Eurofins Provides Update to Key Stakeholders on Current and Upcoming Actions Following Communications Published by Muddy Waters Since 24 June 2024

Luxembourg-(Business): Regulatory News:

Eurofins (Paris:ERF):

As in previous press releases published by Eurofins on 25 June 2024, 03 July 2024 and 05 July 2024 in response to the unsubstantiated reports by Muddy Waters (NYSE:), LLC (MW), Eurofins would like to provide clear and direct communication on matters of utmost importance to key stakeholders, including shareholders, bondholders, employees and customers, regarding MW’s previous reports and MW’s recent letter to Eurofins’ CEO, Dr. Giles Martin. This approach is fully consistent with the Company’s communications policies, which adhere to strict rules to ensure that all investors receive, at the same time, reliable and accurately verified information through appropriate and approved channels. This is in contrast to the inaccurate, irrelevant, biased and/or misleading claims made by MW in its reports, which Eurofins has completely refuted in its previous press releases, and possibly also to the many other unfounded claims made by MW and/or its cabal of short sellers through alternative channels.

In relation to transactions with related parties involving Analytical Bioventures SCA (ABSCA), controlled by Dr. Gilles Martin, Eurofins continues to access archives and information relating to the old allegations and facts cited by MW with errors and plans to provide investors, in due course, with further information about its real estate program that provides confirmation of arm’s length terms in transactions involving related parties, and can verify the following points that complement Eurofins’ previous communication:

• As Eurofins has explained in its previous press releases, over the past 10 years, for each ABSCA-financed site expansion on an ABSCA-owned site, the lease terms of these additional properties have been assessed as independent of the counterparty based on valuations of similar properties carried out by independent third-party experts. In fact, valuations to ensure that related party transactions are independent of the counterparty have been standard practice for Eurofins since ABSCA began financing premises to be used by Eurofins companies in 2005 so that Eurofins could use its resources to expand organically and through acquisitions at a time when its access to capital and credit was more limited.
• Contrary to MW’s false claim that Eurofins funded the expansions while Dr Martin increased the rent charged on the larger facilities (page 7 of the MW report published on 25 June 2024), whenever Eurofins funded site improvements on laboratory campuses leased from ABSCA affiliates, there was of course no increase in the rent payments made by Eurofins to ABSCA affiliates in respect of those improvements.

Furthermore, as we have already discussed on the basis of feedback from its investors as part of the ongoing dialogue, it is planned that Eurofins will have the opportunity to acquire sites owned by ABSCA that Eurofins companies wish to use in the long term, subject to a vote by unrelated shareholders (i.e. without the participation of ABSCA and its representative directors). The timetable for this process depends on many conditions, including the significant preparatory work required (i.e. valuations by independent external experts) and Eurofins’ financial development, but Eurofins’ intention is to hold this vote at the earliest appropriate opportunity. In order to proceed expeditiously with this matter, while protecting the sustainability of its balance sheet within the stated leverage targets and with sufficient headroom, Eurofins will give priority, if necessary, to the acquisition of sites owned by ABSCA, if so decided by a majority of its unrelated shareholders, over the acquisition of new sites from third parties.

In relation to MW’s allegations regarding Eurofins’ cash accounting, and as previously announced in its press release of 5 July 2024, Eurofins has engaged Ernst & Young Paris, a leading corporate auditor, to conduct a further independent audit of Eurofins’ cash pooling arrangements and cash position in its consolidated financial statements as at 31 December 2023, and will report on the results when available.

In terms of corporate governance, Eurofins is considering increasing the proportion of independent non-executive directors on its Board of Directors by adding one or more directors with appropriate experience and seniority. Among other factors, Eurofins will consider the qualifications, credit and work experience of potential candidates, with any appointment subject to a shareholder vote at the Annual General Meeting.

