IDT TO ACQUIRE RESEARCH UNIT.

Australian pharmaceutical manufacturing and drug development company, Institute of Drug Technology Australia Limited (ASX: IDT) has entered into an agreement to acquire from Mayne the business of CMAX Pty Ltd, an Adelaide-based clinical trials research unit. Finalization of the transaction is subject to some conditions.

The CMAX business provides Phase 1 clinical support services on a contract basis to a number of Australian and international pharmaceutical and biotechnology companies. Clinical studies are required as part of the rigorous assessment of new drugs to ensure necessary high levels of safety and efficacy. Established in 1993 by FH Faulding Limited, CMAX originally provided early clinical phase support for Faulding's generic drug development programs.

"We anticipate that the CMAX business will add in excess of $4 million (+20%) to IDT's annual revenue. The acquisition is also expected to make an immediate positive contribution to earnings and will contribute significantly in the future," said Dr Graeme Blackman, chairman and managing director of IDT.

The CMAX facilities operate from the Royal Adelaide Hospital and include a dedicated hospital ward, specialized analytical chemistry facilities and more than 20 highly skilled and experienced staff. The unit has been inspected by the US Food and Drug Administration (FDA) for compliance with international Good Clinical Practice and Good Laboratory Practice and operates at the high quality standards required for international drug development.

"The acquisition of CMAX significantly strengthens IDT's capacity to provide a range of drug development services to assist both local and international companies in the commercialization of new medical discoveries," said Dr Blackman.

"Since IDT already provides a range of consulting services and is not in direct competition with potential clients, there is considerable scope to expand this business. The need to provide early phase clinical development capabilities is internationally recognized and the CMAX business is ideally placed to capture this opportunity. The synergies that will flow from the merging of CMAX with IDT's other early stage drug development expertise will result in a world class unit that is expected to attract new clients to IDT."

The purchase price, which has not been disclosed, will be funded from existing IDT cash reserves.

For information, contact Dr. Graeme L Blackman chairman and managing director Institute of Drug Technology Australia Limited, 45 Wadhurst Drive, Boronia, Victoria 3155; Telephone: [phone]

Company Background

Institute of Drug Technology Australia Limited (IDT) is a leading developer and manufacturer of active pharmaceutical ingredients for local and international markets. The company also provides a comprehensive range of consultancy, research and development, and analytical services to the pharmaceutical and biotechnology sectors.

Established in 1975, IDT is an Australian-owned public company, listed on the Australian Stock Exchange and employing over 100 highly qualified scientific and support staff. The company has extensive modern manufacturing facilities and laboratories in Melbourne and is licensed by the Australian Therapeutic Goods Administration (TGA) and the United States Food and Drug Administration (FDA) for production of active pharmaceutical ingredients. The company has become especially well known internationally for its dedicated facilities for the development and production of anticancer drugs.