The agreements follow site and service expansions completed over the last
2 years in Europe and North America
LAVAL, QC, Sept. 8 /CNW Telbec/ - LAB Research Inc. ("LAB", "LAB
Research" or the "Company"), (TSX: LRI), a Canadian-based global non-clinical
contract research organization, today announced that it has entered into three
new master services agreements with some of the most important global sponsors
for each of the pharmaceutical, biotechnology and agro-chemical industries.
Following successful site audits and detailed scientific validation by
each of these specific industry leaders, LAB Canada will be requested to
execute research services for one of the top 3 global pharmaceutical companies
as well as one of the top 3 global biotechnology Company while LAB Hungary
will be providing similar services to one of the largest agro-chemical global
companies located in Europe. Two of the recently signed agreements have
already led to the signing of multi-million $ contracts to be executed in 2009
and 2010 and new contract are under discussions with each sponsors for
execution in 2009 and 2010. LAB expects that these agreements will contribute
to 5-10% of its revenues in 2009.
"We are especially proud to have entered into these new services
agreements with large reputable industry leaders in their respective fields to
expand our large sponsor clientele. The new agreements testify to the merit of
our growth and development strategy and will play a key role in LAB reaching
its future growth and development corporate objectives. The expanded capacity
and services offering created from the completion of our recent expansion
program combined to our every-day growing recognized scientific expertise has
allowed us to position LAB Research as a mid-size and flexible full service
alternative to larger Contract Research Organizations." commented Luc
Mainville, President and Chief Executive Officer of LAB Research. "The
strategic imperatives of our growth strategy included the broadening of our
clientele and penetration of global recurrent research and development
sponsors. The execution of these agreements more than validates our strategy.
To date, the capital markets have penalized our stock price because of the
financial leverage resulting from our expansion strategy. We are convinced
that the coming quarters will demonstrate some of the commercial and financial
benefits of our increased global operational leverage which will overtime more
than outweigh the financial drawbacks."
About LAB Research Inc.:
LAB Research is a Canadian global non-clinical contract research
organization that provides contract research services to the pharmaceutical,
biotechnology, agro-chemical, petro-chemical and industrial markets. LAB
Research supports the development of its customers' products from three
state-of-the-art facilities located in Canada, Denmark and Hungary.
LAB Research's shares trade on the TSX under the symbol "LRI", with 18.1
million shares outstanding.
This news release contains certain forward-looking statements that
reflect the current views and/or expectations of LAB Research Inc. with
respect to its performance, business and future events. Such statements are
subject to a number of risks, uncertainties and assumptions. Actual results
and events may vary significantly.
For further information:
For further information: visit LAB Research's website at
www.labresearch.com, or contact: Luc Mainville, Chief Executive Officer, (450)
973-2240 (ext. 1206), firstname.lastname@example.org; Frédéric Dumais, Partner,
Jasmin-Dumais, Financial Communications, (514) 862-1251, email@example.com