ATS launches new automated inspection technology for
pharmaceuticals, secures first orders
TSX: ATA
CAMBRIDGE, ON, Feb. 16 /CNW/ - ATS Automation Tooling Systems Inc. today
announced that a major pharmaceutical company has placed a U.S. $2.2 million
(CDN $2.9 million) order for two high-speed, fully automatic ATS machine
vision inspection systems.
This is the first of a number of standard-technology based automation
systems ATS is currently developing specifically for the pharmaceutical
industry and the order represents a breakthrough for ATS in pharmaceuticals.
"ATS has made major headway in the healthcare industry over the past four
years by applying its knowledge to solve customer challenges," said Klaus
Woerner, ATS President and Chief Executive Officer, "but now, we've gone a
step beyond by developing proprietary standard technology platforms that
specifically address the pharmaceutical sector. This order demonstrates that
we have the solutions that pharma is looking for, and most important, that we
can give this particular customer a platform that significantly outperforms
existing inspection technologies.
"This extension of ATS's existing technology base has been extensively
prototyped over the last nine months. As such, we know it achieves yields for
major faults and false reject rates that are far superior to anything on the
market today."
These ATS machine vision systems will inspect prescription pharmaceutical
products in one particular product format. However, they have been designed as
a standard platform, capable, with minor modification, of inspecting product
over a range of common formats including vial, plastic ampoule or pre-filled
syringe packages.
"By making standard, configurable platforms available, and supporting
these systems with other forms of custom automation technology and our line
integration capabilities, ATS provides a total solution for pharmaceutical
customers," said Mr. Woerner. "Our solution improves productivity, product
quality and offers a very rapid return on investment."
It is anticipated that these first orders will be the foundation for a
long term supply relationship with this client. The customer has indicated
that it intends to tender for additional machine vision systems over the next
few months, with the potential for even more units in future.
This order is in addition to the $54 million in new order bookings
obtained during the first five weeks of the Company's fourth quarter as
announced on February 5, 2004.
ATS In Healthcare
ATS targeted healthcare as a new market five years ago and since then has
generated more than $285 million in revenue in the sector from the world's
leading healthcare, medical device and pharmaceutical companies. These
assignments have included the Company's machine vision capabilities for
package integrity inspection, labeling, lot number and expiry date code
inspection and other important applications.
The Company's decision this fiscal year to develop proprietary high-
speed, fully automated vision inspection systems was based on an intimate
understanding of customer requirements and, said Mr. Woerner, "our belief that
there is a substantial market for next-generation automated inspection
technology in pharmaceuticals.
"Because regulatory authorities require all regulated drug products to be
thoroughly inspected, and in many cases this is still done manually or semi-
automatically, pharma is a new, high growth industry for us. ATS's ability to
supply a next generation fully automated solution which substantially improves
throughput and ensures the utmost precision, is expected to drive demand over
a range of applications for our newest standard platform. In fact, we are
already in discussions with several other pharma companies who are keenly
interested in our new vision inspection system and we are confident that
additional orders will be placed over the next few months."
Improved manufacturing technology and yields are a major preoccupation in
the drug industry today. Both branded drug companies and the U.S. Food and
Drug Administration regard manufacturing productivity improvement as the next
opportunity to lower costs and maintain margins in the face of increasing
competition and government cost containment initiatives. The pharmaceuticals
industry represents about two thirds of the estimated $550 billion global
healthcare product market, and is forecast to grow 12% annually over the next
5 years.
ATS has over two decades of experience in developing and applying machine
vision to many other industry sectors where it is considered the market
leader. The name of ATS' client and contract details for the new standard
platform cannot be disclosed due to confidentiality requirements.
About ATS
ATS Automation Tooling Systems Inc. (www.atsautomation.com) is the
industry's leading designer and producer of turn-key automated manufacturing
and test systems, which are used primarily by multinational corporations
operating in a variety of industries including: automotive, electronics,
healthcare, and consumer products. The Company also makes precision components
and sub-assemblies using its own custom-built manufacturing systems, process
knowledge and automation technology. Through Photowatt International S.A., and
Spheral Solar Power Inc., ATS is an emerging leader in the rapidly growing
market for solar energy cells and modules. ATS employs approximately 3,800
people at 26 facilities in Canada, the United States, Europe and Asia-Pacific.
The Company's shares are traded on The Toronto Stock Exchange under the symbol
ATA.
Certain forward looking statements are made in this news release,
including statements regarding possible future business. Investors are
cautioned that such forward-looking statements involve risks and
uncertainties, including, without limitation, continued acceptance of ATS'
products, technologies, customer requirements and other risks detailed from
time to time in ATS' periodic reports filed with Canadian regulatory
authorities.
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For further information: Ron Jutras, Executive Vice President and Chief Financial Officer, (519) 653 6500