HEM » Topics » HemoSense Signs Definitive Agreement to be Acquired by Inverness

This excerpt taken from the HEM DEFA14A filed Aug 8, 2007.

HemoSense Signs Definitive Agreement to be Acquired by Inverness

SAN JOSE, Calif. (August 7, 2007) – HemoSense, Inc. (AMEX: HEM) – a point of care diagnostic healthcare company that has developed, manufactures and sells easy-to-use, handheld blood coagulation monitoring systems for use by patients and healthcare professionals in the management of warfarin medication – today reported financial results for the three and nine months ended June 30, 2007. As announced yesterday, HemoSense and Inverness Medical Innovations (AMEX: IMA) have entered into a definitive agreement for Inverness to acquire HemoSense in an all stock transaction. Under terms of the agreement, each holder of a share of HemoSense common stock will receive 0.274192 shares of Inverness common stock, which represents a 37.5% premium based on the average trading prices of both companies over the five trading days prior to yesterday.

 

   

Total revenue for the fiscal 2007 third quarter was $9.2 million, an increase of 101% from total revenue of $4.6 million in the fiscal 2006 third quarter. Domestic revenue was $8.0 million and international revenue was $1.2 million, representing increases of 115% and 41%, respectively, compared with the same quarter in the prior year. Total revenue included $6.9 million in revenue for INRatio® test strips, a 102% increase from the fiscal 2006 third quarter, and $2.3 million in revenue for INRatio meters and accessories, a 99% increase over the fiscal 2006 third quarter.

 

   

HemoSense reported a gross profit of $4.2 million for the quarter, or 46% of total revenue, compared with a gross profit of $1.1 million, or 23% of total revenue, for the fiscal 2006 third quarter. The 297% improvement from the prior period was due primarily to increased unit production volumes and sales of test strips, as well as to continued process efficiencies.

 

   

Operating expenses for the quarter were $4.5 million, up 13% from $4.0 million for the fiscal 2006 third quarter.

 

   

The net loss for the fiscal 2007 third quarter decreased to $687,000, or $0.05 per share, from $3.1 million, or $0.27 per share, for the fiscal 2006 third quarter. Included in the net loss and the net loss per share for the third quarter of fiscal 2007 is a non-cash charge of $171,000, or approximately $0.01 per share, related to stock-based compensation expense pursuant to SFAS No. 123(R), compared with $81,000, or less than $0.01 per share, for the fiscal 2006 third quarter.


“We are pleased with the growth in our sales in the fiscal 2007 third quarter,” said Jim Merselis, President and CEO of HemoSense. “During the quarter, we gained access to certain LabCorp® laboratories to make our system available to LabCorp patient service centers and affiliated physicians. We believe this arrangement is a strong endorsement of our technology and an opportunity to support a recognized leader in healthcare.

“We continued to significantly improve our margins, and remain focused on gaining further economies of scale. In order to meet expected demand, we have begun our expansion into the building adjacent to our current facility, which is expected to effectively double our production and warehousing capacity,” he added. “We are also supportive of the recent request to Medicare by our industry coalition to expand its reimbursement coverage to include atrial fibrillation and deep vein thrombosis patients who are being treated with warfarin in addition to mechanical heart valve patients who are currently covered.”

HemoSense reported cash, cash equivalents and short-term investments of $16.2 million as of June 30, 2007.

This excerpt taken from the HEM 8-K filed Aug 7, 2007.

HemoSense Signs Definitive Agreement to be Acquired by Inverness

SAN JOSE, Calif. (August 7, 2007) – HemoSense, Inc. (AMEX: HEM) – a point of care diagnostic healthcare company that has developed, manufactures and sells easy-to-use, handheld blood coagulation monitoring systems for use by patients and healthcare professionals in the management of warfarin medication – today reported financial results for the three and nine months ended June 30, 2007. As announced yesterday, HemoSense and Inverness Medical Innovations (AMEX: IMA) have entered into a definitive agreement for Inverness to acquire HemoSense in an all stock transaction. Under terms of the agreement, each holder of a share of HemoSense common stock will receive 0.274192 shares of Inverness common stock, which represents a 37.5% premium based on the average trading prices of both companies over the five trading days prior to yesterday.

 

   

Total revenue for the fiscal 2007 third quarter was $9.2 million, an increase of 101% from total revenue of $4.6 million in the fiscal 2006 third quarter. Domestic revenue was $8.0 million and international revenue was $1.2 million, representing increases of 115% and 41%, respectively, compared with the same quarter in the prior year. Total revenue included $6.9 million in revenue for INRatio® test strips, a 102% increase from the fiscal 2006 third quarter, and $2.3 million in revenue for INRatio meters and accessories, a 99% increase over the fiscal 2006 third quarter.

 

   

HemoSense reported a gross profit of $4.2 million for the quarter, or 46% of total revenue, compared with a gross profit of $1.1 million, or 23% of total revenue, for the fiscal 2006 third quarter. The 297% improvement from the prior period was due primarily to increased unit production volumes and sales of test strips, as well as to continued process efficiencies.

 

   

Operating expenses for the quarter were $4.5 million, up 13% from $4.0 million for the fiscal 2006 third quarter.

 

   

The net loss for the fiscal 2007 third quarter decreased to $687,000, or $0.05 per share, from $3.1 million, or $0.27 per share, for the fiscal 2006 third quarter. Included in the net loss and the net loss per share for the third quarter of fiscal 2007 is a non-cash charge of $171,000, or approximately $0.01 per share, related to stock-based compensation expense pursuant to SFAS No. 123(R), compared with $81,000, or less than $0.01 per share, for the fiscal 2006 third quarter.


“We are pleased with the growth in our sales in the fiscal 2007 third quarter,” said Jim Merselis, President and CEO of HemoSense. “During the quarter, we gained access to certain LabCorp® laboratories to make our system available to LabCorp patient service centers and affiliated physicians. We believe this arrangement is a strong endorsement of our technology and an opportunity to support a recognized leader in healthcare.

“We continued to significantly improve our margins, and remain focused on gaining further economies of scale. In order to meet expected demand, we have begun our expansion into the building adjacent to our current facility, which is expected to effectively double our production and warehousing capacity,” he added. “We are also supportive of the recent request to Medicare by our industry coalition to expand its reimbursement coverage to include atrial fibrillation and deep vein thrombosis patients who are being treated with warfarin in addition to mechanical heart valve patients who are currently covered.”

HemoSense reported cash, cash equivalents and short-term investments of $16.2 million as of June 30, 2007.

EXCERPTS ON THIS PAGE:

DEFA14A
Aug 8, 2007
8-K
Aug 7, 2007
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