In the future, Eurofins will continue to listen to serious requests from legitimate investors and other stakeholders, but does not intend to further divert its resources to respond to irrelevant, biased and/or unfounded allegations or unreasonable requests from MW and similar actors.

Comments from CEO Dr. Jill Martin:

In its most recent letter dated 9 July 2024 and addressed directly to me, MW suggested that transparency is the remedy for gaining investor confidence. As MW should be aware, transparency for a public company like Eurofins requires, among other factors, adherence to clear and strict rules regarding the reliability of published information as well as the manner of publication, to avoid potential risks arising from, among other things, insider trading or market manipulation. Based on what we have seen so far, it seems difficult to conclude that MW adheres to a similarly high level of transparency and accuracy. Rather than continuing to make false or misleading claims against Eurofins or make inappropriate and absurd requests for information, perhaps MW should instead consider whether it is transparent in its own practices and meets its regulatory requirements in all relevant jurisdictions, assuming that its intentions extend beyond simply profiting at the expense of investors, especially passive funds and individual investors who may be less familiar with the practices of short sellers. Since MW never initiated a dialogue with Eurofins to discuss its valuations prior to publishing its communications, which could have prevented the spread of its incorrect and misleading information, we can only assume that MW, and parties that may be working with MW, have no intention other than to serve their own personal financial interests by deceiving investors.

In contrast, Eurofins will continue to deliver on its commitment to providing clear and transparent communications through appropriate channels and formats and after due diligence and careful consideration of the interests and suggestions of its investors and stakeholders. Therefore, going forward, we do not intend to expend further corporate resources responding to MW’s unfounded allegations or arbitrary requests. Instead, our energy and attention are focused not only on our strategic, operational and financial performance, but also on the above-mentioned topics of utmost importance to our key stakeholders. We look forward to discussing these topics with them in future engagements, including when we publish our 2024 half-year results on 24 July 2024.

About Eurofins “The world leader in bioanalysis

Eurofins is a testing company for life. The network of independent companies Eurofins Scientific SE believes it is a world leader in food, environmental, pharmaceutical and cosmetics product testing and in contract research services in discovery pharmacology, forensics, advanced materials science and agricultural sciences. It is also one of the market leaders in testing and laboratory services for genomics, in clinical study support, as well as in the development and contract manufacturing of biopharmaceuticals. It also has a rapidly growing presence in highly specialized molecular clinical diagnostic tests and in vitro diagnostic products.

With approximately 62,000 employees across a decentralized and pioneering network of more than 900 laboratories in over 1,000 companies in 62 countries, Eurofins offers a portfolio of more than 200,000 analytical methods for assessing the safety, identity, composition, authenticity, origin, traceability and purity of a wide range of products, as well as providing innovative clinical diagnostic testing services and in vitro diagnostic products.

The wide range of services offered by Eurofins companies is important for the health and safety of people and our planet. Continuous investment in fully digital transformation and maintaining the best network of modern laboratories and equipment supports our goal of providing our customers with high quality services, innovative solutions and accurate results in the best possible time. Eurofins companies are well positioned to support the increasingly stringent quality and safety standards of customers, the increasing demands of regulatory authorities as well as the evolving requirements of healthcare practitioners around the world.

Eurofins Network has experienced very strong growth since its inception and its strategy is to continue expanding its technology portfolio and geographical reach. Through R&D and acquisitions, its companies leverage the latest developments in biotechnology and analytical chemistry to offer unique analytical solutions to its customers.

Eurofins Scientific SE shares are listed on the Euronext Paris Stock Exchange (ISIN FR0014000MR3, Reuters EUFI.PA, Bloomberg ERF FP).

You can view the original press release on businesswire.com: https://www.businesswire.com/news/home/20240710445296/en/

Notes to editors:
For more information, please visit the website. www.eurofins.com Or contact:
Investor Relations
Eurofins Scientific SE
Phone: +32 2 766 1620
Email: ir@sc.eurofinseu.com

Source: Eurofins