Cholestech Corporation Announces New Corporate Strategy, Moves Closer to the Consumer Through Personal Health Management.HAYWARD Hayward, city (1990 pop. 111,498), Alameda co., W Calif.; settled 1851, inc. 1876. It is an important commercial and distribution center for farm products. Manufactures include wire, plastics, metal and paper products, textiles, machinery, and motor vehicles. , Calif.--(BW HealthWire)--Nov. 30, 1999-- Cholestech Corporation (Nasdaq:CTEC CTEC Course and Teacher Evaluation Council (Northwestern University, Office of the Register) CTEC Certified Technical Education Center CTEC Certified Technical Education Center (Microsoft) ) today announced the strategic expansion of the Company to create three focused business units designed to bring Cholestech closer to the consumer. Beginning immediately, Cholestech will be expanding its product offering to include consumer testing services and consumer-based eBusiness. With the addition of its two new business units: WellCheck(TM), WellCheck.com(TM), along with its existing core business of Diagnostic Products, Cholestech is committed to enabling consumers to become better informed regarding their personal health and become more active regarding their cholesterol levels. "We feel strongly that the healthcare market is becoming more and more responsive to the needs of consumers," said Warren E. Pinckert II, President and Chief Executive Officer. "The Baby Boomers See generation X. are focused on staying younger, and healthier, longer. Managed care is a growing force whose focus is on driving healthcare costs out of the system. Consumer product companies are increasingly marketing 'heart-healthy' products to meet growing demand. Patients, Physicians, Pharmaceutical and Consumer Food Companies are all playing a role." "These trends in the healthcare market are being accelerated by the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the ," continued Pinckert. "Americans treat themselves four times more often than they visit a physician. Researchers estimate that fifty-five percent of Internet searches are to seek information that is healthcare related. "We believe Cholestech can play a key role in facilitating personal health information in the areas of cholesterol management as part of a full lipid profile lipid profile, n a series of tests used to gauge a person's risk for coro-nary heart conditions. Blood levels examined in a lipid profile include those for total cholesterol, LDL- and HDL-cholesterol, and triglycerides. , fasting blood glucose blood glucose Diabetology The principal sugar produced by the body from food–especially carbohydrates, but also from proteins and fats; glucose is the body's major source of energy, is transported to cells via the circulation and used by cells in the presence , and liver function testing to help ascertain and communicate the individual's risk of coronary heart disease coronary heart disease: see coronary artery disease. coronary heart disease or ischemic heart disease Progressive reduction of blood supply to the heart muscle due to narrowing or blocking of a coronary artery (see atherosclerosis). , diabetes, and other chronic diseases. "Working together, WellCheck, WellCheck.com, and Diagnostic Products can provide convenient, affordable, and reliable personal health information tools directly to the consumer as well as to healthcare practitioners and providers." About WellCheck One of Cholestech's three new business units, WellCheck will provide key face-to-face interaction with the consumer by bringing cholesterol testing Cholesterol Test Definition The cholesterol test is a quantitative analysis of the cholesterol levels in a sample of the patient's blood. Total serum cholesterol (TC) is the measurement routinely taken. to venues which are convenient to the general public. Earlier this year, Cholestech conducted a series of market pilot programs to explore the consumer's experience with the Cholestech L.D.X(R) System in the field. During the pilot, 7,500 people were tested at mass merchandising merchandising Element of marketing concerned especially with the sale of goods and services to customers. One aspect of merchandising is advertising, which aims to capture the interest of the segment of the population most likely to buy the product. giant Wal-Mart, Walgreens pharmacies This article is a list of major pharmacies (also known as chemists and drugstores) by country. Australia Pharmacies in Australia are mostly independently-owned by pharmacists, often operated as franchises of retail brands offered by the three major , and Dominics grocery stores. WellCheck was formed as the culmination of that research pilot. Starting in selected regions, and broadening its coverage through a combination of acquisition and internal growth, Cholestech plans to develop the first truly nationwide consumer testing service, bringing physicians, healthcare providers, and consumers together with the information they need to improve cardiovascular cardiovascular /car·dio·vas·cu·lar/ (-vas´ku-ler) pertaining to the heart and blood vessels. car·di·o·vas·cu·lar adj. Abbr. health, and other potentially life-threatening chronic conditions. About WellCheck.com As Cholestech developed its new strategy, it was immediately apparent how important the role of providing information to the consumer would be. During the eight years of Cholestech operations, the Company has shipped sufficient single-use, disposable disposable Nursing adjective Referring to that which is discarded or disposed of noun An item used in health care-related Pt contact which is discarded after use–eg masks, gloves, gowns, needles, paper products, syringes, wipes. See Biohazardous waste. cassettes to test nine and a half million people -- one of the broadest means of testing outside of the clinical laboratory. Cholestech estimates that close to three and a half million people may have been tested using the Cholestech L.D.X(R) System in the last 12 months alone. Managing this information on cardiovascular health, helping individuals identify and measure their risk of cardiovascular disease Cardiovascular disease Disease that affects the heart and blood vessels. Mentioned in: Lipoproteins Test cardiovascular disease utilizing the data from the long established Framingham Study, and facilitating the flow of this information through the broad channel of the Internet is the goal of the new WellCheck.com business. Together with