EMPI COMPLETES ACQUISITION OF BIOFEEDBACK COMPANY
ST. PAUL, Minn., Aug. 13 /PRNewswire/ -- Empi, Incorporated, (NASDAQ-NMS: EMPI) a medical device manufacturer, today announced that it has acquired a privately held biofeedback products company, Physical Health Devices, Inc. (PHD) of Fort Lauderdale, Fla. Under terms of the agreement, Empi will transfer 105,820 shares of Empi stock to acquire substantially all of the assets of PHD, which had revenues of approximately $1.5 million in its fiscal year ended March 31, 1993. A contingent payment of up to $1 million in Empi stock will be made in early 1995 if certain revenue levels are achieved with the PHD product line. PHD has developed proprietary products which utilize electromyography (EMG) biofeedback to measure and display electrical activity in the muscles, and teach patients how to properly move and control those muscles. Donald Maurer, Empi's president and CEO, said: "We are very pleased to complete this transaction, which opens up new marketing opportunities worldwide and significantly expands our product lines for rehabilitation and incontinence treatment. We believe that EMG biofeedback will play a key role in the future of health care because it can save health care dollars through more efficient treatment and improved quality of care." Empi will employ a small number of PHD employees, including company founder John Church, and will integrate PHD's operations over the next several months. In late August, Empi will conduct PHD product sales training for approximately one-third of the Empi sales force. These representatives will begin selling PHD products in September, with PHD sales training and product rollout to the remainder of the sales force scheduled for early 1994. PHD's incontinence treatment products include a clinical evaluation and patient training system for pelvic muscle exercise and a personal unit for home use. They can be used in conjunction with both pelvic exercise regimens and treatment with Empi's INNOVA Feminine Incontinence Treatment System. The rehabilitation products include both home and clinical systems that, through electrode placement, provide EMG biofeedback for any muscle in the body; a belt-like device specifically designed for back injury prevention and rehabilitation; and a range of motion measurement device. All of PHD's EMG biofeedback products have patient performance monitoring technology, enabling clinicians to evaluate treatment utilization. International Sales Director Empi also announced that the company has hired Jerome J.A. Noel for the newly created position of international sales director. Noel, a 38-year old native of France, has more than 10 years of international sales management, marketing and business strategy experience. Most recently, he was international sales director for Landanger/Landos Group, a French manufacturer of orthopedic implants, trauma products and surgical instruments. He also served as division director for Laboratoire Aguettant, a French intravenous drug infusion company. NIH Grant for Development of Neurological Product In addition, Empi has received Phase II funding from the Small Business Innovation Research (SBIR) program of the National Institutes of Health (NIH).
The grant will be used over the next year to continue development of Empi's proprietary reflex testing system for motor movement disorders such as Parkinson's disease. Through a non-invasive test, the machine establishes parameters for neurologists to determine proper drug dosage for patients. "This grant should enable us to complete product development to the point where we are ready to prepare for manufacture and sale, pending regulatory clearance," Maurer said.
Empi develops, manufactures and distributes non-invasive biomedical devices and accessories for electro-therapeutic applications in physical medicine, orthopedic, rehabilitation, urogynecology and neurology markets. The company's shares are traded on the NASDAQ national market system under the symbol EMPI. -0- 08/13/93 CONTACT: Diane Rose or Marian Briggs, 612-871-8877, both of Padilla Speer Beardsley, for Empi; or Timothy Briggs of Empi, 612-639-2330 (EMPI) CO: EMPI, INCORPORATED; PHYSICAL HEALTH DEVICES, INC. IN: MTC SU: TNM ST: MN,FL
-- MN005 -- X549 08/13/93
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|Date:||Aug 13, 1993|
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