A Diagnostics & Imaging Week
Inverness Medical Innovations (IMI; Waltham, Massachusetts), a provider of rapid diagnostic products and health management services, said it has received a decision from an arbitration tribunal regarding the company's Binax (Scarborough, Maine) subsidiary.
The panel's decision awards Binax's distributor in Spain and Portugal roughly $13.8 million, including interest and arbitration-related expenses.
While IMI said it is evaluating its next steps, it noted that the terms of the distribution agreement in question provide "limited remedies" to the company.
Inverness said it will record an after-tax charge of about $8.6 million or 10 cents a diluted share for 2Q08.
IMI acquired Binax, a developer of rapid diagnostic products, primarily related to the respiratory system back in 2005 in exchange for 1,433,333 shares of its common stock and additional consideration of $8.6 million in cash at closing.