Diagnostic Products and WellCheck, WellCheck.com will provide personal health information directly to consumers via the Internet. About Diagnostic Products The new Diagnostic Products business unit, Cholestech's traditional business, remains the core of Cholestech's new strategy. Beginning with the Cholestech L.D.X(R) System, Diagnostic Products will be even more focused on developing, manufacturing, and marketing products which support consumers' personal health goals. From the launch of the new liver function test on the Cholestech L.D.X(R) System planned for later this year, to improvements in the quality and efficiency of the current products Cholestech manufactures, Diagnostic Products is focused on better testing technology. Diagnostic Products will help consumers to "know their numbers" with the same performance characteristics, including: precision, linearity, method comparison, and interfering substances compared with a predicate In programming, a statement that evaluates an expression and provides a true or false answer based on the condition of the data. device. About Cholestech Cholestech is committed to helping people successfully improve their health. Working together, the Cholestech business units of WellCheck, WellCheck.com, and Diagnostic Products can provide simple, accessible, and reliable personal health information to health care practitioners and directly to consumers in over 35 countries around the world. By offering efficient and economic diagnostic screening for cholesterol, blood sugar, and liver function, Cholestech hopes to help more people understand whether or not they face potentially serious health risks. Therapeutic monitoring options using the Cholestech L.D.X(R) System can help patients monitor their progress as they work with their health care provider to reduce their risk of cardiovascular and other diseases. Working together with health care providers, Cholestech's goal is to ultimately enable people to lead longer, healthier, and more active lives. Investor Call Cholestech will be holding an open conference call for investors to discuss the Company's new strategy. The call will be held Wednesday, December 1 at 2 p.m. Pacific Time. To participate please call 800/850-9878 at least five minutes before the scheduled start time and enter reservation number 13656300 when requested. A playback Playback could mean:
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 of Cholestech Corporation 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: This release may contain 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. based on Cholestech's current expectations, estimates, and projections about Cholestech's industry, management's beliefs, and certain assumptions made by Cholestech. Words such as "anticipates", "expects", "intends", "plans", "believes", "may", "will", and similar expressions are intended to identify forward-looking statements. Forward-looking statements in this release include statements regarding Cholestech's future key role in facilitating personal health management; Cholestech's development of the first nationwide consumer testing service; Cholestech's ability to manage cholesterol and other cardiovascular health information over the Internet; and Cholestech's launch later this year of its new liver function test. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Therefore Cholestech's actual results could differ materially and adversely from those expressed in any forward-looking statements as a result of various factors. Important factors that may cause Cholestech's results to differ materially from those expressed in forward-looking statements include, but are not limited to, the risks inherent in acquisitions of technologies and businesses; integration issues; unanticipated expenditures; changing relationships with customers, suppliers, and strategic partners; potential contractual, intellectual property, or employment issues; and the risk that the acquisition can not be completed successfully or that anticipated benefits are not realized; delays; the loss of a significant customer; the availability and pricing of competing products and services and the resulting effects on sales and pricing of Cholestech's products and services; Cholestech's ability to hire and retain key executives, technical personnel, and other employees in the numbers, with the capabilities, and at the compensation levels needed to implement Cholestech's business and product plans; the quality of Cholestech's products; business disruptions, claims, expenses, and other difficulties resulting from "Year 2000" problems in computer-based systems Computer-based systems Complex systems in which computers play a major role. While complex physical systems and sophisticated software systems can help people to lead healthier and more enjoyable lives, reliance on these systems can also result in loss of used by us, Cholestech's suppliers or Cholestech's customers; general economic conditions and specific conditions in the markets Cholestech addresses; and other factors. There are several major risks created by Cholestech's pursuit of Cholestech's new strategy. These risks include the following: Cholestech has no experience in the Testing Services or Internet Businesses. The testing services business and the Internet business to be pursued through Cholestech's newly created WellCheck and WellCheck.com businesses are completely new to Cholestech and Cholestech's management team. To date Cholestech's business has been exclusively in the area of manufacturing and marketing the Cholestech L.D.X(R) System. Cholestech may not be able to successfully develop these new businesses. The demands of attempting to grow these new businesses may prevent Cholestech from devoting significant time and attention to Cholestech's traditional business, and that traditional business may decline. Internet Health Management is a new and unproven unproven Dubious, nonscientific, not proven, quack, questionable, unscientific adjective Relating to that which has not been validated by reproducible experiments or other scientific methods for determining effect or efficacy Business. The Internet-based health information management business is a very new and as yet unproven market. Whether Cholestech succeeds in this business will depend upon individual acceptance of Internet-based management of personal health information. People may not feel comfortable having their health-related