Commonwealth Laboratories, Inc. Announces Agreement with Valeant Pharmaceuticals for the Acquisition of Commonwealth’s U.S. and Canadian Business

Agreement represents Commonwealth’s continued pattern of substantial growth in the diagnostic space

Deal allows for rapid expansion in critical markets

SALEM, Mass.--()--Commonwealth Laboratories, Inc. (“Commonwealth”) announced today that it has reached an agreement with Valeant Pharmaceuticals International, Inc. (“Valeant”) for the acquisition by Valeant of Commonwealth’s business in the United States (U.S.) and Canada. This includes rights to IBSchek™, a breakthrough blood test designed to help physicians quickly and reliably diagnose irritable bowel syndrome (IBS). Commonwealth’s existing management team will remain in place and will continue to drive the strategic direction of the company. The deal provides for an up-front purchase price to be paid by Valeant on closing, with the opportunity for additional sales-based milestones payments. The completion of the transaction is subject to customary closing conditions. Commonwealth’s current diagnostic portfolio will be offered outside of the U.S. and Canada by Commonwealth Diagnostics International, Inc., an unaffiliated company formed by Commonwealth’s current owners.

“We are excited to align with Valeant. This partnership allows Commonwealth to effectively scale our product line, including our ground-breaking new blood test for irritable bowel syndrome, IBSchek, utilizing Valeant’s vast resources and industry experience,” said Craig Strasnick, Chief Operating Officer at Commonwealth. “We truly believe this move will be a driving force in helping the millions of Americans and Canadians affected by irritable bowel syndrome and other disorders within gastrointestinal (GI), as well as additional medical disciplines, as we continue to expand upon our portfolio. This path forward gives Commonwealth the ability to grow the business on an accelerated trajectory. It is an exciting time for our company and we look forward to, what we know, will be a very bright future.”

Commonwealth has most recently developed IBSchek, a test that uniquely addresses the needs of IBS patients suffering with GI discomfort by either confirming an IBS diagnosis, or potentially eliminating it as a cause of symptoms. IBSchek is a simple ELISA based test that can be conducted via standard blood draw in a healthcare provider’s office. Results are reported within 24 hours of the patient’s blood specimen being received by Commonwealth for analysis. Commonwealth launched IBSchek in May of 2015 during Digestive Disease Week. More information on IBSchek can be found at http://www.IBSchek.com.

IBS is the most common gastrointestinal disorder in the U.S., affecting nearly 40 million Americans and an estimated 5 million Canadians. IBS affects approximately 15% of the world’s total population. It is more common in women than in men and the symptoms can be very difficult to diagnose.

Additional resources, including company and IBSchek product logos, an infographic and a video of how IBSchek works, can be found in our Digital Newsroom.

About Commonwealth Laboratories, Inc.

Headquartered in Salem, Massachusetts, Commonwealth Laboratories, Inc. is a state and federally licensed, FDA-registered, independent diagnostic laboratory offering specialized diagnostic tests to aid in the diagnosis of a variety of functional gastrointestinal disorders. The company executes a service-based approach and its core philosophy is to create customized operational solutions aimed at accessibility and simplicity in diagnostics. Commonwealth’s scalable, efficient and clinically sophisticated platform provides the resources healthcare providers need to quickly and accurately make an informed diagnosis for their patients.

For more information about IBSchek™, please call (877) IBS-CHEK (427-2435) or visit http://www.IBSchek.com. For information regarding any other services provided by Commonwealth, please call (800) 292-9019, visit www.hydrogenbreathtesting.com, or email inquiries@commlabsinc.com.

About IBSchek™

IBSchek™ is based on the scientific findings of Mark Pimentel, MD, which showed that anti-vinculin and anti-CdtB are effective biomarkers for the diagnosis of IBS. The test utilizes a proprietary, ELISA-based blood test, providing results within 24 hours of sample receipt at Commonwealth. Its turnkey approach is office-friendly and assists in providing the healthcare provider with the objective data they need to make an informed diagnosis, while also providing validation for the symptoms and associated discomfort that patients have been experiencing for extensive periods of time.

About IBS

IBS is a gastrointestinal disorder in which symptoms are due to dysfunction of the gut. There are three different types of IBS, with an equal number of people in each category: IBS with constipation (IBS-C), IBS with diarrhea (IBS-D), and IBS with alternating constipation and diarrhea (IBS-M). The symptoms associated with IBS-C include stomach pain and discomfort, bloating, abnormally delayed or infrequent bowel movement, or lumpy/hard stool. The symptoms associated with IBS-D include stomach pain and discomfort, an urgent need to move your bowels, abnormally frequent bowel movements, or loose/watery stool.

IBS is the most common gastrointestinal disorder in the U.S., affecting approximately 40 million Americans. It is estimated that at least 5 million Canadians suffer from IBS, with an additional 120,000 people developing the condition every year. IBS affects about twice as many women as men and is most often found in people younger than age 45.

Contacts

Centron PR
Abhishek Basu, 646-722-8820
abasu@centronpr.com
or
Sara Campbell, 646-722-8812
scampbell@centronpr.com

Contacts

Centron PR
Abhishek Basu, 646-722-8820
abasu@centronpr.com
or
Sara Campbell, 646-722-8812
scampbell@centronpr.com