Addition of Shanghai Haoyuan Biotech to Complement Screening
Capabilities & Allow PerkinElmer to Enter Growing Chinese Nucleic
Acid-based Blood Screening Market
WALTHAM, Mass. & SHANGHAI--(BUSINESS WIRE)--
PerkinElmer,
Inc. (NYSE: PKI), a global leader focused on the health and safety
of people and the environment, announced today that it has completed the
acquisition of ShanghaiHaoyuan
Biotech Co., Ltd., a China-based infectious disease diagnostics
company. The acquisition extends PerkinElmer's capabilities into nucleic
acid blood screening and in the growing molecular clinical diagnostics
market in China, further strengthening the Company's position as a
diagnostics leader in China as well as across the globe.
Haoyuan, a supplier of molecular infectious disease screening
technologies for blood bank and clinical laboratory settings throughout
China, extends PerkinElmer's portfolio by adding four infectious disease
assays that are approved by China's State Food and Drug Administration
(SFDA). These infectious disease diagnostics tools include a qualitative
3-in-1 assay for the detection of hepatitis B (HBV), hepatitis C (HCV),
and human
immunodeficiency virus (HIV), two clinical quantitative assays that
screen for HBV and HCV, and one qualitative assay screen for chlamydia
trachomatis and neisseria gonorrhoeae (CTNG).
"By combining PerkinElmer's robust disease screening capabilities with
Haoyuan's proprietary reagents and equipment, the Company will be able
to offer highly sensitive systems and assays for quality detection of
blood-borne infections for the Chinese market," said Robert Friel,
chairman and chief executive officer of PerkinElmer. "Integrating
Haoyuan's screening products with PerkinElmer's diagnostics capabilities
will help to further advance the health of the Chinese people by
offering leading technology that ensures accurate diagnosis of
infectious diseases at a low cost."
Facing an annual 15% increase in the demand for blood, the Chinese
government is now mandating and funding infectious disease screening of
donated blood. The Chinese government's latest 5-year plan mandates that
all blood be tested using nucleic acid technologies by the end of 2015.
Compared to antibody testing methods, nucleic acid testing reduces the
potential for failed detection of certain infection diseases that
exhibit long incubation times between infection and detection. There are
approximately 780,000 people living with HIV/AIDS in China. The World
Health Organization also reports chronic infection rates of 8% to 10% of
the adult population with HBV and 3.2 % of China's 1.4 billion
population living with HCV.
The Haoyuan acquisition enables PerkinElmer to supply advanced, highly
sensitive diagnostics screenings to these banks, ensuring that HBV, HCV
and HIV are accurately detected prior to transfusion. Simultaneously,
this product integration strengthens the safety of the blood banks in
China while creating an opportunity for future implementation in other
countries. In a clinical setting, the combined capabilities can also
reduce time for identifying an infectious disease, which enables quicker
treatment and better outcomes for patients. The purchase price for the
transaction was $38 million in cash and potential future additional
consideration based on the achievement of revenue-based targets. The
acquisition is anticipated to be immaterial to PerkinElmer's adjusted
earnings for the remainder of 2012 and 2013 and accretive beginning in
2014.
About PerkinElmer
PerkinElmer, Inc. is a global leader focused on improving the health and
safety of people and the environment. The company reported revenue of
approximately $1.9 billion in 2011, has about 7,000 employees serving
customers in more than 150 countries, and is a component of the S&P 500
Index. Additional information is available through 1-877-PKI-NYSE, or at www.perkinelmer.com.
Use of Non-GAAP Financial Measures
In addition to financial measures prepared in accordance with generally
accepted accounting principles (GAAP), we use certain non-GAAP financial
measures including "adjusted earnings." Adjusted earnings refers to GAAP
earnings, excluding amortization of intangible assets, inventory fair
value adjustments related to business acquisitions, and other costs
related to business acquisitions. We believe that this non-GAAP measure,
when taken together with our GAAP financial measure, allow us and our
investors to better measure the performance of our investments and to
evaluate the long-term profitability trends of our core operations. We
exclude amortization of intangible assets, inventory fair value
adjustments related to business acquisitions, and other costs related to
business acquisitions from these measures because intangibles
amortization charges do not represent what we believe our investors
consider to be costs that support our internal operating structure and
could distort the efficiencies of that structure. Adjusted earnings also
provides for easier comparisons of our performance and profitability
with prior and future periods and relative comparisons to our peers. We
believe our investors do not consider the items that we exclude from
adjusted earnings to be costs of producing our products, investments in
technology and production or costs to support our internal operating
structure, and so we present this non-GAAP measure to avoid overstating
or understating to our investors the performance of our operations.
Factors Affecting Future Performance
This press release contains "forward-looking" statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including, but not limited to, statements relating to estimates and
projections of future earnings per share, cash flow and revenue growth
and other financial results, developments relating to our customers and
end-markets, and plans concerning business development opportunities and
divestitures. Words such as "believes," "intends," "anticipates,"
"plans," "expects," "projects," "forecasts," "will" and similar
expressions, and references to guidance, are intended to identify
forward-looking statements. Such statements are based on management's
current assumptions and expectations and no assurances can be given that
our assumptions or expectations will prove to be correct. A number of
important risk factors could cause actual results to differ materially
from the results described, implied or projected in any forward-looking
statements. These factors include, without limitation: (1) markets into
which we sell our products declining or not growing as anticipated; (2)
fluctuations in the global economic and political environments; (3) our
failure to introduce new products in a timely manner; (4) our ability to
execute acquisitions and license technologies, or to successfully
integrate acquired businesses and licensed technologies into our
existing business or to make them profitable, or successfully divest
businesses; (5) our failure to adequately protect our intellectual
property; (6) the loss of any of our licenses or licensed rights; (7)
our ability to compete effectively; (8) fluctuation in our quarterly
operating results and our ability to adjust our operations to address
unexpected changes; (9) significant disruption in third-party package
delivery and import/export services or significant increases in prices
for those services; (10) disruptions in the supply of raw materials and
supplies; (11) the manufacture and sale of products exposing us to
product liability claims; (12) our failure to maintain compliance with
applicable government regulations; (13) regulatory changes; (14) our
failure to comply with healthcare industry regulations; (15) economic,
political and other risks associated with foreign operations; (16) our
ability to retain key personnel; (17) significant disruption in our
information technology systems; (18) our ability to obtain future
financing; (19) restrictions in our credit agreements; (20) our ability
to realize the full value of our intangible assets; (21) significant
fluctuations in our stock price; (22) reduction or elimination of
dividends on our common stock; and (23) other factors which we describe
under the caption "Risk Factors" in our most recent quarterly report on
Form 10-Q and in our other filings with the Securities and Exchange
Commission. We disclaim any intention or obligation to update any
forward-looking statements as a result of developments occurring after
the date of this press release.
Media Contact:
Edelman (On behalf of PerkinElmer, Inc.)
Paul
Barren, 404-460-9679
paul.barren@edelman.com
or
PerkinElmer,
Inc.
Stephanie Wasco, 781-663-5701
Vice President, Corporate
Communications
stephanie.wasco@perkinelmer.com
or
Investor
Relations:
PerkinElmer, Inc.
Tommy Thomas, 781-663-5889
Vice
President, Investor Relations
tommy.thomas@perkinelmer.com
Source: PerkinElmer, Inc.
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