WAYNE, Pa., June 5 /PRNewswire-FirstCall/ -- Escalon Medical Corp.
(Nasdaq Capital Market: ESMC) announced today that on May 30, 2008 its
wholly owned subsidiary, Drew Scientific, Inc. ("Drew") acquired JAS
Diagnostics, Inc. ("JAS"). JAS is a privately-held manufacturer of class I
and II in vitro diagnostics ("IVD") reagents that markets its products to
physician, reference, hospital and veterinary laboratories throughout the
world. JAS, based in Miami, Florida, generates annual revenues of
approximately $2.0 million. Drew purchased 100% of the outstanding shares
of JAS for approximately $1,200,000 in cash and $800,000 in notes payable.
"Consistent with our strategic objective to expand our presence in the
reagent segment of the IVD market, we are pleased to announce the
acquisition of JAS, a value-creating bolt-on acquisition that adds
intangible assets to the Drew existing product line," said Richard J.
DePiano Sr., Chairman and Chief Executive Officer. "JAS' strong customer
relationships, well-respected product portfolio, and research and
development competencies will be an excellent complement to our Drew
business. While Drew is focused on the equipment side of the IVD business,
JAS synergistically expands our current position into the clinical
chemistry consumable market. We look forward to the JAS team becoming part
of our organization and contributing to our future growth."
JAS was established in 2000 and specializes in the manufacture of a
broad range of liquid stable, diagnostics chemistry reagents used in IVD
tests. Many of these reagents are single vial stable, which offer ease of
use, increased speed of results, and extended on-board stability, among
other superior performance characteristics. JAS has CE marks for marketing
for its products in Europe, along with ISO 9001 certification. JAS offers
over 150 products and has obtained FDA 510(k) marketing clearance and CLIA
classification for its manufactured products as required. Notably, JAS
reagent instrument applications are available for numerous chemistry
analyzers including Beckman Synchron Series(R), Olympus 400/640(TM), Alfa
Wassermann ACE/Alera(TM), Roche Hitachi 700 & 900 Series(R), Roche Cobas
Mira(R), among others. The names of these instruments are trademarks of
their respective companies.
Mr. DePiano added, "Looking ahead, we will continue to explore
opportunities that we believe are a strategic fit with our overall
corporate objectives."
Founded in 1987, Escalon (http://www.escalonmed.com) develops markets and
distributes ophthalmic diagnostic, surgical and pharmaceutical products as
well as vascular access devices. Drew Scientific, which operates as a
separate business unit, provides instrumentation and consumables for the
diagnosis and monitoring of medical disorders in the areas of diabetes,
cardiovascular diseases and hematology, as well as veterinary hematology
and blood chemistry. Escalon seeks to utilize strategic partnerships to
help finance its development programs and is also seeking acquisitions to
further diversify its product line to achieve critical mass in sales and
take better advantage of Escalon's distribution capabilities, although such
partnerships or acquisitions may not occur. Escalon has headquarters in
Wayne, Pennsylvania and manufacturing operations in Long Island, New York,
New Berlin, Wisconsin, Dallas, Texas, Waterbury, Connecticut and
Barrow-in-Furness, U.K.
Note: This press release contains statements that are considered
forward- looking under the Private Securities Litigation Reform Act of
1995, including statements about the Company's future prospects. These
statements are based on the Company's current expectations and are subject
to a number of uncertainties and risks, and actual results may differ
materially. The uncertainties and risks include whether the Company is able
to:
-- implement its growth and marketing strategies, improve upon the
operations of the Company's business units, including the integration
of any acquisitions it may undertake, if any, of which there can be no
assurance,
-- implement cost reductions,
-- generate cash,
-- identify, finance and enter into business relationships and
acquisitions.
Other factors include uncertainties and risks related to:
-- new product development, commercialization, manufacturing and market
acceptance of new products,
-- marketing acceptance of existing products in new markets,
-- research and development activities, including failure to demonstrate
clinical efficacy,
-- delays by regulatory authorities, scientific and technical advances by
Escalon or third parties,
-- introduction of competitive products,
-- third party reimbursement and physician training, and
-- general economic conditions.
Further information about these and other relevant risks and
uncertainties may be found in the Company's report on Form 10- K for year
ended June 30, 2007 and on Form 10Q for the quarter ended March 31, 2008,
and its other filings with the Securities and Exchange Commission, all of
which are available from the Securities and Exchange Commission as well as
other sources.
SOURCE Escalon Medical Corp.
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Related links:
http://www.escalonmed.com
CONTACT:
Richard J. DePiano, Chairman and CEO of
Escalon Medical Corp., +1-610-688-6830; or Joseph Calabrese of
Financial Relations Board, +1-212-827-3772, for Escalon Medical
Corp.
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