Bostwick Labs Goes Public

| March 10, 2008
NEW YORK (AP) – Bostwick Laboratories Inc., which focuses on cancer diagnostics, plans an initial public offering of common stock, according to a Securities and Exchange Commission filing Friday.

The Glen Allen, Va.-based company did not disclose the expected size or price range of the IPO, but indicated the offering price may total up to $100 million. Bostwick noted that the total offering price was estimated solely to calculate its registration fee and may change.

Bostwick focuses on the urologic pathology market segment, including prostate cancer biopsies, and the gynecologic pathology segment, including cervical cancer screenings.

In its prospectus, Bostwick said its business model was developed by founder and Chief Executive David Bostwick, a former professor of pathology and urology at the Mayo Clinic. The CEO will continue to be the company’s controlling shareholder after the IPO.

Bostwick, which was founded in 1999, has five laboratories in Virginia, Arizona, New York, Florida, and London. The company has more than 750 employees.

In 2007, Bostwick analyzed about 291,000 cases, compared with about 159,000 in 2006, an increase of 83 percent.

In 2007, Bostwick’s earnings fell to $2.3 million from $7.1 million. At the same time, the company’s revenue jumped 76 percent to $102.8 million from $58.4 million. Bostwick said about 87 percent of its 2007 revenues came from its urology business.

Bostwick plans to use the net proceeds of the IPO to repay debt, expand and establish laboratories, and add information technology infrastructure and personnel. The company plans to use the remaining proceeds for general corporate purposes, including potential acquisitions.

Banc of America Securities and Wachovia Capital Markets are serving as the IPO’s lead underwriters. William Blair & Co. and Cowen and Co. are also underwriting the offering.

Bostwick expects to list its shares on the Nasdaq Global Market under the symbol "BOST."


Category: Business

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