Aug. 9, 2012
/PRNewswire/ -- IDEXX Laboratories, Inc. (NASDAQ: IDXX), announced today it has agreed with MWI Veterinary Supply, Inc. (MWI) on the terms of a revised distribution relationship under which MWI will continue to sell IDEXX products to veterinary customers in the U.S., and in the future also will be able to sell products that compete with IDEXX's products. Under the new arrangement, which is expected to become effective
January 1, 2013
, IDEXX will reduce the discount from list price at which it sells its products to MWI.
"We believe that this new relationship will be positive for our business in several ways," said
, Chairman and Chief Executive Officer. "Importantly, we believe that upon execution of a new agreement with MWI we will have achieved a result that will lead to the satisfactory conclusion of the multi-year investigation by the U.S. Federal Trade Commission (FTC) staff. In addition, while we understand that MWI will also be carrying competitive products, we will continue to maintain the strong relationship we have had with MWI for over a decade. This will benefit both of our companies and our mutual veterinary customers."
"We also are delighted to reaffirm our multi-decade relationships with Butler Schein Animal Health, Webster Veterinary, Midwest Veterinary Supply, and Victor Medical Company, which we will maintain on terms consistent with our historical practices. With each of these companies we have built a successful partnership based on a shared vision of providing strong service and adding value to the practices of our veterinary customers. We look forward to continuing to bring new innovations to the veterinary market with the support of our entire network of U.S. distribution partners."
IDEXX announced its intention to move one of its three largest U.S. distributors of companion animal diagnostic products to non-exclusive status, which IDEXX believed would address concerns expressed to IDEXX by the FTC staff regarding IDEXX's relationships with these three distributors.
IDEXX and MWI will negotiate a definitive agreement reflecting the new terms of the relationship. IDEXX intends to seek review of the agreement by the FTC staff to ensure that the agreement satisfactorily addresses the staff's concerns. If the agreement is satisfactory to the FTC staff, IDEXX anticipates negotiating a consent agreement with the staff, which must then be approved by the Commission. Completion of the entire FTC consent agreement process would take several months.