Inotiv, a BASi Company, Announces Closing of Pre-Clinical Research Services Transaction, Including New Financing to Fund the ...
December 03 2019 - 8:37AM
Bioanalytical Systems, Inc. (NASDAQ:BASI) (“BASi” or the
“Company”) doing business as Inotiv, a leading provider of
nonclinical and analytical contract research services, announced
today the closing of the previously announced agreement to purchase
substantially all of the assets of Pre-Clinical Research Services,
Inc. (“PCRS”), a premier provider of surgical and medical device
contract research services. In connection with the closing, the
Company also closed on additional funding, which positions the
Company to make future investments in organic growth in the drug
metabolism and pharmacokinetics arena.
The Company, which recently announced the
rebranding of the Company’s contract research services business
under the name Inotiv, closed on the PCRS business on December 1,
2019. In addition to the previously announced terms of the
transaction, the Company purchased real property comprising the
main facility, and additional property located next to the facility
which can be available for future expansion, for the PCRS business
for $2,500,000. In order to finance the transaction, as well as
provide additional capital to fund growth efforts, the Company
amended and restated its credit arrangements with First Internet
Bank to, among other things, increase a current line of credit
under the facility from $3.5 million to $5 million, to add a
capital expenditure line of credit in the principal amount of $3
million, and to add two new term loans in the amounts of
approximately $1.5 million and $1.9 million, respectively, the
proceeds of which were used to fund a portion of the purchase price
for the PCRS business and acquired real property. A Current Report
on Form 8-K containing further details regarding the transaction
and financing will be filed with the U.S. Securities & Exchange
Commission.
“I am pleased to announce the completion of our
strategic agreement with PCRS and the new funding for our DMPK
business, as we wrap up an exciting year of growth and evolution as
a Company,” said Robert Leasure, Jr., the Company’s President and
Chief Executive Officer. “Becoming one with PCRS allows us to
provide broader services by further expanding our toxicology
business and allowing us to offer surgical services for
pharmaceutical and medical device clients. We’re looking to the new
year with optimism, as we continue to focus on providing our
clients with the broad scope and right-sized solutions essential to
their success, and an experience of high-touch care and
collaboration.”
Dr. Donald Maul, founder and president of PCRS,
added, “We are very optimistic about the positive impact of joining
Inotiv. This allows us the opportunity to provide more complete
services to our clients, it creates opportunities for growth for
our staff, and it provides a broader, more stable platform from
which to operate. Since announcing the agreement a few weeks ago,
feedback from our clients has been overwhelmingly positive, which
serves to validate our strategy.”
With this closing, the Company’s clients will
have the ability to work with one provider having expertise in a
broad range of scientific disciplines, including:
- Pharmacology
- Toxicology
- Drug Metabolism
- Pharmacokinetics
- Bioanalysis
- Intravascular Device and Structural
Heart Models
- Surgical and Medical Devices
- Scientific and Regulatory
Consulting
About Inotiv, A Bioanalytical Systems,
Inc., Company
Inotiv, a BASi Company, is a pharmaceutical
development company providing contract research services and
monitoring instruments to emerging pharmaceutical companies and the
world's leading drug development companies and medical research
organizations. The Company focuses on developing innovative
services supporting its clients’ discovery and development
objectives for improved decision-making and accelerated goal
attainment. BASi’s products focus on increasing efficiency,
improving data, and reducing the cost of taking new drugs to
market. Visit inotivco.com for more information about Inotiv,
A BASi Company.
This release may contain forward-looking
statements that are subject to risks and uncertainties including,
but not limited to, risks and uncertainties related to changes in
the market and demand for our products and services, the
development, marketing and sales of products and services, changes
in technology, industry and regulatory standards, the timing of
acquisitions and the successful closing, integration and business
and financial impact thereof, and various market and operating
risks, including those detailed in the Company's filings with the
U.S. Securities and Exchange Commission.
Company Contact:Jill C.
BlumhoffChief Financial OfficerPhone:
765.497.8381jblumhoff@inotivco.com
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