- Goal to Increase Profitability in Core Businesses and Accelerate R&D
Programs -
WEST BRIDGEWATER, Mass., July 22 /PRNewswire/ -- Boston Biomedica, Inc. (Nasdaq: BBII) an infectious diseases management company, today announced a reorganization of Company operations with the goals of increasing core business profitability and accelerating BBI's research and development programs. This reorganization, effective August 1, 1999, involves two major components. The first is a realignment of the Company's senior management. Kevin W. Quinlan, BBI's current Chief Financial Officer, will be promoted to the position of President and Chief Operating Officer and will focus on the Company's core businesses. Richard T. Schumacher, BBI's founder, will remain Chairman and Chief Executive Officer, responsible for the Company's overall strategic direction while also assuming direct operational responsibility for the Company's R&D programs in pressure cycling technology (PCT) and drug discovery.
The second component of BBI's reorganization involves the transition of each of the Company's four core areas of operation into its own distinct business unit, focused on its own market and profit objectives and led by an onsite Senior Vice President/General Manager with revenue and profit responsibilities. The heads of each unit will report directly to Mr. Quinlan, who will report to Mr. Schumacher. To provide the entrepreneurial freedom best suited for innovative and productive research and development efforts, BBI's PCT and drug discovery programs will operate outside of the Company's business units, under the direction of Mr. Schumacher.
"BBI has united four businesses in the areas of diagnostics, clinical laboratory testing, contract research, and instrument design and development with two cutting-edge research programs in pressure cycling technology and drug discovery," commented Mr. Schumacher. "With this reorganization, we are focusing our resources on achieving continued success in both our core businesses and our research and development activities. Kevin Quinlan's extensive expertise in operations and finance will be focused specifically on increasing the Company's profitability through its core businesses, and I want to welcome him in his new role. At the same time, BBI is committed to accelerating our R&D programs, which we believe represent potential breakthroughs for the detection and treatment of infectious diseases, and I will now be able to play a much larger role in this effort. I look forward to reporting on our progress in the months ahead."
After hearing about the reorganization plan, Alan Tuchman MD, Senior Health Care Analyst at Oscar Gruss & Son, who conducts research on BBI, stated "Segregating the varied but valuable expertise of Mr. Schumacher and Mr. Quinlan is an excellent strategy for BBI at this time. The Company will benefit from Mr. Schumacher's successful entrepreneurial track record by enabling him to focus on pressure cycling and drug development while Mr. Quinlan's financial and operational expertise can be channeled towards increasing the Company's profitability."
Boston Biomedica, Inc. is an infectious diseases management company providing products and services for the detection and treatment of infectious diseases such as HIV, Lyme Disease, Hepatitis, and other pathogens. The Company has four business units: (1) BBI Diagnostics, focused on manufacturing and selling quality control and other diagnostic products to increase the accuracy of in-vitro diagnostic tests, (2) BBI Clinical Laboratories, focused on providing specialty laboratory testing services in infectious diseases, (3) BBI Biotech Research Laboratories, focused on providing R&D support for the other BBI business units as well as contract research services for third parties, and (4) BBI Source Scientific, focused on developing laboratory and diagnostic instruments. In addition, the Company is pursuing research and development programs in the areas of pressure cycling technology (PCT) and drug discovery, with the goal of introducing new solutions for the detection and treatment of infectious diseases.
Statements contained in this news release that state the Company's or
management's intentions, hopes, beliefs, expectations or predictions of the
future are "forward-looking" statements. It is important to note that the
Company's actual results could differ materially from those projected in such
forward-looking statements. Factors that could cause actual results to differ
from those projected include the possibility that due to unforeseen
management, financial, technical, and other difficulties, reorganization of
the Company's corporate structure and management may not lead to increased
profitability or R&D program acceleration. The Company may not be able to
develop its research and development programs into commercially successful
products, or such development may take longer than currently expected.
Additional information concerning factors that could cause actual results to
differ materially from those in the forward-looking statements is contained
from time to time in the Company's SEC filings, including but not limited to
the Company's report on Form 10-Q for the period ended March 31, 1999. Copies
of this document may be obtained by contacting the Company or the SEC.
SOURCE Boston Biomedica, Inc.
CONTACT: Richard T. Schumacher, Pres. & CEO, or Kevin W. Quinlan, CFO, or William R. Prather, M.D., Sr. VP Business Dvlp. of Boston Biomedica, Inc., 508-580-1900, or fax, 508-580-1110
Web site: www.bbii.com