Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : Matria Healthcare (MATR) -- Ignore unavailable to you. Want to Upgrade?

To: GREATMOOD who wrote (124)	3/3/1998 9:13:00 AM
From: GREATMOOD	Read Replies (1) \| Respond to of 220

Even though I felt that Adeza had a very weak case against Matria, this settlement is a lot better than risking their fate on a California jury decision. I believe that Matria has invested $10MM dollars in the development of the fFN test, and it seems that they will now be able to recoup their investment. It seems fair for both parties, and I am pleased with the settlement. GM ***************************************************** Matria and Adeza Announce Settlement of Litigation MARIETTA, Ga. and SUNNYVALE, Calif., March 3 /PRNewswire/ -- Matria Healthcare, Inc. (Nasdaq: MATR) and Adeza Biomedical Corporation announced today that a settlement has been reached in the litigation over the Exclusive Marketing Agreement under which Matria had exclusive distribution rights to Adeza's fetal fibronectin immunoassay test ("fFN Test"). The fFN Test is an immunodiagnostic test that assists in identifying women at risk to give birth prematurely. Under the terms of the settlement, Matria has agreed to relinquish its distribution rights and equity interest in Adeza in exchange for the opportunity to recoup its investment over time, based on future sales of the product. Matria will continue to distribute the fFN Test during a six-month transition period. The parties have committed to working together during the transition period to ensure that there is no disruption to their customers. With reference to the settlement, Donald R. Millard, President and Chief Executive Officer of Matria, stated that, "The settlement represents a reasonable compromise of the parties' respective rights and gives Matria an opportunity to recoup its investment in the product. Additionally, the settlement enables Matria to focus its energies on its core business, without the expense and distraction of ongoing litigation." Emory V. Anderson, President of Adeza, said, "We believe that the resolution of this litigation is an important step in our ability to serve the patient and physician community. This settlement allows Adeza to both manufacture and market the fFN Test, a valuable and cost-effective diagnostic tool for physicians in their evaluation of expectant mothers." Matria Healthcare, Inc. is the leading provider of comprehensive obstetrical homecare and maternity management services to HMO's, indemnity carriers and employers. Adeza Biomedical Corporation is a Sunnyvale, California-based biotechnology company that develops, manufactures and markets diagnostic products and services specifically for women's pregnancy and reproductive health care problems, including preterm and late birth, preeclampsia, endometriosis and infertility. This press release contains forward-looking statements that involve risks and uncertainties, including developments in the healthcare industry, third- party actions over which Matria and Adeza do not have control, and regulatory requirements applicable to Matria's and Adeza's businesses, as well as other risks detailed from time to time in reports filed with the Securities and Exchange Commission. SOURCE Matria Healthcare, Inc. CO: Matria Healthcare, Inc.; Adeza Biomedical Corporation ST: Georgia, California IN: MTC SU: 03/03/98 08:26 EST prnewswire.com