses; the impact of foreign
currency transaction costs and the effectiveness of any hedging
strategies that we implement; and the national and international
economic climate as it affects drug development operations. Further
information can be found in the Company's risk factors contained in
its Annual Report on Form 10-K for the year ended December 31,
2005, and its most recent Quarterly Report on Form 10-Q, which were
originally filed as SFBC International (NASDAQ: SFCC). The Company
does not undertake to update the disclosures made herein, and you
are urged to read our filings with the US Securities and Exchange
Commission.
Pharmanet Development Grp (MM) (NASDAQ:PDGI)
Historical Stock Chart
From Jun 2024 to Jul 2024
Pharmanet Development Grp (MM) (NASDAQ:PDGI)
Historical Stock Chart
From Jul 2023 to Jul 2024