Celadon Pharmaceuticals Regulatory News (CEL)

19 Sep 2006 07:00

Celsis International PLC19 September 2006 CELSIS INTERNATIONAL PLC Goodwill Tax Benefit On acquisition of Invitro Technologies inc 19 September 2006: Celsis International plc ("Celsis" or the "Company"), thelife sciences products and services company, today announces that it hasexercised its right under the stock purchase agreement in connection with theacquisition of In Vitro Technologies, Inc. (IVT), to make an irrevocableelection under Section 338(h)10 of the United States Internal Revenue Code 1986,as amended. The filing of this election is designed to secure a tax benefit of $8.26 millionover the next 15 years as a result of the $24.3 million goodwill arising fromthe acquisition of IVT, which closed on July 20th of this year. The electionwill insure that the first $1.62 million of IVT profit per year will not be taxed for the next 15 years. This $8.26 million tax benefit has an approximate net present value to Celsis of $5 million (using a 10% weighted average cost of capital). Christian Madrolle, Finance Director of Celsis International plc, commented: "Whilst we always expected to realise the tax benefit of this transaction andhad factored it into our calculations of IVT's value, we are neverthelesspleased to be able to confirm the securing of this benefit today. Itsignificantly improves the economics of the IVT acquisition and enhances ourconfidence in the value that we expect it to generate for Celsis shareholders." Enquiries: Celsis International plc Tel: 01638 600 151Christian Madrolle, Finance DirectorJenny Parsons, Corporate Communications Financial Dynamics Tel: 020 7831 3113Anna KeebleDavid Yates Notes to editors Celsis International plc Celsis International plc provides value enhancing products and services to thepharmaceutical, biopharmaceutical, and consumer products industries through itsthree business areas; rapid detection, analytical services and in vitrotechnologies. The company is listed on the London Stock Exchange (CEL.L). In addition to ensuring product quality and safety for consumers, each divisionhas the capacity to deliver substantial cost savings to Celsis' customers.Using proprietary technology, the rapid detection business is the world leaderin the provision of diagnostic systems for the rapid detection of contamination. By reducing the time it takes to test and release raw materials and finishedgoods to the market place, Celsis technology facilitates increased manufacturingproductivity and improved supply chain management. The analytical servicesdivision provides outsourced laboratory testing services to pharmaceutical andbiopharmaceutical companies to ensure the stability and chemical composition oftheir products. In Vitro Technologies (IVT) supplies in vitro testing productsand services to the pharmaceutical and biotechnology industries. IVT's in vitroproducts and services screen drug compounds early in the discovery process,thereby reducing the time and cost of drug development. Further information can be found on its website at www.celsis.com. This information is provided by RNS The company news service from the London Stock Exchange