WESTBURY, N.Y.--(BUSINESS WIRE)--Vasomedical, Inc. (“Vasomedical”) (OTC: VASO.PK), a leader in the manufacture and sale of devices for the non-invasive treatment and management of cardiovascular diseases as well as a leader in the sale of diagnostic imaging products through its wholly-owned subsidiary, Vasomedical Healthcare, today announced that its newly formed subsidiary, Vasomedical Global, has signed an agreement to purchase Life Enhancement Technology Limited and Biox Instruments Co., Ltd., both of which are based in the People’s Republic of China. The purchase agreement for these accretive acquisitions provides for a cash payment at closing of $1,000,000 and the issuance of up to 7,400,000 restricted shares of the Company’s common stock, as well as warrants, part of which issuance is performance based.
Life Enhancement Technology Limited (LET), based in Foshan, Guangdong Province, China, has been for the last several years Vasomedical’s contract manufacturer for its Enhanced External Counterpulsation (“EECP”) systems including its AngioNew® and Lumenair EECP® systems. The acquisition of LET provides Vasomedical with consolidated technical and manufacturing capability in its EECP business which should significantly increase gross margins and enable the Company to meet anticipated increasing demand for its EECP systems. The original developer of the AngioNew series EECP systems, LET's twenty person administrative, engineering and manufacturing staff have an average of more than 10 years of EECP experience including production of Vasomedical's early model of EECP systems. LET operates in full compliance with ISO 13485, ISO 9001, US FDA cGMP as well as Medical Device Directive of the European Union.
Biox Instruments Co. Ltd. (Biox), located in Wuxi, Jiangsu Province, China, has been the developer and OEM partner of Vasomedical's BIOX series ambulatory ECG Holter and blood pressure monitoring (ABPM) systems for several years. A leading company in ambulatory monitoring systems and analysis software in the People's Republic of China, Biox with more than 40 employees is specialized in medical devices of low-power consumption and miniaturization. Over the years Biox has developed and accumulated substantial technology reserve in addition to the ECG Holter and ambulatory ABPM systems currently offered by Vasomedical. Also in full compliance with ISO 13485, ISO 9001, US FDA cGMP as well as Medical Device Directive of the European Union, Biox has marketed its products primarily in China. As its distributor in North America, Vasomedical successfully obtained a series of FDA clearances and now offers a complete line of BIOX products, including ECG Holter recorders, ABPM systems, combined ECG Holter/ABPM systems, as well as analysis and reporting software. The acquisition of Biox greatly enhances Vasomedical's distribution network, technology and product portfolio, and with combined market and sales efforts of the two companies, should help improve performance and profitability of Vasomedical's equipment segment.
Mr. Qiuming Shen, President of Biox Instruments, noted that the consolidation plan “further strengthens the proactive sales channel growth plan Biox has been implementing over the past few years and presents even greater sales opportunities for its highly profitable products, technology development and innovative management in a larger global marketplace.”
Mr. Xichang Li, President of Life Enhancement Technology, stated, “LET continues to develop state of the art products. It has positioned itself strategically to meet the challenge and support of anticipated increasing demand for the EECP systems worldwide.”
Dr. Jun Ma, President and CEO of Vasomedical, Inc., upon signing the agreement with Mr. Li, and Mr. Shen, commented, “This consolidation is the first step of Vasomedical’s long term strategic plan to position itself for growth and diversification in a rapidly changing and challenging global medical marketplace.” Dr. Ma stated, "While the acquisition of LET is a natural extension of our EECP business, the joining of Biox into the Vasomedical family not only enhances the Vasomedical business as a vertically integrated company but also provides access to the vast Chinese market for current and future products of Vasomedical.” Dr. Ma continued, “We anticipate the closing of these acquisitions to take place within the next two weeks. As part of our global growth strategy, we also expect to be looking for accretive acquisitions of other medical device companies.”
Vasomedical, Inc. is engaged in designing, manufacturing, marketing and supporting EECP® external counterpulsation systems based on the Company's proprietary technology. EECP® therapy is a non-invasive, outpatient therapy for the treatment of cardiovascular diseases and is currently indicated for use in cases of angina, cardiogenic shock, acute myocardial infarction and congestive heart failure. The Company provides hospitals, clinics and private practices with EECP® equipment, treatment guidance and a staff training and maintenance program designed to provide optimal patient outcomes. The Company also provides other noninvasive medical equipment including Holter monitors and ambulatory blood pressure monitors.
Vaso Diagnostics d/b/a VasoHealthcare, a wholly owned subsidiary of Vasomedical, Inc., is a professional sales representation organization offering vendors of medical devices an alternative third party sales channel. Through an agreement with GE Healthcare, it is currently engaged as an exclusive sales representative for certain GE Healthcare products. Additional information is available on the Company's website at www.vasomedical.com.
Except for historical information contained in this release, the matters discussed are forward-looking statements that involve risks and uncertainties. When used in this release, words such as “anticipates”, “believes”, “could”, “estimates”, “expects”, “may”, “plans”, “potential” and “intends” and similar expressions, as they relate to the Company or its management, identify forward-looking statements. Such forward-looking statements are based on the beliefs of the Company’s management, as well as assumptions made by and information currently available to the Company’s management. Among the factors that could cause actual results to differ materially are the following: the effect of business and economic conditions; the effect of the dramatic changes taking place in the healthcare environment; the impact of competitive procedures and products and their pricing; medical insurance reimbursement policies; unexpected manufacturing or supplier problems; unforeseen difficulties and delays in the conduct of clinical trials and other product development programs; the actions of regulatory authorities and third-party payers in the United States and overseas; uncertainties about the acceptance of a novel therapeutic modality by the medical community; continuation of the GEHC agreement; and the risk factors reported from time to time in the Company’s SEC reports. The Company undertakes no obligation to update forward-looking statements as a result of future events or developments.