This article was originally published in The Gray Sheet
Executive SummaryDrugs-of-abuse testing firm's proposed initial public offering of 2.5 mil. shares at $10-12 each is outlined in a prospectus filed with the Securities and Exchange Commission. A portion of the approximately $25 mil. in anticipated net proceeds will be used for repayment of bank debt, manufacturing improvements, increased R&D expenditures, acquisitions and general corporate purposes. For the on-site drug testing market, Lake Forest, California-based Ansys produces for Roche Diagnostic Systems the TesTcup and TesTstik urine-based testing devices for detection of drugs-of-abuse. The company also makes the On-Site Alcohol pocket-sized test for detection of ethanol in urine or saliva. For the laboratory market, the firm offers the Toxi-Lab drug screening system, specialty laboratory and research products. The drugs-of-abuse testing segment of the U.S. in vitro diagnostic testing market was about $628 mil. in 1996 and is estimated to grow to about $900 mil. by 2002. In 1998, the company generated net income of $2.7 mil. (up 123%) on revenues of $19 mil. (up 77.3%). Underwriters Vector Securities International and Sutro & Co. hold an overallotment option for 375,000 additional shares
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