information available over the Internet despite the privacy and security measures Noun 1. security measures - measures taken as a precaution against theft or espionage or sabotage etc.; "military security has been stepped up since the recent uprising" security Cholestech plans to take. Cholestech has minimal experience in managing geographically diverse operations. Cholestech's traditional business has been managed and operated almost exclusively from Cholestech's Hayward, Calif., headquarters. The new WellCheck business Cholestech is adopting will require Cholestech to operate in multiple geographic locations. This will require Cholestech to manage multiple, geographically dispersed dis·perse v. dis·persed, dis·pers·ing, dis·pers·es v.tr. 1. a. To drive off or scatter in different directions: The police dispersed the crowd. b. businesses and adapt Cholestech's management and financial systems and controls to this new geographically dispersed business. Cholestech may not be able to manage these changes rapidly, successfully, or at all. Significant Startup Expenses. The development of the two new business units, and the WellCheck.com Internet business in particular, will require significant start-up Start-up The earliest stage of a new business venture. expenditures. These expenditures are likely to materially affect the operating results of Cholestech as a whole. The Company may need to seek additional capital to help fund these start-up expenses. The required additional capital may not be available to Cholestech on favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. or acceptable terms when required, or at all. If Cholestech cannot obtain required additional capital, Cholestech may have to change Cholestech's business strategy, which would be disruptive disruptive /dis·rup·tive/ (-tiv) 1. bursting apart; rending. 2. causing confusion or disorder. to Cholestech's business. If Cholestech raises additional capital through borrowings, the terms of such borrowings may impose limitations on how Cholestech's management may operate the business in the future. If Cholestech raises additional capital by issuing equity, this may result in a dilution Dilution A reduction in earnings per share of common stock that occurs through the issuance of additional shares or the conversion of convertible securities. Notes: Adding to the number of shares outstanding reduces the value of holdings of existing shareholders. of existing shareholders' interests in Cholestech. Also, equity issued by Cholestech may have rights, preferences, or privileges senior to those of Cholestech's existing shareholders. Acquisition Related Risks. The WellCheck business will be developed in significant part by Cholestech's acquiring existing testing service businesses. Cholestech may acquire services and/or technology to assist in developing Cholestech's WellCheck.com business as well. Any such acquisition could result in significant amounts of cash, potentially dilutive issuances of equity securities, and/or the incurring in·cur tr.v. in·curred, in·cur·ring, in·curs 1. To acquire or come into (something usually undesirable); sustain: incurred substantial losses during the stock market crash. 2. of debt or amortization expenses related to goodwill and other intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. , any of which could materially harm Cholestech's operating results and business. Additional risks from the acquisition(s) Cholestech's plan may include: -0-
-- Difficulties in assimilating the operations, technologies,
products, services, and personnel of the acquired company or
business -- especially assimilating multiple small businesses
that Cholestech may acquire.
-- The diversion of Cholestech's management's attention from other
business concerns; and
-- The potential loss of key employees of the acquired company or
business.
-0- Internet Business Risks. Cholestech's planned WellCheck.com business will involve the provision and management of individual health-related information over the Internet. Despite security measures Cholestech plans to take, such information may be accessed or manipulated by third parties without Cholestech's, or the individual's consent. Any such security breach could greatly erode Erode (ĕrōd`), city (1991 urban agglomeration pop. 361,755), Tamil Nadu state, S India, on the Kaveri River. The city is located in a cotton-growing region, and its industries include cotton ginning and the manufacture of transport equipment. consumer confidence in Cholestech's WellCheck.com business and could severely harm that business and its prospects. Additionally, if an individual's health information is corrupted cor·rupt adj. 1. Marked by immorality and perversion; depraved. 2. Venal; dishonest: a corrupt mayor. 3. by software or technical problems, consumer confidence in the WellCheck.com business could be severely damaged. If consumer information is altered by third parties or by technical problems, the affected individual may bring litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. against Cholestech and/or the Company's web site hosting partners. Any such litigation could result in significant expense, including any damage awards. Even if ultimately decided in Cholestech's favor, such litigation could result in significant expense and distraction Distraction Divination (See OMEN.) Porlock a “person from Porlock” interrupted Coleridge while he was recollecting the dream on which he based “Kubla Khan”. [Br. Lit.: Poems of Coleridge in Magill IV, 756] of Cholestech's management. Cholestech's recent Annual Report of Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and Quarterly Report on Form 10-Q Form 10-Q See 10-Q. and other Securities and Exchange Commission filings discuss some of the important risk factors that may affect Cholestech's business, results of operations, and financial condition. Cholestech undertakes no obligation to revise or update publicly any forward-looking statements for any reason. All such forward-looking statements are current only as of the date on which such statements were made. Note to Editors: Cholestech L.D.X(R), WellCheck, and WellCheck.com are registered trademarks of Cholestech Corporation. All other trademarks mentioned in this document are the property of their respective owners. For more information about Cholestech and its products visit Cholestech on the web at www.cholestech.com. |
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