Cardiovascular Systems Announces Plans for Second Manufacturing Facility
October 05 2009 - 2:45PM
Business Wire
Cardiovascular Systems, Inc. (CSI) (Nasdaq: CSII), a medical
device company developing and commercializing innovative
interventional treatment systems for vascular disease, has signed a
10-year lease agreement for a new 46,000-square-foot manufacturing
facility in Pearland, Texas. The facility is being built for CSI
and will support the production of its Diamondback 360® PAD System,
a minimally invasive catheter for treating peripheral arterial
disease (PAD), and other products.
“As demand builds for our Diamondback 360°, we need additional
manufacturing capacity to accommodate our growth, and multiple
facilities to minimize business interruption risk,” said Robert J.
Thatcher, CSI executive vice president. “We received numerous
proposals for facility locations. The State of Texas and City of
Pearland put together the most attractive economic package,
allowing us to expand quickly into a second facility. We look
forward to continuing our partnership with Texas local and state
offices, and launching manufacturing operations there.”
CSI could hire approximately 250 employees over the course of
five years to work at the Texas facility and manufacture the
Diamondback 360°. The company will also continue its manufacturing
operations in Minnesota, where it currently employs more than 100
people, including its headquarters staff, which also has been
expanding. In addition, CSI has more than 120 sales professionals
across the United States.
“CSI’s expansion in Texas is further proof that Texas remains
the best state in the nation for business. Our reasonable and
predictable regulatory climate, low taxes, skilled and educated
workforce, and programs, such as the Texas Enterprise Fund, all
come together to strengthen the state’s economy by attracting jobs
and capital investment,” Governor Rick Perry said. “This investment
in CSI is expected to bring hundreds of jobs to Texans in the
Pearland area and expand our state’s already thriving medical
technology sector.”
“Our region is well served with the addition of Cardiovascular
Systems’ manufacturing facility in Pearland,” said Jeff
Moseley, president and CEO of the Greater Houston Partnership,
primary business advocate for the 10-county Houston region.
“Coupled with the world-famous Texas Medical Center, CSI greatly
expands our medical portfolio and strengthens the region’s stature
with global companies for innovation, research and cutting-edge
technology.”
“Pearland EDC welcomes CSI to our business community,” said Fred
Welch, executive director for Pearland Economic Development
Corporation. “Our investment in this development agreement is the
result of our focus on attracting solid companies with strong
growth prospects.”
CSI has reported seven quarters of sequential revenue growth
since the company commercially launched the Diamondback 360° in
2007. For the fiscal fourth quarter ended June 30, 2009, revenue
rose to $15.7 million, a 59-percent increase over the prior-year
period. Additionally, at the end of fiscal 2009, 556 hospitals were
using the Diamondback 360°, up significantly from 183 a year
earlier. More than 15,000 procedures have been performed using the
Diamondback 360°.
CSI received $3.5 million upon the signing of the lease and
could receive up to an additional $3.5 million over five years as
milestones are met. CSI expects to begin operations in the facility
during the first half of calendar 2010. Pearland was selected as
the best location for the Diamondback 360° facility after an
extensive search process lead by Ecodev, LLC, a site selection firm
recognized for successfully uniting companies and communities in
partnerships for sustainable economic growth.
About Cardiovascular Systems, Inc.
Cardiovascular Systems, Inc., based in St. Paul, Minn., is a
medical device company focused on developing and commercializing
interventional treatment systems for vascular disease. The
company’s Diamondback 360® PAD System treats calcified and fibrotic
plaque in arterial vessels throughout the leg, and addresses many
of the limitations associated with existing surgical, catheter and
pharmacological treatment alternatives. In August 2007, the U.S.
FDA granted 510(k) clearance for the use of the Diamondback 360° as
a therapy for PAD (peripheral arterial disease), and CSI commenced
a U.S. product launch in September 2007. Since then, nearly 600
hospitals across the United States have adopted the system. For
more information visit the company’s Web site at
www.csi360.com.
Safe Harbor
Certain statements in this news release are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 and are provided under the protection of the
safe harbor for forward-looking statements provided by that Act.
For example, statements in this press release regarding (i) CSI’s
need for additional manufacturing capacity to accommodate its
growth; (ii) the number of employees to be hired at the Texas
facility; (iii) the amounts to be paid to CSI upon the achievement
of milestones; and (iv) the timing of CSI’s commencement of
operations in Texas, are forward looking statements. These
statements involve risks and uncertainties which could cause
results to differ materially from those projected, including, but
not limited to, unanticipated delays in the construction of the
facility; CSI’s actual employee and manufacturing needs; CSI’s
ability to meet milestones for additional funds; demand for CSI’s
products and CSI’s financial performance; general economic
conditions; and other factors detailed from time to time in CSI’s
SEC reports, including its Form 10-K for the fiscal year ended June
30, 2009. CSI encourages you to consider all of these risks,
uncertainties and other factors carefully in evaluating the
forward-looking statements contained in this release. As a result
of these matters, changes in facts, assumptions not being realized
or other circumstances, CSI’s actual results may differ materially
from the expected results discussed in the forward-looking
statements contained in this release. The forward-looking
statements made in this release are made only as of the date of
this release, and CSI undertakes no obligation to update them to
reflect subsequent events or circumstances.
Cardiovascular Systems (NASDAQ:CSII)
Historical Stock Chart
From May 2024 to Jun 2024
Cardiovascular Systems (NASDAQ:CSII)
Historical Stock Chart
From Jun 2023 to Jun 2024