PHILADELPHIA, Oct. 16, 2012 /PRNewswire/ -- George Bessenyei, Gregory V. Novak and Robert S. Goggin (the "Concerned Vermillion Stockholders" or "Group") commented today on the repayment of $5.9 million of debt by Vermillion, Inc. (the "Company") to Quest Diagnostics, Inc. ("Quest").
George Bessenyei stated, "We believe the fact that Quest has insisted on repayment of their credit line demonstrates a lack of confidence in the Company's leadership. The news is especially disappointing given that recently, Gail S. Page the company's Chief Executive Officer, emphasized to investors at a conference that the loan was 'forgivable'. The fact that Quest, who is also Vermillion's largest stockholder, has chosen to not forgive or extend the loan indicates to us that Quest will no longer risk its capital on the James S. Burns led Board of Directors."
"Quest's financial contributions to Vermillion to date have uniformly been spent in exactly the same fashion as all other shareholders' money: excessive executive compensation and other corporate waste. It's anything but surprising that Quest decided to save some of its investment from the failed leadership of the Company," said Robert S. Goggin.
The Concerned Vermillion Stockholders' nominees, when elected, will work constructively to restore the confidence of Quest and all investors.Bessenyei concluded, "We remain excited by the potential of Vermillion and believe it has incredibly valuable assets. As a recent large sample study demonstrated, OVA1 (the company's FDA approved diagnostic test) has no peer when it comes to sensitivity in detecting ovarian cancer. With the right people on the Board, we believe that the company has tremendous upside." Stockholders please contact Okapi Partners LLC Patrick McHugh / Geoff Sorbello (212) 297-0720