WAYNE, PA, December 6, 2004 — Safeguard Scientifics, Inc. (NYSE: SFE) announced today that it had completed the acquisition of the business and substantially all of the assets of Laureate Pharma L.P. of Princeton, NJ for approximately $29.5 million. Laureate Pharma is a bioprocessing and drug delivery services company dedicated to supporting the development and commercialization of new pharmaceuticals and diagnostics.
Anthony L. Craig, President and Chief Executive Officer of Safeguard, said, “The biopharmaceutical services market in the U.S., according to industry research, is projected to grow at 20% per year over the next several years. Laureate Pharma is ideally positioned to capitalize on the growing trend in the biopharmaceutical industry toward outsourcing.”
Michael F. Cola, Safeguard’s Group President, Life Sciences, said, “Laureate Pharma is a strong competitor with significant existing capacity to serve biotech and pharmaceutical firms needing fast, high-quality production of their products as they go through clinical trials and into the commercial market. We look forward to helping them expand their market presence and address the challenges of scaling the business.”
Established in 2002, Laureate Pharma had 2003 revenues of approximately $7.4 million. In the first nine months of 2004, Laureate Pharma’s revenues were $8.1 million. The company operates two facilities in New Jersey and employs about 70 people. The management and staff of Laureate Pharma have significant technical and managerial experience in the biopharmaceutical industry.
Robert J. Broeze, Ph.D., President of Laureate Pharma, said, “With Safeguard’s support, we are looking forward to broadening our presence in the biopharmaceutical marketplace, and to expanding the menu of bioprocessing and drug delivery services we offer to our customers. Our employees are enthusiastic about Laureate Pharma becoming a Safeguard company and are dedicated to increasing customer and shareholder value.”
In addition to the capital it invests in its companies, Safeguard provides a wide range of operating and managerial support and expertise. In connection with this acquisition, Safeguard has provided a direct line of credit, and arranged a supplemental external credit facility for Laureate Pharma’s working capital needs.
Laureate Pharma (www.laureatepharma.com) is Safeguard’s first major life sciences acquisition since the Company began focusing primarily on the life sciences and information technology sectors. Safeguard also holds a majority ownership position in ChromaVision Medical Systems (NASDAQ: CVSN), a leading provider of specialized diagnostic and laboratory services and technologies for both clinical and drug development applications.
The business will operate as Laureate Pharma, Inc., a wholly owned subsidiary of Safeguard. The acquisition is not anticipated to have a significant impact on Safeguard’s 2004 financial results.
About Safeguard
Safeguard Scientifics, Inc. (NYSE: SFE) is a committed strategic growth partner for companies in the Time-to-Volume stage of development. Time-to-Volume companies are those that are generating revenues from a commercially viable product or service, but are facing new challenges as they scale their businesses to meet market opportunities. Focused primarily on the information technology and life sciences sectors, Safeguard generally acquires majority ownership interests in companies at this stage of growth. In addition to expansion capital, Safeguard provides its companies a wide range of operating and managerial expertise to drive their successful growth to become market leaders. For more information about Safeguard and its strategy, visit www.safeguard.com
Contact:
Safeguard Scientifics
Janine Dusossoit
Vice President, Investor Relations
(610) 293-0700
Laureate Pharma, Inc.
John Morris
Vice President, Controller & Strategic Planning
1.608.916.3570