Is there anyone out there that may know what this means to LCBM? Is this a favor that Alcon is giving to LCBM to help out until Intergel is released? This is interesting and wondering if it means anything? Did LCBM give Alcon get a discount for paying this money up front?
Lifecore Receives $5,000,000 Customer Advance
CHASKA, Minn.--(BW HealthWire)--Dec. 27, 1999--LIFECORE BIOMEDICAL, INC. (Nasdaq:LCBM) announced today that it has received a $5,000,000 advance from its largest customer, Alcon Laboratories, Inc., ("Alcon"). The cash advance is to be repaid through future ophthalmic sodium hyaluronate shipments to Alcon.
Lifecore supplies hyaluronate to Alcon pursuant to a longstanding supply agreement that began with Alcon's predecessor, CILCO, Inc, in 1983. The Company's ophthalmic sodium hyaluronate is used in Viscoat(R) Ophthalmic Viscoelastic Solution, a liquid device deployed in the eye during cataract surgeries. The contract was renewed in December of 1998 with a sixth consecutive extension of terms and currently runs through December of 2000. No additional financial details were released about the transaction.
Dr. Jim Bracke, President and CEO of Lifecore, stated: "When a large marketing partner such as Alcon will work with a smaller company in this fashion to help manage cash flow, it speaks volumes about the quality of Lifecore's relationship and the importance of its product."
Certain statements in this release are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Statements implying timing or outcome of this or future financings are subject to change. Because of numerous risks and uncertainties in the complex regulatory aspects of Lifecore's business activity, actual results may differ materially from those implied. Investors are strongly cautioned to review more detailed discussions of those risks presented in the Company's reports on Forms 10-Q and 10-K.
Lifecore Biomedical manufactures biomaterials and surgical devices for use in various surgical markets and provides specialized contract aseptic manufacturing services.
Additional general corporate information is available on the Internet at lifecore.com |
