April 24, 2002
AmeriPath Acquires California Diagnostic Laboratory
- Establishes Presence in Southern California -
Riviera Beach, FL, April 24, 2002 – AmeriPath, Inc. (Nasdaq:
PATH), a leading national provider of cancer diagnostics, genomic,
and related information services, today announced the acquisition
of Empire Pathology, a full service anatomic pathology laboratory
located in Irvine, California.
The laboratory, now referred to as AmeriPath Southern California,
will provide the necessary resources to enter the large southern
California market. The lab has been in operation for over 15 years
and specializes in providing cytology and anatomic pathology (including
dermatopathology) services to customers throughout southern California
and nationally through a sub contract arrangement with a major
national clinical laboratory company. AmeriPath Southern California
employs a staff of over 50. AmeriPath plans to invest in the areas
of marketing and information technology to greatly expand the retail
base of the laboratory migrating away from the sub contract work
with the national clinical laboratory.
James C. New, Chairman and Chief Executive Officer commented, “Over
the years we have mindfully focused our expansion strategy east
of the Rockies. This acquisition creates our initial foothold in
one of the largest healthcare markets in the United States. This
lab, coupled with our existing regional footprint, broadens our
capacity to be a national provider of anatomic pathology services,
with a focus on local and regional delivery. Once we have made
our investments in this lab, there exists tremendous opportunities
to expand cytology and anatomic pathology into a large retail marketplace
and improve operating margins. Mr. New continued, “This laboratory
represents a rare critical mass of quality cytology capacity that
is difficult to replicate in today’s tight labor market.
This key asset will provide AmeriPath facilities with additional
capacity to fuel growth while allowing us to enter a new market.”
AmeriPath is a leading national provider of cancer diagnostics,
genomics, and related information services. During 2001, AmeriPath
diagnosed approximately 4.0 million tissue biopsies, and interpreted
approximately 2.1 million Pap smears. The company’s extensive
diagnostics infrastructure includes over 400 pathologists and doctorate-level
scientists providing services in over 40 independent pathology
laboratories, more than 200 hospitals, the Center for Advanced
Diagnostics (CAD) and Dermpath Diagnostics, a division of AmeriPath.
CAD provides specialized diagnostic testing and information services
including Fluorescence In-Situ Hybridization (FISH), Flow Cytometry,
DNA Analysis, Polymerase Chain Reaction (PCR), Molecular Genetics,
Cytogenetics and HPV Typing. AmeriPath has over 60 board-certified
dermatopathologists supporting Dermpath Diagnostics, one of the
country’s leading providers of dermatopathology services
in the growing skin diagnostic market. Additionally, AmeriPath
provides clinical trial and research development support to firms
involved in developing new cancer and genomic diagnostics and therapeutics.
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The statements contained in this press release
may include "forward-looking
statements'' within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements - which are sometimes
identified by words such as "may", "should", "believe'', "expect'', "anticipate'', "estimate" and
similar expressions and which include any financial or operating
estimates, forecasts or projections - are subject to a number of
risks and uncertainties, many of which involve factors or circumstances
that are beyond the Company's control. These risks and uncertainties
could cause actual results to differ materially from results anticipated
by forward-looking statements. These risks and uncertainties include:
the extent of success of the Company's operating initiatives and
growth strategies; ability to manage growth; access to capital
on satisfactory terms; general economic conditions; terrorism or
an escalation of hostilities or war; competition and changes in
competitive factors; federal and state healthcare regulation (and
compliance); reimbursement rates under government and third party
healthcare programs and the payments received under such programs;
changes in coding; changes in technology; dependence upon pathologists
and customer contracts; the ability to attract, motivate, and retain
pathologists; labor, technology and insurance costs; marketing
and promotional efforts; the availability of pathology practices
in appropriate locations that the Company is able to acquire on
suitable terms or develop; and the successful completion and integration
of acquisitions (and achievement of planned or expected synergies).
The forward-looking statements in this press release are made as
of the date hereof based on management's current beliefs and expectations,
and the Company undertakes no obligation to update or revise any
such statements. Further information regarding risks, uncertainties
and other factors that could affect the Company's financial or
operating results or that could cause actual results to differ
materially from those expected, estimated or anticipated are included
in the Company's annual, quarterly, and other reports and filings
with the SEC.
