Enzo Biochem to Acquire New Facility for Manufacturing & Distribution to Advance Its Diagnostic & Therapeutic Growth Strategy
August 27 2018 - 8:30AM
Business Wire
Facility Will Enhance Enzo’s Ability to
Produce and Distribute Its Growing Portfolio of Molecular Assays,
Immunohistochemistry, Immunoassays and Immuno-oncology Products and
Services
Anticipates Significant Tax and Other
Incentives for Enzo’s Entire Farmingdale New York Campus
Enzo Biochem, Inc. (NYSE:ENZ), an integrated diagnostic and
therapeutics company, announced today that, as part of implementing
its growth strategy, it has entered into an agreement to purchase a
commercial facility with nearly 36,000 square feet in Farmingdale,
NY. The building is adjacent to the Company’s current Long Island
campus and enhances the infrastructure needed to produce and
distribute Enzo’s expanding low cost, diagnostic platform products
and related services. The Company’s platform development includes
automation-compatible reagent systems and associated products for
sample collection and processing through analysis.
In connection with the acquisition of the new facility, the
Company has Town of Babylon Industrial Development Agency (IDA)
commitments that will provide Enzo with significant multi-year tax
abatements and additional incentives with respect to its entire
Farmingdale campus.
The purchase of the facility for $6.0 million extends Enzo’s
Farmingdale, NY campus to nearly 101,000 square feet, complementing
the Company’s existing sites in Michigan, Switzerland, France and
Belgium. It will provide Good Manufacturing Practices (GMP) and ISO
compliant manufacturing and logistics space for Enzo’s diagnostics
and life science products business. Moreover, the new facility will
enhance space for GMP production of the Company’s development-stage
clinical candidates, including Enzo’s proprietary sphingosine
kinase 1 inhibitor, SK1-I, which is being investigated for
potential applications in oncology and autoimmune diseases.
The new facility and campus expansion represents another step
forward in Enzo’s strategy to develop and deliver affordable
automated open system platform and products and associated services
to address the cost-pressured clinical diagnostics marketplace. The
molecular diagnostic market is valued in excess of $5 billion and
contains several segments, such as Viral Load testing, Women’s
Health and HPV testing. Enzo has already received New York State
approval on a Women’s Health panel, and Enzo’s pipeline includes a
Viral Load panel and HPV screening for use on the Company’s
platforms. The campus expansion will facilitate Enzo’s efforts to
obtain FDA approval and CE marking-to-market as diagnostics its
approved laboratory developed tests (LDTs).
“Our strategy remains focused on offering the market quality,
affordable testing solutions to high cost, high volume market
segments,” said Barry Weiner, Enzo President. “At this point in
time, more than anything else, our customers need cost of goods
savings. To achieve this, we have taken common workflows and
applied Enzo’s innovative technical expertise to each platform part
in order to achieve integrative cost effective solutions.”
The Company’s continuing development activities are directed to
each step of the clinical testing process, from sample collection
and processing through analysis. The Company’s programs include
manufacturing each of the components required for each step in the
diagnostic process for integration into an open platform. Enzo’s
system solutions will enable clinical laboratories to more
effectively participate in the diagnostics market where declining
reimbursements and rigid costs from suppliers currently
prevail.
Building on prior progress in the molecular diagnostics and
immunoassay areas, Enzo recently announced the validation of three
clinically relevant, cost-efficient immunohistochemistry (IHC)
biomarker detection tests for charting the progression of various
cancers, especially in the field of women’s health. These tests
operate with the Company’s open system workflow and complement
Enzo’s strategy of introducing lower cost testing solutions to the
global IHC market that is projected to reach over $2 billion by
2021.
About Enzo Biochem
Enzo Biochem is a pioneer in molecular diagnostics, leading the
convergence of clinical laboratories, life sciences and
intellectual property through the development of unique diagnostic
platform technologies that provide numerous advantages over
previous standards. A global company, Enzo Biochem utilizes
cross-functional teams to develop and deploy products, systems and
services that meet the ever-changing and rapidly growing needs of
health care today and into the future. Underpinning Enzo Biochem’s
products and technologies is a broad and deep intellectual property
portfolio, with patent coverage across a number of key enabling
technologies.
Except for historical information, the matters discussed in this
news release may be considered "forward-looking" statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended and Section 21E of the Securities Exchange Act of 1934, as
amended. Such statements include declarations regarding the intent,
belief or current expectations of the Company and its management,
including those related to cash flow, gross margins, revenues, and
expenses which are dependent on a number of factors outside of the
control of the Company including, inter alia, the markets for the
Company’s products and services, costs of goods and services, other
expenses, government regulations, litigation, and general business
conditions. See Risk Factors in the Company’s Form 10-K for the
fiscal year ended July 31, 2017. Investors are cautioned that any
such forward-looking statements are not guarantees of future
performance and involve a number of risks and uncertainties that
could materially affect actual results. The Company disclaims any
obligations to update any forward-looking statement as a result of
developments occurring after the date of this press release.
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version on businesswire.com: https://www.businesswire.com/news/home/20180827005072/en/
Enzo Biochem, Inc.Steve Anreder,
212-532-3232steven.anreder@anreder.comorCEOcast, Inc.Michael Wachs,
212-732-4300mwachs@ceocast.com
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