BioReference Laboratories, Inc. (NASDAQ: BRLI) announced that it has acquired the laboratory operations of Diagnostic Pathology Services, Inc. "DPS" of Clarksburg, Maryland offers specialized testing in the areas of hematopathology, cytology and anatomic pathology and expects revenues for the current calendar year to be in excess of $3.5 million. The acquisition will bring to BRLI some key additions to its technical and professional staff and extend service and support to its customers in the Middle Atlantic States currently served by DPS in Maryland, Virginia, and Washington DC.
BioReference also announced completion of the GeneDx acquisition first announced on August 29, 2006.
Marc Grodman, M.D., CEO of BRLI, stated, "BioReference completed the acquisition today of a highly complementary and synergistic laboratory in Maryland that will expand our capacity and geographic presence in our focused hematopathology, cytology and anatomic pathology areas of service. DPS offers its customers a subset of the testing services that we offer at BioReference. Current DPS clients will now have significantly more tests and services accessible as we provide greater resources than were previously available to them. The cytology services that DPS offers will be greatly enhanced by participation in our Women's Health Initiative. Jim Sundeen, MD, the founder and owner of DPS is a well-respected pathologist who we welcome to our professional staff. His technical expertise and dedication to patient care fits well into our GenPath professional culture and will play a meaningful role in building on what he has created in the Middle Atlantic region. This acquisition is a perfect fit for our esoteric business model and should be become accretive during fiscal year 2007. The decision to purchase the business was based on the synergies we were able to identify since we believe that our highly trained, highly motivated sales and support team can greatly enhance the service, support and growth of the business. We further believe that we can have immediate impact on the financial performance of DPS with our superior purchasing capability, our ability to perform tests that previously had to be sent out to reference laboratories and our efficient operating procedures."
Jim Sundeen, M.D., stated: "I have a great deal of respect and admiration for the business that BioReference has been able to build in our specialty areas. We understand the difficult process of building a specialized laboratory and no one has done it better than BioReference. We look forward to being part of such a successful, highly respected laboratory. I especially look forward to working with Dr. Weisberger and the great staff of professionals that he has assembled at BioReference and to becoming part of Dr. Grodman's vision of realizing the full potential that laboratories can have on patient care. The business that we have built at DPS, when combined with the great technology, service and support of BioReference, will become the successful specialized laboratory that I have envisioned for many years."
Dr. Grodman added: "Our recent acquisition of GeneDx has shown our intention to expand our expertise into the frontier arenas of diagnostic testing. This acquisition of DPS shows our resolve to grow and expand our already successful operations in esoteric diagnostic testing. Our Women's Health Initiative has been highly successful over the past few months and DPS serves a cytology customer base that will greatly appreciate and understand the attention that we are paying to women's healthcare. Our sales force is excited about the additional opportunities that this acquisition will open for us in the Middle Atlantic states. We have spent several years building the platform that will enable us to grow. Our recent acquisitions of GeneDx and DPS are evidence that the platform is now ready for the next level of growth and expansion."
About BioReference Laboratories, Inc.
The Company is the largest independent regional clinical laboratory in the Northeast and has major market positions in physician offices, nursing homes and correctional institutions. The Company is a full service clinical laboratory with specialty capability, especially in the areas of genomics, oncology, correctional health, and complimentary medicine. PSIMedica, a business unit of the Company, is a clinical knowledge management (CKM) organization offering an array of information solutions for reducing healthcare costs and improving quality performance that are based on a flexible, scalable software analytical engine that utilizes all available source information, including claims data, enrollment data, prescription data and laboratory data. The Company provides a comprehensive connectivity solution to physicians as well as other laboratories, which includes laboratory reporting and ordering, as well as laboratory to physician communications and cumulative reporting, through CareEvolve, its web-based healthcare portal.
Statements included in this release that are not historical in nature, are intended to be, and are hereby identified as "forward-looking statements". Statements looking forward in time are included in this release pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks and uncertainties that may cause the Company's actual results in future periods to be materially different from any future performance suggested herein.
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