Company Press Release
Wednesday January 14, 9:00 am Eastern Time
SOURCE: AccuMed International, Inc.
AccuMed Creates New Cytopathology Company
With Sakura and Other Strategic Partners
Joint Venture to Integrate Systems, Speed New Products to Market
CHICAGO, Jan. 14 /PRNewswire/ -- AccuMed International, Inc. (Nasdaq: ACMI - news) today announced an equity carve-out of a portion of its cytopathology assets into a new company (NewCo) for the development
of advanced imaging-based cytology systems and testing procedures. Sakura Finetechnical Co., Ltd. (Tokyo, Japan), through its U.S.
subsidiary, and other strategic partners will contribute capital and
a commitment for technology to the new venture, according to Peter P. Gombrich, Chairman and CEO of AccuMed.
Gombrich, who will serve as Chairman of the new entity, explained that an initial combined capital infusion of greater than $6 million will come from NewCo's partners and investors. ''AccuMed will retain at least 50% ownership of NewCo,'' he said. ''This strategic move allows AccuMed to reduce the portion of its operational costs dedicated
to continuing cytopathology R&D and adds significant credibility to the AccuMed strategy. We expect this will allow products to be brought to market more quickly and anticipate earlier profitability for AccuMed.'' Gombrich explained that current AccuMed
shareholders will benefit from the creation of the new enterprise by retaining undiluted ownership in AccuMed while receiving significant ownership in NewCo.
Sakura, a global leader in instrumentation and disposables for histology and cytology laboratories, will participate in NewCo through an equity contribution. Sakura is a
privately-held company in business for 125 years with 800 employees worldwide and is the market leader in automated laboratory instrumentation, including Tissue-Tek(R) tissue processors, embedding centers, slide stainers and slide cover slippers and
Cyto-Tek(R) cytology centrifuges. Gombrich reported that several
other complementary strategic partners have been identified and have given an initial commitment to join the venture based on the synergistic nature of their product lines, core technologies and
international market positions.
AccuMed's contribution to NewCo will include its two-thirds ownership in Oncometrics Imaging Corp., as well as the advanced TracCell(TM) system (3000 series), telepathology, image archiving and other identified products and technologies. In addition to operational management, AccuMed will provide contract manufacturing for
NewCo products and will receive a revenue stream from the sale of all future TracCell-related products. AccuMed will retain rights to all current products and development on the microbiology side of the business; the current AcCell(TM) Cytopathology System including the TracCell 2000 Slide Mapping System; and the AcCell 3000 fully-integrated microscopy workstation, due for market entry in the second quarter of 1998.
NewCo's initiative will be to focus on the further development of imaging- based cytopathology products that support the review and analysis of cervical Pap smears and other cytology preparations, including specimen collection, slide management and mapping, and critical data management functions. This will include completion of
development, clinical trials and market launch of the advanced TracCell (3000 series)and the AcCell-Savant(TM). NewCo will develop additional products, such as telepathology and image archiving, in conjunction with several of its strategic partners.
Distribution and OEM relationships are expected to be maintained and further established between AccuMed, Leica Microscopie und Systeme GmbH (Wetzlar, Germany) and the strategic partners for its products.
Dr. Norman Pressman, NewCo's President, indicated that this announcement signals a major initiative to speed innovative cytopathology products to the international marketplace. ''By carving out those products that require some additional development,
and by working closely with our strategic partners, we can focus specific resources on bringing products to the market earlier,'' he said. ''Laboratories are realizing the benefits that our
AcCell system can deliver, much of it due to our integrated approach to addressing the laboratory's needs, and we want to build on the early success of this technology platform with a continuing stream of enhanced products.''
Takashi Tsuzuki, President of Sakura Finetek USA, Inc., spoke of the significant synergy between the AccuMed and Sakura product lines. ''Both companies provide technology-driven systems that address
a need for quality and cost-effectiveness. Even though our product lines are compatible today, there is immediate opportunity to fully
integrate some of our systems with future products like the TracCell 3000 and the AcCell-Savant. We believe there is great potential for the AcCell system to benefit the pathology laboratory, an important part of our customer base,'' he said.
AccuMed International, Inc., headquartered in Chicago, is a global advanced diagnostics and information solutions company. AccuMed is an emerging leader in integrated, technology-driven systems that accommodate the clinical laboratory's need to maintain quality while achieving more cost- effective operation. The Company manufactures
and markets a full line of proprietary, FDA-cleared bacterial microbiology disposable tests and instruments and integrated automated cytopathology systems.
Except for the historical information contained herein, the matters discussed in this news release are deemed ''forward-looking statements'' under federal securities laws that involve risks and uncertainties. Actual results may differ materially from those in the
forward-looking statements depending on a number of factors, including, among other things, the ability to maintain long-term relationships with corporate partners, the ability
to bring products to market through the regulatory approval process, uncertainty of future profitability, financing requirements, and other factors detailed in AccuMed's filings with
the Securities and Exchange Commission.
SOURCE: AccuMed International, Inc. |
