ARTICLE | Company News

Warnex deal

January 2, 2012 8:00 AM UTC

Warnex will divest its Analytical Services division to an undisclosed private company for C$400,000 ($385,560) in cash, plus a cash payment equal to the working capital of the division upon closing, which it estimates will be C$700,000 ($674,730). Warnex will also receive a 15% stake in the private buyer and other undisclosed consideration. The division provides quality control services, including chemistry, chromatography, microbiology, method development and validation, and stability studies. Warnex, which provides laboratory services to the pharmaceutical sector, including bioequivalence and bioavailability studies, says it plans to use part of the proceeds from the deal to reduce its long-term debt. The deal is expected to close on Jan. 15. Details were not disclosed. ...