Business, diagnostics

Inverness Medical Innovations and Procter & Gamble set up consumer diagnostics company

30 May 2007

Waltham, Mass. and Cincinnati, USA. Inverness Medical Innovations, Inc. (AMEX:IMA) and The Procter & Gamble Company (NYSE:PG)  have completed their previously announced deal to form a 50/50 joint venture for the development, manufacturing, marketing and sale of existing and to-be-developed consumer diagnostic products, outside the cardiology, diabetes and oral care fields.

The new company, SPD Swiss Precision Diagnostics GmbH, will be headquartered out of Geneva, Switzerland and focus on the development, manufacture and marketing of rapid at-home diagnostic products. SPD will be the world's leading provider of home pregnancy tests and fertility/ovulation monitoring products, with brands like Clearblue, PERSONA, Accu-Clear, Fact Plus and Clearplan.

Inverness contributed its related consumer diagnostic assets, other than its manufacturing and core intellectual property assets, to the joint venture, and P&G acquired its interest in the joint venture for a cash payment of approximately US$325m.

"We are enthusiastic about the potential of the new company," said Hilde Eylenbosch, Chief Executive Officer of SPD, who has joined the new management team from Inverness. "As we have progressed in our work to close, we have already started to see synergies that will allow us to become an increasingly important player in the growing self-care market," she concluded.

"This is a compelling strategic transaction and an excellent opportunity for P&G, Inverness and our business partners," said Riccardo Guitart, Chief Financial Officer of SPD, who has joined the new management team from P&G. "Together we are strongly committed to growing this business so that consumers have access to efficient & accurate at home diagnostics."

SPD Swiss Precision Diagnostics GmbH, which has a total of over 160 employees, will have its head office in Geneva, as well as a site in Bedford, UK.

Professional diagnostics will continue to be managed exclusively by Inverness Medical Innovations, Inc.

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