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FOR IMMEDIATE RELEASE
August 31, 1998
CARDIOVASCULAR DIAGNOSTICS AND CHIRON DIAGNOSTICS SIGN GLOBAL DISTRIBUTION AGREEMENT
--Chiron makes $6 million equity investment at $10 per share in CVDI--
Raleigh, N.C. and Walpole, Mass. - August 31, 1998 - Cardiovascular Diagnostics, Inc. (NASDAQ: CVDI) ("CVDI"), manufacturer of rapid turnaround near-patient coagulation tests, and Chiron Diagnostics ("Chiron"), a world leader in critical care diagnostics and a business unit of Chiron Corporation (NASDAQ: CHIR), today announced the signing of a global distribution agreement for certain CVDI diagnostic coagulation tests.
As demonstration of Chiron’s commitment to the agreement, Chiron agreed to purchase $6 million of CVDI common stock at $10 per share, increasing the total shares outstanding to 7.4 million. CVDI’s coagulation products are complementary to Chiron’s leading market position in blood gas analysis as well as its strategy to bring new total solutions to the point of care (POC).
"Chiron represents a committed distribution partner with a strong global presence and a shared strategy for expanding rapid diagnostic platforms into critical care settings," said John Funkhouser, President and CEO of CVDI. "This agreement reflects the synergies between the two companies’ technologies, and further validates our coagulation technology, the Thrombolytic Assessment System ("TAS"). In addition, Chiron’s considerable presence in the specialized areas of the hospital will facilitate the placement of TAS analyzers and provide a foundation upon which to expand distribution of future CVDI theranostic tests."
For Chiron, CVDI’s coagulation technology represents an opportunity to leverage Chiron’s market leadership in critical blood analysis with other critical care platforms. Chris Gleeson, Senior Vice President and General Manager, Critical Care, commented, "Rapid coagulation is essential to our ability to offer comprehensive solutions for the critical care environment. We are very excited about our new partnership with CVDI. This is the first of a number of collaborations that will re-define our critical care product portfolio. Chiron intends to build on its market leadership heritage in critical care by developing or partnering with innovative rapid diagnostic platforms and information systems for point-of-care settings."
Chiron is a world leader in the critical care testing arena, having established the industry standard in critical blood analysis for the central laboratory. In the fourth quarter of 1998, the company will release the Rapidpoint‘ 400 Critical Care System, a fully automated, maintenance-free whole blood analysis system for point-of-care, near-patient and alternate-site testing. Designed to meet the specific testing needs of the critical care environment, the Rapidpoint 400 is expected to be an integral part of the total critical care system solution designed to provide rapid, clinically valuable and cost-effective information throughout the point-of-care and laboratory environments.
Chiron expects to launch CVDI’s products separately, and will also offer the tests as part of the Rapidpoint Critical Care and Rapidlink Critical Care Information Systems. The inclusion of coagulation will contribute to Chiron’s goal of providing a total critical care testing solution through Rapidsystem platforms. Chiron expects to begin marketing CVDI’s tests in the U.S. beginning January 1999, upon the expiration of CVDI’s current distribution agreements with Dade Behring and Avecor Cardiovascular.
CVDI manufactures two types of disposable near-patient coagulation tests used on a single analyzer. The first type is used to monitor currently available anti-coagulant therapy, primarily heparin and coumandin, within the hospital. The competitive advantage of these rapid diagnostic tests over traditional coagulation testing, primarily performed in the central laboratory, is speed and ease of use. Because these diagnostic products are used extensively to monitor patients in critical care settings, Chiron is an excellent strategic fit for global distribution of CVDI’s diagnostic tests.
Additionally, future CVDI tests will monitor new therapeutics presently under development by large pharmaceutical partners for primary use in critical care settings. This second type of test being developed by CVDI is defined as "theranostic" tests because of their ability to monitor the impact of a therapeutic. Presently, CVDI is developing theranostic tests for drugs being developed for sepsis, stroke and unstable angina. Chiron also has a contingent right to distribute CVDI’s theranostic tests outside the U.S. CVDI’s comprehensive menu of diagnostic and theranostic tests operating on the same analyzer should complement Chiron’s other critical care product lines and enhance market acceptance of CVDI’s platform technology.
Chiron Diagnostics Corporation is an international leader in in vitro diagnostics focusing on critical blood analysis, clinical chemistry, endocrinology, infectious disease, allergy, and oncology. The company has operations in 20 countries, sells its products in more than 90 countries, and employs approximately 3,000 people. Chiron Diagnostics is a business unit of Chiron Corporation, with headquarters in Emeryville, California.
CVDI, Inc. develops, manufactures and markets rapid turnaround diagnostics to assess blood clot formation and dissolution. CVDI develops tests based on its proprietary, dry chemistry Thrombolytic Assessment System (TAS) for powerful new therapeutics some of which have narrow ranges between over- and under-dosage, which represent CVDI’s principal target market, as well as for monitoring routine anticoagulants. CVDI’s therapeutic diagnostics are used in the treatment of angina, myocardial infarction (heart attack), stroke, deep venous thrombosis, and pulmonary and arterial emboli.
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This press release contains forward-looking statements regarding future events and the future performance of CVDI, Inc. and Chiron Diagnostics that involve risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements. Information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the Company’s SEC filings, including Form 10-K, Form 10-Q and Form 8-K reports.
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