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LEECO DIAGNOSTICS ANNOUNCES RESTRUCTURING AND MERGER WITH ENDOGEN; SECOND QUARTER RESULTS

 LEECO DIAGNOSTICS ANNOUNCES RESTRUCTURING AND MERGER WITH ENDOGEN;
 SECOND QUARTER RESULTS
 SOUTHFIELD, Mich., Aug. 19 /PRNewswire/ -- Leeco Diagnostics, Inc. (NASDAQ: LECO) announced today its results for the second quarter and first six months of 1992.
 LEECO DIAGNOSTICS, INC.
 Three months ended June 30 1992 1991
 Total revenues $ 4,533,913 $ 5,214,767
 Total income (loss) 80,640 (861,853)
 Net income (loss) per share 0.01 (0.15)
 Wtd. avg. number of shares outstg. 5,711,041 5,729,074
 Six months ended June 30 1992 1991
 Total revenues $ 9,397,270 $11,073,538
 Total income (loss) 174,449 (1,259,644)
 Net income (loss) per share 0.03 (0.22)
 Wtd. avg. number of shares outstg. 5,711,041 5,729,074
 Leeco's total revenues for the six months ending June 30, 1992 were $9,397,270, a decrease of 15.1 percent from the corresponding period of 1991. Product sales for 1992 relate exclusively to Technogenetics product sales, which increased 9.1 percent compared to the same period of last year.
 The operating income, before interest and miscellaneous expenses, for the six months period ended June 30, 1992 was $978,927 compared to an operating loss of $497,920 in the corresponding period of 1991. The operating results for 1992 include all operating activities of Technogenetics and only those Leeco expenses necessary to seek new business opportunities and to complete the phasing out of the company's current U.S. business.
 Due mainly to the decrease of the net interest expenses and the improvement in operating income, the company experienced a net income of $174,449 for the six month period ended June 30, 1992 compared to a net loss of $1,259,644 in the corresponding period of 1991. The improvement in operating income results primarily from the decrease of operating expenses at Leeco already accrued as part of the $5 million restructuring charge taken in 1991.
 Leeco also announced today that agreements were reached among Leeco Diagnostics, Recordati International Holding S.A. and Endogen, Inc. regarding a series of transactions which will result in the stockholders of Leeco, other than Recordati (the majority shareholder), receiving a substantial interest in a new public company comprising the business of Endogen, Inc. Pursuant to these agreements, the ownership of Leeco will first be restructured and Leeco will become a subsidiary of a newly formed holding company. The shares of Leeco currently outstanding will be exchanged for and converted into shares of the holding company, which will become the publicly traded entity.
 Thereafter, Recordati, will acquire from the holding company all the shares of the subsidiary in exchange for, among other things, $3.5 million in cash and the surrender of all of Recordati's stockholding in the new holding company, representing approximately 53 percent of the outstanding stock. As a result, Recordati will assume the assets and liabilities, of Leeco and will no longer hold any interest in the restructured public company.
 As a third and final step, the new holding company will be merged with Endogen, Inc. which will become the successor publicly traded company. Upon the merger, the existing public shareholders of Leeco will, in the aggregate, own approximately 40 percent of the stock of Endogen, Inc. after the merger, and the existing stockholders of Endogen, Inc. will hold the balance of 60 percent.
 The terms of these transactions were negotiated on behalf of Leeco by a special committee of directors unaffiliated with Recordati. The special committee retained the services of an independent financial advisor and its own outside legal counsel. The sale of the subsidiary to Recordati is subject to the receipt of a fairness opinion from the independent financial advisor.
 All parties expect to consummate the three transactions as soon as practicable, subject to the obtaining of necessary stockholder approvals of each transaction of other customary conditions.
 Leeco Diagnostic, Inc. and its Italian subsidiary, Technogenetics, research, develop, manufacture and sell clinical in-vitro immunodiagnostic test kits. In December 1991, Leeco announced its intention to discontinue its United States operations by closing its Southfield facility and to seek new business opportunities.
 Endogen, Inc. researches, develops and manufactures biotechnology reagents and immunoassay test kits which are sold worldwide to universities and research laboratories. Endogen's products include enzyme immunoassay (EIA) kits for the measurement of human and mouse cytokines and cytokine reagents for research use. Cytokines, which are the topic of intense research in the medical and biotechnology communities, play a key role in the regulation of the immune system. Endogen's test kits are used for measurement of minute quantities of interleukins, interferons and growth factors in serum, plasma or cell cultures. Endogen's product lines comprise 12 kits and the company has plans to introduce several additional new kits in the next 12 months.
 Endogen, a closely held company based in Boston commenced commercial operations in 1985. Its product sales grew by 50 percent in its fiscal year ended May 31, 1992 to $1.85 million. The funds available to Endogen from the transaction with Leeco, expected to be approximately $3 million net of expenses, are intended to be used, among other things, to develop cytokine tests for the clinical and laboratory markets in the growing areas of transplantation immunology and therapeutic drug monitoring.
 -0- 8/19/92
 /CONTACT: Rod N. Raynovich, president and CEO of Leeco Diagnostics, 313-353-2620/
 (LECO) CO: Leeco Diagnostics, Inc. ST: Michigan IN: AUT SU: RCN


TS-SH -- NY014 -- 1312 08/19/92 11:34 EDT
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