8th Jun 2006 10:35
8 June 2006 Medical Solutions plc ("Medical Solutions" or "the Group") Annual General Meeting Sir Gareth Roberts, Chairman of Medical Solutions plc will be making thefollowing statement at the 2006 Annual General Meeting today:"Following the significant improvement in the Group's financial and operatingperformance during 2005, I am pleased to report that excellent progress hasbeen made during the early part of 2006.Trading updateWe stated in our 2005 Annual Report that we had targeted sales growth rates ofaround 20-25% for the year ending 31 December 2006 and I am delighted to reportthat, over the early part of the year, this is a target that we have exceeded.Our operating costs remain under control and our cash position has been wellmanaged.Pathology ServicesIn the UK Diagnostic Pathology business, progress during the early part of theyear has been excellent following the continued high demand experienced for ourservice offerings, including the Her 2 test, designed to establish whether ornot a patient suffering with breast cancer will respond to the drugHerceptinTM.Our Dubai business has performed extremely well with SCL continuing to benefitfrom high volumes under the labour medical testing programme carried out inconjunction with the UAE government. As planned, we have now established anadministrative office on the Dubai Healthcare City site.In our Drug Development Services division, we have invested in new equipment,such as the Circulating Tumour Cell ("CTC") technology, to complement ourexisting service offerings. We have signed a number of agreements with otherpharmaceutical and biotechnology companies to provide biomarker relatedstudies. In May, we announced our first CTC contract with an unnamed majorpharmaceutical company.Liquid Based CytologyThe Group's Liquid Based Cytology ("LBC") division continues to grow in linewith our expectations. We have announced a new agreement with Hereford andTelford Processing and Screening Laboratories Network and continue to expect toachieve well over 40% of the LBC market in England and Wales. We are alsoparticipating in two UK trials designed to establish the benefits of automatedcervical cancer screening.The Board is also pleased to announce that agreement has been reached withTripath Imaging, Inc. to extend the current exclusive distribution agreementwhich had been due to expire on 31 December 2008 until 31 December 2010.The Board believes that good progress has been made towards the achievement ofour short term aims and looks forward to updating shareholders furtherfollowing the release of our interim results for the six months ending 30 June2006.Update on planned exit from DubaiSince we announced our planned exit from Dubai, we have received a number offormal and informal offers from trade and private equity bidders to buy thebusiness. We have also explored the possibility of taking the Dubai businesspublic by seeking a listing on the Dubai stock market. However, the recentdownturn in world stock markets, and the Middle East in particular, has meantthat market conditions are currently not ideal for such an offering. The Boardis in advanced discussions with interested parties with a view to exiting theCompany's investment in the Dubai business and maximising value and certaintyfor shareholders. The Company will make a further announcement about thisplanned disposal in due course.As a consequence of the current situation, the debt for equity transactionbetween the Company and Welcare Hospital/Welcare World Health Systems Limitedwhich was announced in March is now expected to be completed in conjunctionwith the planned disposal.For further information:Medical SolutionsCharles Green/Neil Johnston 0115 973 9010Bell PottingerGeoff Callow/Chris Hamilton 020 7861 3232Notes to EditorsMedical Solutions is a provider of pathology-based products and services to thehealthcare and pharmaceutical sector with advanced technology in imageanalysis, virtual microscopy and high throughput quantitative proteinexpression and biomarker determination. The Group has operations in the UK andDubai.ENDMEDICAL SOLUTIONS PLCRelated Shares:
SBS.L