Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : Trickle Portfolio -- Ignore unavailable to you. Want to Upgrade?

To: tuck who wrote (809)	8/27/2001 9:46:47 AM
From: tuck	Read Replies (1) \| Respond to of 1784

>>TORONTO, Aug. 27 /PRNewswire/ - MDS Inc. (TSE:MDS - news; NYSE:MDZ - news) today announced the completion of a number of integration activities within the life sciences segment that will impact third quarter 2001 results. Over the last number of weeks, our life sciences businesses have completed a number of initiatives targeted at improving the efficiency and overall profitability of our life sciences businesses. MDS Inc. has: - Completed the closure of unprofitable Site Management Office locations in Laval, Quebec and Dallas, Texas to concentrate on our core contract research activities. - Integrated our Therapy Systems software development group in Canada with our group in Sweden. We have also taken steps to ensure the overhead structure of this business is in line with the size of our market. - Concluded the restructuring of MDS Pharma Services. In addition, we have discontinued our efforts to develop our MDS Pharmacologics venture. This novel approach to funding drug development off- balance sheet for pharmaceutical customers is not financeable in the current market. While we remain hopeful for the eventual success of this funding model, further investment cannot be justified at this time. Consequently, we have written off the investment made to date in this venture. These initiatives combined will have a pre-tax impact on net income of approximately $28 million and an after-tax impact of $22 million in the third quarter of 2001. These charges will be offset by the following one-time gains: A dilution gain of $17 million dollars related to the previously announced investment in MDS Proteomics shares by Abgenix is partially offset by a reduction of the MDS Proteomics tax recoverable provision. Research and development income tax credits which will be realized upon the consolidation of certain Canadian legal entities within the Life Sciences segment. These tax credits are to be recorded as a reduction in research and development spending and will total approximately $29 million. It is anticipated that these initiatives will have a positive impact of $0.03 earnings per share before goodwill in our third quarter results, which will be reported on September 19, 2001. MDS will be holding a conference call today at 9:30 am. The teleconference dial-in number is (416) 695-5801. A replay of the call will be available for one week by dialing (416) 695-5800; passcode 886737.<< snip Cheers, Tuck