West Pharmaceutical Services Sells GFI Clinical Services Unit

25-Aug-2005

West Pharmaceutical Services, Inc. announced the sale of the assets of the Company's GFI Clinical Services, an 80-bed Phase I clinical trial facility in Evansville, IN, to Covance, Inc.. The sale completes the divestiture of the businesses that comprised the Company's former drug delivery division. West received $5.7 million for the assets, subject to a closing-date working capital adjustment, and will recognize an after-tax gain from the sale of discontinued operations of approximately $0.5 million, or $0.02 per share, in the third quarter of 2005. Pursuant to the agreement between West and Covance, substantially all of the approximately 100 employees at the Evansville facility will continue to be employed at the facility.

Donald E. Morel, Jr., Ph.D., West's Chairman and Chief Executive Officer said, "With the sale of West's Drug Delivery unit in January 2005, GFI no longer fits into West's manufacturing and products-focused strategy. We are delighted that the sale will preserve the GFI operation and employment, and believe that, under the Covance umbrella, GFI will continue to provide outstanding service to our mutual pharmaceutical customers."

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