LITTLETON, Colo.--(BUSINESS WIRE)--Zynex, Inc., a provider of pain management systems and electrotherapy products for medical patients with functional disability, announces plans to form two new business units: Zynex Monitoring Solutions and Zynex NeuroDiagnostic. The two proposed new subsidiaries will leverage the proprietary core technology in Zynex’ existing product portfolio to create, develop and market new products for hospitals and clinics. Zynex Monitoring Solutions and Zynex NeuroDiagnostic are intended to be part of a long-term path of continued growth both domestically and internationally while Zynex Medical, with its electrotherapy products for home-use, continues to serve an increasing number of patients in the rehabilitation, pain management and recovery markets.
Thomas Sandgaard, CEO of Zynex comments: “We intend to create two new subsidiaries to augment our high-growth and profitable electrotherapy business. We believe that developing devices for monitoring in the cardiovascular area and devices for diagnosing neurological issues will be complementary to our existing electrotherapy business. These anticipated cardiovascular monitoring and neurological diagnosis products are under development. In addition to facilitating the development of new medical devices, Zynex intends to use the new subsidiaries as a platform for potential strategic acquisitions of businesses involved in the cardiovascular monitoring and neurological diagnosis industries.
“The recent move to our expanded headquarters and distribution center as well as our strong cash flow for the year ended December 31, 2009 has allowed Zynex to pursue these potential opportunities to continue to grow the business and benefit our shareholders. As mentioned previously, we are in the process of significantly increasing our number of experienced sales representatives and expect significant growth in 2010 revenues with our existing electrotherapy business.”
Zynex, Inc. (founded in 1996) engineers, manufactures, markets and sells its own design of electrotherapy medical devices in two distinct markets: standard digital electrotherapy products for pain relief and pain management; and the NeuroMove(TM) for stroke and spinal cord injury (SCI) rehabilitation. Zynex's product lines are fully developed, FDA-cleared, commercially sold, an have been developed to uphold the Company's mission of improving the quality of life for patients suffering from impaired mobility due to stroke, spinal cord injury, or debilitating and chronic pain.
Safe Harbor Statement
Certain statements in this release are "forward-looking" and as such are subject to numerous risks and uncertainties. Actual results may vary significantly from the results expressed or implied in such statements. Factors that could cause actual results to materially differ from forward-looking statements include, but are not limited to, the need to obtain additional capital in order to grow our business, the need to obtain FDA clearance and CE marking of new products, the acceptance of new products as well as existing products by, doctors and hospitals, larger competitors with greater financial resources, the need to keep pace with technological changes, our dependence on the reimbursement from insurance companies for products sold or rented to our customers, acceptance of our products by health insurance providers, our dependence on third party manufacturers to produce our goods on time and to our specifications, implementation of our sales strategy including a strong direct sales force, the uncertain outcome of pending material litigation and other risks described in our 10-K Report for the year ended December 31, 2008.
Thomas Sandgaard, CEO.