IBA SA : Update on Ongoing Discussions and Notice of Claims regarding IBA Molecular
Louvain-La-Neuve, Belgium, 7 October, 2013 - IBA (Ion Beam Applications S.A.) EURONEXT, the global high-tech leader in next generation radiation therapy and diagnostics equipment for the treatment of cancer, announces further business discussions as well as notice of claims from SK Capital, the co-owner of IBA Molecular.
As reported at the time of the half year results, SK Capital and IBA are currently in discussions regarding the future of its joint participation in IBA Molecular Compounds Development Sàrl, the company in charge of the development and licensing of new molecules.
In light of the recent disappointing progress in the development of new molecules by IBA Molecular Compound Development Sàrl, IBA questions the further financing of this activity. In reaction to this fair questioning, SK Capital has sent several new Notices of alleged claims to IBA for an approximate amount of EUR 17 million. These notices of claims cover issues including alleged breaches of the acquisition contract of IBA Molecular.
IBA strongly rejects all of these assertions, will claim damages for reckless demands and is investigating counter notices of claims for various breaches committed by SK Capital.
The parties have not yet initiated legal proceedings and are pursuing discussions in view of a global settlement agreement and on the future of IBA Molecular Compounds Development Sàrl.
IBA cannot exclude impacts on its 2013 financial statements (mostly non cash). Further guidance on this impact will be given as soon as the Company has an update.
Olivier Legrain, Chief Executive Officer of IBA, commented: "We are disappointed and surprised by the aggressive position taken once again by SK. Our goal is and has always been to maximise shareholder value for both partners. We intend to strongly refute these claims and will update the market as soon as further details on the impact of these claims are known and as soon as the future of the joint venture is clarified."
IBA (Ion Beam Applications S.A.) is a cancer diagnostics and treatment equipment company, and the worldwide technology leader in the field of proton therapy, the most advanced form of radiotherapy available today.
The Company's primary expertise lies in the development of next generation proton therapy technologies that provide oncology care providers with premium quality services and equipment. IBA's proton therapy solutions are scalable and adaptable, offering universal full scale proton therapy centers as well as next generation compact, single room solutions. IBA also focuses on the development and supply of dosimetry solutions for Quality Assurance of medical equipment and increased patient safety as well as particle accelerators for medical and industrial applications.
Headquartered in Belgium and employing more than 1,200 people worldwide, IBA currently has installed systems across Europe and the US and is expanding into emerging markets. The Company is focused on building sustainable global growth for investors, providing solutions in the fight against cancer.
IBA is listed on the pan-European stock exchange EURONEXT. (IBA: Reuters IBAB.BR and Bloomberg IBAB.BB) and more information can be found at: www.iba-worldwide.com
For more information please contact
Chief Financial Officer
Tel: +32 10 47 58 90
Vice-President Corporate Communication
+32 10 47 58 90
For media and investor enquiries:
Consilium Strategic Communications
Mary-Jane Elliott, Amber Bielecka, Matthew Neal
+44 (0) 207 920 2354
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
Source: IBA SA via Thomson Reuters ONE
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