PATIENT HOME MONITORING ANNOUNCES AGREEMENT TO ACQUIRE HEALTHCARE LOGISTICS
CORPORATION
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SAN FRANCISCO, CA, Oct. 18 /CNW/ - Patient Home Monitoring (PHM) (TSXV:PHM), a company focused on in-home cardiology healthcare services, today announced an agreement to acquire Healthcare Logistics Corporation ("HLC"), a small, but innovative company located in Las Vegas, Nevada.
Under the terms of the agreement, HLC shareholders will receive a cash payment of US$1,359.00 and 100,000 shares of PHM. The acquisition of HLC is subject to obtaining all necessary regulatory approvals, including approval of the TSX Venture Exchange. The HLC platform will provide PHM with supply chain management, regulatory device reporting and home delivery of healthcare devices. As PHM grows to serve thousands of patients, there is increased complexity in ordering, managing and delivering both devices and consumables to patients in numerous locations testing on different schedules.
"Starting in August, PHM moved out of start-up phase and into full commercial mode, enrolling patients and signing up large cardiology groups" said Michael Dalsin, Chairman of Patient Home Monitoring, "PHM is now concentrating on satisfying market demand, which has been significant. Over the next 12 months, PHM has the opportunity to enjoy substantial growth with strong gross margins and limited competition in our market niche."
About the transaction, Ed Berenblum, CEO of Patient Home Monitoring, said, "Acquiring the HLC platform solves a key problem for PHM. Once a patient is enrolled and trained, it is important to immediately get the patient testing using an in-home meter. The sooner these patients test, the sooner they can realize the health benefits from PHM's service and, in turn, the sooner PHM can realize cash flow from our services."
"During our start-up phase," Mr. Berenblum continued, "we were cautious about investing significantly into a logistics solution. While this was acceptable for a limited amount of patients in start-up mode, today PHM must now serve a rapidly growing patient base, and our current logistics solution was not sustainable. By acquiring HLC, we can start to reduce the days between training and delivery of a testing device to a patient in the home. Additionally, we can free up capacity with our clinically-focused call center specialists in San Francisco previously working part-time on logistics."
PHM will start using the Las Vegas, Nevada facility by November 1, 2010 for device and testing supplies logistics.
About PHM
PHM is a healthcare services company focused on providing in-home testing for patients on blood thinner medications such as Coumadin or warfarin. Medicare recently expanded reimbursement for in-home patient self testing (PST) of blood coagulation levels. PHM has a unique value proposition to cardiology groups that manage patients on blood thinners, focusing on systemization to enroll patients in PST. This unique, systemized approach creates an opportunity for physician groups to operate more efficiently, increasing revenue to their clinic while providing a higher standard of care for patients.
Information in this news release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws. Implicit in this information, particularly in respect of the future outlook of PHM and anticipated events or results, are assumptions based on beliefs of PHM's senior management as well as information currently available to it. While these assumptions were considered reasonable by PHM at the time of preparation, they may prove to be incorrect. Readers are cautioned that actual results are subject to a number of risks and uncertainties, including the availability of funds and resources to pursue operations, decline of reimbursement rates, dependence on few payors, possible new drug discoveries, a novel business model, dependence on key suppliers, granting of permits and licenses in a highly regulated business, competition, low profit market segments as well as general economic, market and business conditions, and could differ materially from what is currently expected.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this statement.
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For further information: For further information:
Michael Dalsin Chairman, Patient Home Monitoring Managing Director, Stanmore Capital Partners, Inc. (323) 253-3055 [email protected] |
Michael Moore Investor Relations Equicom Group 619-467-7067 [email protected] |
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