Medical Device Technologies Inc. acquiring product line from Boehringer Mannheim Inc. and securing five year $6.0 million sales commitment.
Worldwide sales of Biotrack analyzer and cartridges in
1996 were $3.0 million, up 25 percent from 1995
Medical Device Technologies Inc. (NASDAQ Symbols: MEDD, MEDDP and MEDDW) Tuesday announced that it has acquired the Biotrack product line, including worldwide distribution rights, from Boehringer Mannheim Inc. for $1.35 million.
In connection with the acquisition, the company will acquire $1.15 million of readily useable inventory, an estimated $0.7 million in manufacturing equipment, the worldwide rights to the seven associated patents and trademarks, and manufacturing know-how. In addition, Boehringer Mannheim Gmbh has contractually guaranteed to a minimum product purchase of $1.2 million per year for the next five years, for a total of $6.0 million, for Germany alone.
The company will pursue additional distribution contracts with Boehringer affiliates in other countries, as well as expanding the existing Japan and U.S. markets. The company intends to secure additional financing which will be necessary to complete this transaction.
"The acquisition of the Biotrack product line from Boehringer Mannheim will bring immediate benefits to Medical Device Technologies," stated M. Lee Hulsebus, chairman and CEO of MEDD. "First, it gives us an immediate and ongoing profitable revenue stream; second, it establishes our access to large, international distribution channels for these and our other products; and third, it will create an opportunity for additional revenue growth as more distributors sign-up and new Biotrack disposable drug-testing cartridges enter the market."
The Biotrack product line presently consists of a small instrument analyzer and three types of disposable cartridges. The system is used in doctors' offices and central labs to measure patient blood drug levels for the most commonly prescribed therapeutic drugs to control asthma (Theophylline) and epilepsy (Carbamazepine, and Phenytoin). Two additional cartridges for epilepsy drugs are being developed to monitor Valproic Acid and Phenobarbital. Asthma and epilepsy are prevalent medical conditions throughout the world.
The Global Initiative for Asthma, in cooperation with the National Heart, Lung and Blood Institute and the World Health Organization, estimates that 100 million people worldwide have asthma. The World Health Organization estimates that 41 million people in the world have epilepsy. Doctors monitor their patients' drug levels on an ongoing basis to adequately control these diseases with drugs.
Medical Device Technologies is an incubator company that acquires or licenses technologies or products, then develops, manufactures, gains regulatory approval and distributes the resulting specialty medical devices. The company currently has three products: The Fluid Alarm System (FAS) glove monitor is being marketed as a device which detects when the infection control barrier created by surgical latex gloves has been compromised; The Cell Recovery System (CRS) is a brush-biopsy device that is entering clinical trials to compare its results to excision-type biopsies of the bladder in cancer detection; and The Intracranial Pressure Monitoring System (ICP) is being developed to non-invasively monitor the pressure within the skull of trauma or surgical patients.
This news release contains forward-looking statements regarding the company and its systems. These forward-looking statements are based largely on the company's expectations and are subject to a number of risks and uncertainties, certain of which are beyond the company's control. Actual results could vary materially from those expected due to a variety of factors, including the uncertainties of the anticipated market for and sales of the company's products, securing necessary additional financing and anticipated receipt of FDA marketing clearance and timing of such receipt for certain of the company's systems. The company undertakes no obligation to publicly release the result of any revision to these forward-looking statements which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
A current listing of all the company's information and press releases may be found at www.businesswire.com/cnn/medd.htm
CONTACT: Medical Device Technologies Inc.
Virginia S. Rybski, 619/455-7127 ext.3012
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|Date:||Jun 24, 1997|
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