BioTelemetry, Inc. Announces Significant Patent Litigation Victory and the Acquisition of Mednet Healthcare Technologies, Inc...
February 03 2014 - 8:00AM
BioTelemetry, Inc. (Nasdaq:BEAT), the leading wireless medical
technology company focused on the delivery of health information to
improve quality of life and reduce cost of care, announced today a
significant victory in the patent infringement case against Mednet
Healthcare Technologies, Inc. and its subsidiaries, Heart-Care
Corporation of America, Universal Medical Inc., and Universal
Medical Laboratory, Inc. ("Mednet"), as well as other named
defendants. Mednet entered into a consent judgment, declaring that
the Mednet entities infringed on five patents owned by BioTelemetry
and its subsidiary, Braemar Manufacturing, and that all five
patents are valid.
The lawsuit, which was filed in the U.S. District Court for the
Eastern District of Pennsylvania in May 2012, centered on patented
technology used in BioTelemetry's Mobile Cardiac Outpatient
Telemetry (MCOTTM). A litigation team from Ropes & Gray
represented BioTelemetry in the case.
Following the entry of the consent judgment, BioTelemetry
acquired all outstanding shares of Mednet for an aggregate purchase
price of approximately $16.0 million, consisting of $5.5 million of
cash, $0.8 million of BioTelemetry common stock and the assumption
of $9.7 million of debt. Mednet's core competencies include
outpatient cardiac monitoring and contract manufacturing of cardiac
monitoring devices.
Joseph H. Capper, President and Chief Executive Officer of
BioTelemetry, commented, "I believe the acquisition of Mednet is
the best possible outcome for all involved. While an
unorthodox path to such a combination, the company will benefit
from Mednet's more than $25 million in annual revenue and its
reputation for world class customer service. We expect the
acquisition to be accretive, adding $4.0 to $5.0 million of EBITDA
post-integration. We are pleased to add the Mednet employees to the
BioTelemetry team and look forward to continuing to provide
superior service to their many loyal customers."
Christopher Keane, President of Mednet, commented, "This merger
is the perfect fit for the Mednet family. It will allow Mednet
to continue to provide unparalleled service while allowing us to
offer Biotelemetry's industry leading technology to our customers."
About BioTelemetry
BioTelemetry, Inc., formerly known as CardioNet, Inc., is the
leading wireless medical technology company focused on the delivery
of health information to improve quality of life and reduce cost of
care. The Company currently provides cardiac monitoring
services, original equipment manufacturing with a primary focus on
cardiac monitoring devices and centralized cardiac core laboratory
services. More information can be found at
www.biotelinc.com.
Cautionary Statement Regarding Forward-Looking
Statements
This document includes certain forward-looking statements within
the meaning of the "Safe Harbor" provisions of the Private
Securities Litigation Reform Act of 1995 regarding, among other
things, the impact of the Mednet acquisition on our operations and
our ability to successfully integrate their operations, the
prospects for our products and our confidence in the Company's
future, as well as our expectations regarding the effect the United
contract will have on the company's operating results. These
statements may be identified by words such as "expect,"
"anticipate," "estimate," "intend," "plan," "believe," "promises"
and other words and terms of similar meaning. Such
forward-looking statements are based on current expectations and
involve inherent risks and uncertainties, including important
factors that could delay, divert, or change any of these
expectations, and could cause actual outcomes and results to differ
materially from current expectations. These factors include,
among other things, effects of changes in health care legislation,
effectiveness of our cost savings initiatives, relationships with
our government and commercial payors, changes to insurance coverage
and reimbursement levels for our products, the success of our sales
and marketing initiatives, our ability to attract and retain
talented executive management and sales personnel, our ability to
identify acquisition candidates, acquire them on attractive terms
and integrate their operations into our business, the
commercialization of new products, market factors, internal
research and development initiatives, partnered research and
development initiatives, competitive product development, changes
in governmental regulations and legislation, the continued
consolidation of payors, acceptance of our new products and
services, patent protection, adverse regulatory action, and
litigation success, our ability to successfully create a new
holding company structure and to anticipate the benefits of such
structure. For further details and a discussion of these and
other risks and uncertainties, please see our public filings with
the Securities and Exchange Commission, including our latest
periodic reports on Form 10-K and 10-Q. We undertake no
obligation to publicly update any forward-looking statement,
whether as a result of new information, future events, or
otherwise.
CONTACT: BioTelemetry, Inc.
Heather C. Getz
Investor Relations
800-908-7103
investorrelations@cardionet.com
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