LAVAL, QC, Aug. 28 /CNW Telbec/ - LAB Research Inc. ("LRI" or "LAB
Research") (TSX: LRI), a rapidly growing global non-clinical contract research
organization, announced today expansion plans for its Canadian operations.
The expansion project will start in October 2007, and once completed by
the end of 2008, will increase the housing capability in Canada from 36 to
80 rooms, including 12 multi-purpose rooms to be used for inhalation
toxicology. Total space will increase from 87,000 to 170,000 square feet. The
total cost of this expansion, estimated at $40 million once fully equipped
will be spread over several years, and facilitate organic growth of LRI until
2011. The initial investment of $24 million should double the revenue
generating capacity of the site in the first year. The company intends to
finance this expansion with a combination of working capital and term loan
financing. In addition to introducing inhalation toxicology capabilities in
Canada, the expansion will also facilitate the growth of some of the sites'
most prominent services such as safety pharmacology and immunology to leverage
the Company's scientific leadership in these areas.
"The need to expand our Canadian site less than 12 months after the last
phase of construction clearly demonstrates the strong demand for LAB Research
Canada's services and the success of our market expansion initiatives
undertaken over the past years driven mostly by the addition of key people,"
said Mr. Luc Mainville, the Chief Executive Officer of LRI. "The specialized
inhalation market is increasing at very fast pace and offers significant
growth potential for us. We plan to capitalize on this opportunity as well as
continue to expand other scientifically driven activities by leveraging the
expertise already in place. That expansion should allow our site's revenues to
triple over the next 5 years," added Mr. Mainville.
The Company's Hungarian expansion, still scheduled for completion by the
end of September 2007, will increase five-folds the large animal housing
capabilities of the site. The latter expansions will more than double the
revenue generating capacity of the site.
"While these expansion plans are aimed at fuelling the orderly growth our
respective operations, we remain focussed on maintaining the highest quality
standards for our services and meet the growing needs of our expanding global
clientele" concluded Mr. Mainville
About LAB Research Inc.
LAB Research is a 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 18.0 million shares outstanding.
For further information:
For further information: Luc Mainville, Chief Executive Officer, LAB
Research Inc., (450) 973-2240, Ext.: 1206, firstname.lastname@example.org; Media
and Investor: Dominic Sicotte, Echoes Financial Network Inc., (866) 633-9551,
(514) 842-9551, email@example.com