To All:
More Good News
IRVINE, Calif., June 18 /PRNewswire/ -- I-FLOW Corporation (Nasdaq: IFLO)
today announced that it has significantly expanded its international sales
agreement with its German distributor, Fresenius AG, to sell its Paragon and
SideKick ambulatory infusion products in 22 countries in Europe. The original
agreement, which I-FLOW signed with Fresenius AG in late 1994, governed the
sale of the Paragon only to Germany, Switzerland and Austria. The expanded
agreement expires December 31, 2000 and will provide I-FLOW with an initial
licensing fee of $300,000 and includes minimum product purchase requirements
totaling $13.3 million. I-FLOW will retain the manufacturing rights to both
products.
Donald M. Earhart, chairman, president and chief executive officer of I-FLOW
said, "Fresenius has made a strategic decision to focus on and expand the
homecare market throughout all of Europe, and we are proud that they have
chosen I-FLOW as their partner to provide the ambulatory infusion products
they will need. Although we in the United States have had home care available
to us for some time, it is currently unavailable to the majority of Europeans.
Fresenius is intent on changing that, and they have expressed their intent to
work with our existing distributors in Europe to maximize the effectivness of
their efforts, as well as to create new distribution channels.
"I-FLOW will benefit from this agreement in several ways," Mr. Earhart
continued. "Strategically, these proven products, the foreign rights to which
we retained after selling the U.S. rights to SoloPak in March of this year,
will now be sold through virtually all of Europe, dramatically increasing our
penetration of that highly populous continent. Financially, we immediately
gain $300,000 in licensing fees and expect to receive a minimum of $13.3
million in European sales through the end of the initial term. Importantly,
at that time we will have the option of either renewing, further expanding, or
allowing the agreement to expire," he said.
I-FLOW Corporation designs, develops, and markets technically advanced
ambulatory infusion systems that administer antibiotics, analgesics,
chemotherapeutic agents, hormones, nutrients, hydration therapies and other
medical treatments to patients. The Company's products are designed for
portability, convenience, reliability, economy, and technical sophistication
so that state-of-the-art health care can be delivered at both alternate care
sites and in the hospital.
/CONTACT: Donald M. Earhart, Chairman, President and CEO, of I-FLOW,
714-553-0888; or Lou Alkana of Silverman Heller Associates, 310-208-2550/ |
