NEWS BULLETIN | HEMAGEN(R)DIAGNOSTICS, INC.
9033 Red Branch Road, Columbia, MD 21045 |
AT THE COMPANY:
William P. Hales
President and Chief Operating Officer
Tel. (443) 367-5500
Fax (443) 367-5527
FOR IMMEDIATE RELEASE
March 1, 2002 | NASDAQ: HMGN
HMGNW |
HEMAGEN DIAGNOSTICS, INC. ANNOUNCES THE SUCCESSFUL TRANSFER OF OPERATIONS
OF ITS NEW VETERINARY PRODUCT LINE THAT IT ACQUIRED IN DECEMBER
COLUMBIA, MD -- Hemagen Diagnostics, Inc. (NASDAQ: HMGN, HMGNW) a biotechnology company that develops, manufactures, and markets proprietary medical diagnostic test kits for both the human and veterinary market, today announced that it has completed the transfer of the manufacturing operations of the veterinary product line that it acquired in December. The product line was acquired for under $100,000 through a Voluntary Repossession and Collateral Disposition Agreement with the secured party lender to Kalisto Biologicals, Inc. The acquisition included substantially all of the assets that Kalisto had developed, manufactured and marketed including a clinical chemistry analyzer and various other tests and panels targeted for use in the veterinary market.
The assets purchased by Hemagen included approximately 200 new veterinary customers with total annual revenues of approximately $400,000. Through the first two full months of ownership revenues were approximately $50,000 per month. During the first two months the business has demonstrated that it is on track to meet or exceed that revenue expectation. Hemagen also purchased certain manufacturing equipment in this transaction that will be useful in other areas of its operations.
William P. Hales, President and Chief Operating Officer, commented, “We believe that this transaction was a good first step in achieving our strategy of consolidating a fragmented industry and expect that this transaction will be the first of many similar transactions. Additionally this transaction served as a good training tool for our “team” in executing acquisitions and integrating businesses. We are confident that this business will generate a significant return on investment and we will continue to seek out these types of opportunities. In December we announced that within the next three months we would meld this product line into our Maryland operations and expect it to produce good cash flow. We congratulate our team of professionals who were able to complete this activity within the budgeted time frame. The acquisition of this product line furthers the Company’s stated goal of building shareholder value by focusing on increasing sales of our current products, developing new products, and making strategic acquisitions.”
Hemagen Diagnostics, Inc., is a biotechnology company that develops, manufactures and, markets more than 150 FDA-cleared proprietary medical diagnostic test kits used to aid in the diagnosis of certain autoimmune and infectious diseases. In the United States, the Company sells its products directly to physicians, veterinarians, clinical laboratories and blood banks and on a private-label basis through multinational distributors of medical supplies. Internationally, the Company sells its products primarily through distributors. Hemagen also manufactures and sells the Analyst® an FDA-cleared Clinical Chemistry Analyzer used to measure important constituents in human and animal blood. The Company sells the Analyst both directly and through distributors servicing both physicians’ office laboratories and veterinarians’ offices.
Except for any historical information contained herein, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties, including those described in the Company’s Securities and Exchange Commission Reports and Filings.
Certain Statements contained in this News Bulletin that are not historical facts constitute forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, and are intended to be covered by the safe harbors created by that Act. Reliance should not be placed on forward looking statements because they involve unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to differ materially from those expressed or implied. Any forward-looking statement speaks only as of the date made. The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which they are made.
Statements concerning the establishments of reserves and adjustments for dated and obsolete products, write-offs of goodwill, relocation expenses, expected financial performance, on-going business strategies and possible future action, which Hemagen intends to pursue to achieve strategic objectives, constitute forward-looking information. The sufficiency of such charges, implementation of strategies and the achievement of financial performance are each subject to numerous conditions, uncertainties and risk factors. Factors which could cause actual performance to differ materially from these forward looking statements, include without limitation, management’s analysis of Hemagen’s assets, liabilities and operations, the failure to sell date sensitive inventory prior to its expiration, the inability of particular products to support goodwill allocated to them, competition, new product development by competitors which could render particular products obsolete, the inability to develop or acquire and successfully introduce new products or improvements of existing product costs, difficulties in complying with laws and regulations administered by the U. S. Food and Drug Administration and the ability to assimilate product acquisitions successfully.
