Thursday June 1, 8:35 am Eastern Time
Company Press Release
Technical Chemicals and Products to Acquire Roche Diagnostics' Worldwide OTC Pregnancy and Ovulation Testing Business
Acquisition Provides An Opportunity For Worldwide Expansion Of HealthCheck(R) And Other TCPI Diagnostic Products
POMPANO BEACH, Fla.--(BUSINESS WIRE)--June 1, 2000-- Technical Chemicals and Products, Inc. (Nasdaq:TCPI - news), a manufacturer and worldwide marketer of point-of-care medical diagnostic products, today announced that the Company's wholly-owned subsidiary, TCPI Holdings, Inc., has signed a purchase agreement to acquire the worldwide over-the-counter (OTC) pregnancy and ovulation self testing business assets of Roche Diagnostics GmbH, including trademarks and distribution rights related to these products.
The worldwide OTC home pregnancy and ovulation business assets being acquired by TCPI generated more than US$7 million in sales last year and was profitable. These assets are being acquired for US$7 million in cash payable on a scheduled basis according to the terms of the agreement, including required country-specific contracts to be completed when the transfers of regulatory authorization and/or product registration by local health agencies become effective.
``This acquisition is an excellent complement to our existing diagnostics business that we anticipate will more than double TCPI's 1999 sales as the local acquisitions are completed. It also provides forward integration in moving us closer to the end users of our OTC testing products distributed under the EVATEST© (pregnancy) and EVAPLAN© (ovulation) and other similar trademarks,'' said Elliott Block, Ph.D., Chief Executive Officer of Technical Chemicals and Products, Inc. ``We expect to provide a broader product offering in the future through the export and sale of our HealthCheck© and other OTC diagnostic products as well as geographic expansion into key markets in Latin America and Europe,'' Block added.
Since 1992, the Company has been the exclusive manufacturer of OTC family planning products for Boehringer Mannheim Italy S.p.A., which distributed these products in many countries throughout the world. In 1998, the entire Boehringer Mannheim organization was acquired by Hoffmann LaRoche Basel, Switzerland which strategically focused on core businesses that resulted in a decrease in TCPI's production volume and sales during this period. ``This acquisition will position us to re-focus marketing efforts in this important OTC diagnostic business,'' Block stated.
In South America, TCPI plans to assimilate the OTC diagnostic marketing and sales team based in Buenos Aires, Argentina where these family planning products command a 70% market share and EVATEST is a prominent trademark for OTC home pregnancy tests. In Europe, the Company established its initial presence last year with the opening of its international sales and marketing office in Milan, Italy. |
