HMGN - News Hemagen Completes the Purchase of Remaining Ownership in Brazilian Subsidiary
Business Wire - February 10, 2006 11:39
COLUMBIA, Md., Feb 10, 2006 (BUSINESS WIRE) -- Hemagen Diagnostics, Inc. (OTC:HMGN.OB) a biotechnology company that develops, manufactures, and markets proprietary medical diagnostic test kits, today reported that it purchased the remaining 16.3% ownership of its Brazilian subsidiary, Hemagen Diagnosticos Comercio, Importacao Exportacao, Ltd., ("Hemagen Brazil") bringing the Company's ownership of the subsidiary to 100%. Hemagen Brazil was established in 1993 as a distributor for Hemagen's VIRGO(R) line of autoimmune and infectious disease test kits. There were originally three partners that owned 49%, and Hemagen owned 51%. In June 2004, Hemagen purchased approximately 32.6% from two of the former partners. The Company currently has nine employees in the Sao Paulo office and has recently expanded its sales force and recruited new management. Hemagen Brazil sells the Hemagen products to many of the most reputable hospitals, and commercial labs in Brazil.
William P. Hales, President and CEO, said, "The decision to own 100% of Hemagen Brazil, was a key strategic goal established some time ago to facilitate growth and management control in Brazil and South America, which we consider an important market for the company. In late 2004, we changed management after acquiring the additional 32.6% ownership and since that time Hemagen Brazil's revenue has increased by approximately 40%. In 2005, Hemagen Brazil began distributing the Company's Analyst(R) Benchtop Clinical Chemistry System to the veterinary market and we expect to register additional products in Brazil that we currently don't sell there. We commend the employees in Sao Paulo for their efforts, and look forward to increasing our growth and presence in this marketplace."
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. Hemagen also manufactures and markets a complete line of Clinical Chemistry Reagents through its wholly owned subsidiary RAICHEM. In addition, Hemagen manufactures and sells the Analyst(R) an FDA-cleared Clinical Chemistry Analyzer used to measure important constituents in human and animal blood, and the Endochek, a clinical chemistry analyzer used to measure important constituents in animal blood. 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. The Company sells the Analyst(R) and the Endochek both directly and through distributors servicing physicians' office laboratories and veterinarians' offices. Hemagen's products are used in many of the largest Laboratories, Hospitals, and Blood Banks around the world. Hemagen sells its products to over 1,000 customers worldwide. The company focuses on markets that offer significant growth opportunities. The Company was incorporated in 1985 and became a public company in 1993.
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. Forward looking statements may be identified by words such as estimates, anticipates, projects, plans, expects, intends, believes, should and similar expressions and by the context in which they are used. Such statements are based upon current expectations of the Company and speak 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, 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 reserves and adjustments, expected performance, implementation of on-going business strategies and possible future action, 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 and difficulties in complying with laws and regulations administered by the U. S. Food and Drug Administration and the ability to assimilate successfully product acquisitions.
SOURCE: Hemagen Diagnostics, Inc.
Hemagen Diagnostics, Inc., Columbia
William P. Hales, 443-367-5500
Fax: 443-367-5527
Copyright Business Wire 2006
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