Cytyc Agrees to Acquire Key Supplier
PR Newswire - December 13, 1999 16:57
BOXBOROUGH, Mass., Dec. 13 /PRNewswire/ -- Cytyc Corporation (Nasdaq: CYTC) today announced that it has signed an agreement to acquire Acu-Pak, Inc., a contract packager specializing in liquid reagent filling. Acu-Pak, Inc., is a privately owned business in Londonderry, New Hampshire, that currently manufactures, fills, and distributes all of Cytyc's solutions for its ThinPrep(R) line of products. This includes PreservCyt(R) for the ThinPrep(R) Pap Test(TM) as well as general cytology products.
The cash purchase price of $4 million for the business and $2 million for the premises will be funded from the Company's existing cash reserves. The acquisition is expected to be completed in January 2000.
"The acquisition of Acu-Pak, Inc., will secure our source of supply and provide favorable pricing continuity for key elements of the ThinPrep System," said Patrick J. Sullivan, Cytyc's president and chief executive officer. "We will now be in a better position to meet the increased demands on production from the continued growth in market share of the ThinPrep Pap Test."
"Acu-Pak has been an outstanding vendor, consistently providing quality manufacturing, timely deliveries and responsiveness," said Ted Geiselman, Cytyc's vice president of technical operations. "Our growth has significantly increased the proportion of Acu-Pak's manufacturing that is dedicated to Cytyc products. This acquisition allows us to further ensure that we will continue to provide our customers with the quality and timely delivery they have come to expect."
Cytyc Corporation develops, manufactures, and markets the ThinPrep(R) System for medical diagnostic applications. The ThinPrep System consists of the ThinPrep(R) 2000 Processor and related reagents, filters, and other supplies. Since introduction, Cytyc has manufactured more than 1,000 ThinPrep 2000 Processors and 10 million ThinPrep(R) Pap Tests for cervical cancer screening.
Cytyc(R) and ThinPrep(R) are registered trademarks and ThinPrep(R) Pap Test(TM) is a trademark of Cytyc Corporation.
Forward-looking statements in this press release are made pursuant to the provisions of Section 21E of the Securities Exchange Act of 1934. Investors are cautioned that statements in this press release which are not strictly historical statements, including, without limitation, statements regarding management's plans and objectives for future operations, product plans and performance, potential savings to the healthcare system, management's assessment of market factors, as well as statements regarding the strategy and plans of the Company, constitute forward-looking statements which involve risks and uncertainties, including, without limitation, risks associated with the Company's dependence on a single product, uncertainty of market acceptance and additional cost, dependence on timely and adequate levels of third-party reimbursement, CPT code implementation delays and delays in reimbursement, risks associated with potential year 2000 software disruptions involving the products and systems of the Company and certain third party customers, suppliers, and payers, limited marketing and sales experience, and limited number of customers and lengthy sales cycle, as well as risks of downturns in economic conditions generally, and in the healthcare industry specifically, risks associated with competition and competitive pricing pressures, potential liabilities and costs associated with litigation, and other risks detailed in the Company's filings with the Securities and Exchange Commission, including in its 1998 Form 10-K filed with the Commission.
SOURCE Cytyc Corporation
I'm in CYTC as of yesterday.
Of course, it goes down as usual. :-)
Jack |
