Advanced Neuromodulation Systems to Acquire Its Largest Distributor's Pain Management Business.Business Editors DALLAS--(BUSINESS WIRE)--March 13, 2003 Sun Medical Acquisition Will Expand ANS' Direct Sales Force in Key Southwest and Upper Midwest The Upper Midwest is a region of the United States with no universally agreed-upon boundary, but it almost always lies within the US Census Bureau's definition of the Midwest and includes the states of Minnesota and Wisconsin, as well as at least the Upper Peninsula of Michigan. Territories Advanced Neuromodulation Systems Advanced Neuromodulation System is a subsidiary of St. Jude Medical, Inc based in Plano, Texas. Among the products ANS makes and sells include spinal cord stimulators for intractable pain. , Inc. (ANS (ANS Communications, Inc, Purchase, NY) An ISP, Internet backbone and provider of private data network services, founded in 1990 as Advanced Network & Services, Inc., by IBM, MCI and Merit (consortium of Michigan universities). ) (Nasdaq:ANSI (American National Standards Institute, New York, www.ansi.org) A membership organization founded in 1918 that coordinates the development of U.S. voluntary national standards in both the private and public sectors. It is the U.S. member body to ISO and IEC. ) today announced that it has agreed to acquire the pain management business of its largest distributor, Sun Medical, Inc. Sun Medical is a specialty medical device distributor based in Arlington, Texas Arlington is a city in Tarrant County, Texas (USA) within the Dallas-Fort Worth-Arlington metropolitan area. According to a U.S Census Bureau release, as of July 1, 2006 Arlington has an estimated population of 367,197. . "Sun Medical has earned the distinction of being ANS' largest distributor and customer for many years and has served as a major contributor to our company's growth. As our exclusive distributor in key territories throughout the Southwest and Upper Midwest, Sun has played a key long-term role in expanding the market for spinal cord spinal cord, the part of the nervous system occupying the hollow interior (vertebral canal) of the series of vertebrae that form the spinal column, technically known as the vertebral column. stimulation (SCS). We are excited about transitioning Sun's pain products sales team from their current role as distributor sales representatives to direct ANS sales employees," commented Chris Chavez, ANS' President and Chief Executive Officer. Scott Drees, ANS' Executive Vice President - Sales and Marketing, added: "By acquiring Sun's pain business, ANS will be better able to focus sales priorities on ANS products, expand sales coverage as needed as needed prn. See prn order. and invest more heavily in key customer and market development. In the overall domestic market, ANS will continue to utilize a hybrid and highly entrepreneurial sales force, which includes: specialty pain distributors, independent sales agents, and direct sales people." ANS typically has contracts with its distributors and sales agents that provide for exclusive territories and established sales quotas. In 2002, Sun purchased $6.3 million of ANS products, or approximately 14% of net revenue derived from neuromodulation products. Doug Archer, President of Sun Medical, commented: "We have been very proud to represent ANS' SCS products and contribute to the significant growth of the neuromodulation market. We appreciate the way in which ANS has approached us with this proposal and in how they have ensured a smooth transition that will result in a win-win result for both parties." Mr. Archer said he is confident that most, if not all, of Sun's pain management sales reps and clinical representatives will accept positions with ANS. Mr. Archer will become the Regional Sales Director of ANS' South Central Region upon completion of the transaction. ANS said that the transaction is structured as an asset purchase. The transaction is subject to Sun's shareholders' approval and other customary terms and conditions. Other deal terms were not announced. About Advanced Neuromodulation Systems Advanced Neuromodulation Systems designs, develops, manufactures and markets implantable systems used to manage chronic intractable pain intractable pain Refractory pain Pain medicine Persistent pain which does not respond to at least 3 dosease of parenteral analgesics given over a 12-24 hr period; pain that does not respond to appropriate doses of opioid analgesics. and other disorders of the central nervous system. Forbes magazine recently recognized ANS as one of America's 200 Best Small Companies. ANS recently reported that for the twelve months ended December 31, 2002, revenue increased 51% to $57.4 million from $37.9 million, as neuromodulation sales increased 70% to $46.7 million from $27.5 million for 2001. Net income for 2002 more than quadrupled to $6.7 million, or $0.56 per diluted share, from $1.5 million, or $0.15 per diluted share, for 2001. Additional information about ANS is available at www.ANS-medical.com. "Safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: Statements contained in this press release that are not based on historical facts are "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. ." Terms such as "plan," "should," "would," "anticipate," "believe," "intend," "estimate," "expect," "predict," and similar expressions are intended to identify forward-looking statements. Such statements are by nature subject to uncertainties and risks, including but not limited to: effectively integrating and transitioning Sun's pain management business; minimizing disruption to customer relationships; Sun's sales people accepting offered positions at ANS; receipt of Sun's shareholders' approval; and satisfaction of other closing conditions. Consequently, if such management assumptions prove to be incorrect or such risks or uncertainties materialize, anticipated results could differ materially from those forecast in forward-looking statements. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion