HealthTronics Gains Exclusive Control of HMT's Urology Devices - Plans to Pursue New Markets and Enhance Margins
September 29 2005 - 5:18PM
Business Wire
HealthTronics, Inc. (NASDAQ:HTRN), today announced that it acquired
all of the patents and other intellectual property for the
urological devices formerly manufactured by High Medical
Technologies (HMT) of Lengwil, Switzerland. The acquisition ensures
HealthTronics' exclusive ownership and control of the patents,
trademarks and manufacturing rights pertaining to the LithoDiamond
and LithoTron lithotripters and the patent-protected electrodes
utilized by these devices. The acquisition gives HealthTronics
flexibility to locate production in a cost-efficient environment
and also enables market-specific modifications to the devices that
can pave the way for greater sales opportunities in international
markets. In January 2005, HMT filed for bankruptcy in Switzerland
after HealthTronics (which then owned a minority of the economic
interests in HMT) elected to discontinue future funding of HMT's
operations with the goal of defining control of HMT's technology.
Following the bankruptcy filing, HealthTronics acquired HMT's
commercial bank debt at a substantial discount to become HMT's
largest creditor. HealthTronics was able to acquire HMT's
intellectual property at a favorable price that ensures a quick
return of its invested capital and should enhance operating margins
in its Medical Device Division. Christopher B. Schneider, President
of HealthTronics' Medical Device Division, stated, "Our physician
partners and customers drove our decision to acquire these
technologies. Since January, we have seen continued strong global
demand for new LithoDiamond systems and consumable electrodes for
the existing installed base. Most importantly, our role as the
leading provider of lithotripsy services and equipment in the
United States was the key to our success in securing exclusive
control of these technologies at a very attractive cost." About
HealthTronics, Inc. HealthTronics provides healthcare services,
primarily to the urology community, and manufactures medical
devices as well as specialty vehicles used for the transport of
high technology medical and broadcast & communications
equipment. For more information, visit www.healthtronics.com.
Statements by HealthTronics' management in this press release that
are not strictly historical, including statements regarding plans,
objective and future financial performance, are "forward-looking"
statements that are made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. Although
HealthTronics believes that the expectations reflected in such
forward-looking statements are reasonable, no assurance can be
given that the expectations will prove to be correct. Factors that
could cause actual results to differ materially from HealthTronics'
expectations include, among others, the existence of demand for and
acceptance of HealthTronics' services, economic conditions, the
impact of competition and pricing, financing efforts and other
factors described from time to time in HealthTronics' periodic
filings with the Securities and Exchange Commission.
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