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Clarient & DakoCytomation agreement Print E-mail
Written by Peter Høgsted   
Jul 19, 2005 at 11:53 AM

Partnership Creates Advanced Cancer Diagnostics System, Global Distribution Network

SAN JUAN CAPISTRANO, Calif., and GLOSTRUP, Denmark, July 19 -- Clarient Inc. (Nasdaq: CLRT), a cancer diagnostics services and technology company, and DakoCytomation, one of the world's leading providers of cancer diagnostic tests and automated testing equipment, today jointly announced the signing of a five-year Distribution and Development Agreement that allows DakoCytomation to distribute Clarient's digital cellular imaging and analysis system, called the Chromavision Automated Cellular Imaging System (ACIS), as an adjunct to DakoCytomation's suite of automated diagnostics equipment.

The agreement, based on a Letter of Intent between the two companies previously announced on June 9, 2005, enables DakoCytomation to begin distributing ACIS in North America in September 2005 and eventually expand sales globally, covering more than 70 countries worldwide. The agreement also contemplates that the companies will begin developing more advanced integrated cancer diagnostics solutions and invest in the development of a next generation system.

Through this partnership, DakoCytomation's market leading staining systems will be marketed with Clarient's proven image analysis technology to help pathologists and physicians make diagnostic and therapeutic decisions. Accurate testing is a crucial factor in determining the appropriate therapy and prognosis of a patient in the fight against cancer, said Jes Ostergaard, President and CEO of DakoCytomation.

"This partnership supports our strategy of expanding the cancer diagnosis market with new, sophisticated system solutions," said Ostergaard. "With the growing number of targeted therapies now available, it is even more important for doctors to identify the best treatment for an individual cancer patient. For this reason, advanced diagnostic systems are an essential tool to characterize and classify specific types of cancer."

Ron Andrews, President and CEO of Clarient, Inc., said that the Company anticipates that the partnership will result in incremental placements over the term of the contract.

"We believe this combination of two leaders in our respective markets will allow us to set the pace and increase our penetration in the expanding field of integrated diagnostic systems solutions," Andrews said. "DakoCytomation has a proven global sales force that can leverage the benefits of the two companies' product lines in world markets. Joining forces allows us to use our synergies as we contemplate future development programs."

About DakoCytomation

DakoCytomation A/S is one of the world's leading providers of system solutions for cancer diagnostics and cell analysis. Hospital and research laboratories worldwide use DakoCytomation products to make precise diagnoses and determine the most effective treatment of patients suffering from cancer and other serious diseases. DakoCytomation is privately owned and headquartered in Denmark. With more than 1300 employees and a presence in more than 20 countries, DakoCytomation covers most of the global market. Remaining markets are covered by distributors in 50 countries. For more information, visit http://www.dakocytomation.com.

About Clarient, Inc.

Clarient provides market leading technologies, services and expert support for the characterization, assessment and treatment of cancer, leading to more accurate diagnoses by pathologists, more confident treatment decisions by oncologists, a more efficient way to identify and develop pharmaceuticals and, ultimately, better outcomes for patients. A majority-owned subsidiary of Safeguard Scientifics, Inc., Clarient was formed in 1996 to develop and market the Automated Cellular Imaging System (ACIS). This digital imaging and assessment system allowed pathologists, for the first time, to obtain potentially more reliable, reproducible quantitative results for a broad range of slide-based diagnostic tests. In 2005, the ACIS and other leading diagnostic technologies such as flow cytometry and genetic testing were brought in-house to a state-of-the-art diagnostic laboratory and surrounded by a team of premiere cancer specialists, forming the Clarient Diagnostic Services business. This facility and the Clarient team support the efforts of pathologists and the biopharmaceutical industry as a central resource for cancer diagnostics, disease interpretation, remote pathology, and contract research operations.

Clarient's mission is to provide critical information to clinicians that will improve the quality and reduce the cost of patient care, and speed drug discovery. Many of the top clinical laboratories, hospitals, university medical centers and biopharmaceutical companies in the United States and Europe are currently using Clarient technology and services. Clarient and ACIS are registered trademarks of Clarient. For more information, visit http://www.clarientinc.com.

About Safeguard Scientifics, Inc

Safeguard Scientifics, Inc. (NYSE: SFE) is a strategic growth partner for companies in the Time-to-Volume stage of development. Time-to-Volume companies are those that are generating revenues from a commercially viable product or service, and are facing new challenges as they scale their businesses to meet market opportunities. Focused primarily on the information technology and life sciences sectors, Safeguard generally acquires majority ownership interests in companies at this stage of growth. In addition to expansion capital, Safeguard provides its companies a wide range of operating and managerial expertise to drive their successful growth to become market leaders. For more information about Safeguard and its strategy, visit http://www.safeguard.com.

The statements herein regarding Clarient, Inc. contain forward-looking statements that involve risks and uncertainty. Future events and the Company's actual results could differ materially from the results reflected in these forward-looking statements. Factors that might cause such a difference include, but are not limited to, the Company's ability to successfully implement its plans to change its name, to reorganize itself into separate business units and to continue to expand its offerings of cancer diagnostic laboratory services, biopharma services and in-sourcing of the Company's Access remote pathology program, the performance and acceptance of the Company's system in the market place, the Company's ability to expand and maintain a successful sales and marketing organization, continuation of favorable third party payer reimbursement for tests performed using the Company's system, the ability to obtain additional financing for its business on favorable terms or at all, unanticipated expenses or liabilities or other adverse events affecting cash flow, uncertainty of success in developing any new software applications, failure to obtain FDA clearance or approval for particular applications, the Company's ability to compete with other technologies and with emerging competitors in cell imaging and dependence on third parties for collaboration in developing new tests and in distributing the Company's systems and tests performed on the system, and risks detailed from time to time in the Company's SEC reports, including quarterly reports on Form 10-Q, reports on Form 8-K and annual reports on Form 10-K. Recent experience with respect to ACIS placements, new contracts for placements, revenues and results of operations may not be indicative of future results for the reasons set forth above.

The company does not assume any obligation to update any forward-looking statements or other information contained in this document.

For Clarient, Inc. Contact:
Stephen T. D. Dixon
Executive Vice President & CFO
(949) 443-3355

For DakoCytomation Contact:
Peter Hogsted
Investor Relations Director
(45) 22 78 35 00

Investors: Matt Clawson
Media: Len Hall
Allen & Caron, Inc.
(949) 474-4300

Last Updated ( Jul 19, 2005 at 12:18 PM )
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