ST. LOUIS, Mo., and ELYRIA, Ohio, Oct. 2 /PRNewswire/ -- Mallinckrodt Inc.
(NYSE: MKG) and Invacare Corporation (NYSE: IVC) announced today that the
companies are forging a strategic alliance involving two major initiatives.
The first initiative establishes a distribution agreement between the two
companies in which Invacare will distribute Mallinckrodt's complete line of
oxygen therapy products. This expands Mallinckrodt's existing distribution
capabilities by adding selected Puritan Bennett(R) oxygen therapy products to
Invacare's Total One Stop Shopping program.
The second initiative involves Mallinckrodt's decision to discontinue the
production and manufacturing of its Puritan Bennett 590 series oxygen
concentrators. In order to protect the investment of its customers,
Mallinckrodt has selected Invacare to provide comprehensive North American
support for the 590 series oxygen concentrators, including warranty and
non-warranty repairs, service parts, phone support and technical training.
In anticipation of accelerated customer demand, Invacare already has increased
production of the Invacare(R) 5LX and 5LXO2 oxygen concentrators to ensure an
adequate supply of units is available for Mallinckrodt's concentrator
customers.
Mallinckrodt's decision to close its oxygen concentrator production
facility in St. Charles, Mo., and transition this business over to Invacare,
as well as its decision to make Invacare a distribution partner, was largely
driven by its decision to focus on a strategy of developing products that are
technologically innovative.
In addition to the agreement regarding the oxygen concentrator product
line, Invacare will become a distributor of Mallinckrodt's other Puritan
Bennett oxygen therapy products, including HELiOS(TM), a breakthrough liquid
oxygen system introduced earlier this year, and the OxiClip(TM) PC 20 personal
oxygen conserver.
Commenting on the strategic alliance, Forrest Whittaker, president of
Mallinckrodt's Respiratory division, said, "Forging this alliance with
Invacare, the global leader in the manufacture and distribution of home
medical products, means that ultimately consumers will be best served because
providers now will have many options available to them for purchasing these
products which consumers rely on daily. The addition of our Puritan Bennett
products to Invacare's 'one-stop shop' will add value for Invacare's customers
and should expand the sales of our products. The alliance also will make it
possible for us to focus our resources and energy on the development of other
new and innovative products and services that have a profound impact on the
quality of life for respiratory patients."
Also commenting on the strategic alliance, Invacare's chairman and chief
executive officer, A. Malachi Mixon, III, said, "Invacare is extremely
pleased to partner with Mallinckrodt by participating in this strategic
alliance. Our industry-leading distribution capability, fortified by the
industry's largest single sales organization, superior customer service
capability and Total One Stop Shopping program, will allow us to provide
world-class service not only to our own customers but also to new customers
who are attracted to Mallinckrodt's Puritan Bennett line of oxygen therapy
products."
Although Invacare now will be distributing Mallinckrodt's line of oxygen
therapy products, Mixon noted Invacare will not lose its own focus on
respiratory product development. "Invacare has had a sustained, concentrated
commitment to innovation and technology which has enabled us to become the HME
industry leader. We will continue this focus as we are always pushing the
envelope in developing new methods and ideas, but we will continue to build on
our distribution strength through strategic alliances."
Both Invacare's Mixon and Mallinckrodt's Whittaker said they share a
commitment for uninterrupted service to their home medical equipment customers
and to patients who are dependent on oxygen therapy. "There is a large
installed base of concentrators in the marketplace today, and we are committed
to protecting its value for those who rely on these extremely necessary
products," Mixon and Whittaker said.
In the coming weeks, Mallinckrodt and Invacare will contact customers
directly to outline the transition strategy and timeline for initiating
implementation of the agreement.
Mallinckrodt Inc. is a global manufacturer and marketer of specialty
medical products designed to sustain breathing, diagnose disease and relieve
pain. Named one of America's most admired medical products and equipment
companies by Fortune magazine, Mallinckrodt does business in more than
100 countries. In fiscal 2000, combined net sales were $2.7 billion for
Mallinckrodt's respiratory, imaging and pharmaceutical product lines. Based
in St. Louis, Mo., Mallinckrodt's website address is http://www.mallinckrodt.com .
Invacare Corporation (NYSE: IVC) is the global leader in the manufacture
and distribution of innovative home medical products which promote recovery
and active lifestyles through more than 25,000 providers. The company, which
had 1999 revenues of $878 million, goes to market in the following channels of
distribution: home care, mass retail and institutional. Within these channels
of distribution, Invacare participates in the following product segments: Home
Care, which includes rehab products, respiratory products, manual wheelchairs,
home care beds, therapeutic support surfaces and personal care products
marketed by Invacare's Home Care Group; Soft Goods and Supplies, which
includes ostomy, incontinence, wound care and diabetic supplies marketed by
Invacare Supply Group; and Institutional, which includes nursing home beds,
patient lifts and slings, nursing home furniture and bathing systems marketed
by Invacare Continuing Care Group. The company's headquarters are in Elyria,
Ohio, and the firm has manufacturing plants in the United States, Australia,
Canada, Denmark, Germany, France, Mexico, New Zealand, Portugal, Sweden,
Switzerland and the United Kingdom. For more information about the company,
visit Invacare's website at http://www.invacare.com .
SOURCE Mallinckrodt Inc.
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Related links:
http://www.mallinckrodt.com
Company News On-Call:
http://www.prnewswire.com/comp/440950.html or fax,
800-758-5804, ext. 440950
Contact: Media, Barbara Abbett, 314-654-5230, e-mail,
barbara.abbett@mkg.com, or Investors, Robert Martsching,
314-654-3190, e-mail, Invest@mkg.com, both of Mallinckrodt Inc.;
Media, Susan A. Elder, 440-329-6549, or Investors, John Bingle,
440-329-6379, both of Invacare Corporation
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