IDEXX to close Russian subsidiary as Ukraine war drags on

File photo IDEXX Laboratories Inc., whose Westbrook headquarters building is shown here, is permanently shuttering a business unit in Russia.

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By Renee Cordes

As Russia's war against Ukraine drags on, IDEXX Laboratories Inc. (Nasdaq: IDXX) has decided to immediately wind down and liquidate its sole Russian subsidiary along the company's direct operations in Russia.

The Westbrook-based provider of veterinary diagnostics, veterinary practice software and water testing disclosed the decision in a June 14 filing with the Securities and Exchange Commission that was first reported on by the Portland Press Herald.

In early April, IDEXX announced that it had significantly scaled back operations in Russia and halted shipments and sales of veterinary equipment in that country.

The company elaborated on those moves in its regulatory filing, which mentioned the suspension since March of veterinary equipment sales, marketing, hiring, new business development and related investments.

However, IDEXX also underscored that its revenue in Russia last year accounted for less than 1% of the total and that the company has no manufacturing or significant supply arrangements in Russia.

"After careful consideration," the filing read, "IDEXX has decided to wind down and liquidate our sole Russian subsidiary, as well as its direct Russian operations, starting immediately. These discontinued operations consist of marketing and selling diagnostics products for veterinary clinics in Russia.

"As IDEXX works to wind down its Russian operations, the company is focused on providing transition support to its impacted Russian employees."

A company spokesperson was not immediately available to provide details on how many IDEXX employees are in Russia, where some of its products will continue to be sold.

"After we continue the wind-down of our direct Russian operations, only a limited number of our products, which are important for human or animal health care, we will continue to be sold in Russia pursuant to ongoing third-party distribution agreements," the company said in its SEC filing.

The move comes amid a warning from NATO Secretary General Jens Stoltenberg that Russia's war in Ukraine could take years, "even if the costs are high, not only for military support, but also because of rising energy and food prices." Stoltenberg's remarks come from an interview published over the weekend in Germany's Bild am Sonntag newspaper.

IDEXX shares have a market value of around $27.86 billion as of late Tuesday morning, when shares were trading at $331.62, up 1.09% over Monday's closing price. The stock has lost 45.3% of its value over the past year.