UNION CITY, Calif., Jan. 25, 2011 /PRNewswire/ -- Abaxis, Inc. (Nasdaq:ABAX - News), a medical products company manufacturing point-of-care blood analysis systems, announced today the Company has signed a new 10-year supplier contract with BD (Becton, Dickinson and Company) for products using the Abaxis’ patented Orbos Discrete Lyophilization Process (the “Orbos Process”). The new 10-year agreement takes effect immediately and replaces the expiring 5-year agreement. Based upon current demand, the new 10-year contract has an approximate value of $30 million over the life of the contract.
The dry reagents manufactured by Abaxis are produced using the Company’s proprietary technology - the Orbos ® Discrete Lyophilization Process. One aspect of this process allows the production of a precise amount of active chemical ingredient in the form of a soluble bead. This aspect of the Orbos process has broad applications in products where delivery of active ingredients in a stable, pre-metered format is desired.
Clint Severson, chairman and chief executive officer of Abaxis, commented, “We are pleased to extend our supplier partnership with BD. BD is one of the leading medical technology companies in the world and we are pleased to be one of the suppliers of the reagents that make their technology so efficient, accurate, and widely implemented. We appreciate the confidence that BD has invested in Abaxis by virtue of the 10 year term of this agreement. We look forward to working closely with BD in the coming years.”
Additionally, BD recently notified Abaxis that it is awarding Abaxis its “2010 Reagents Supplier of the Year Award” – Silver category - at its annual Procurement Global Meeting. Abaxis has been a supplier to BD since 1994.
“We are gratified to be recognized by BD in this manner,” said Donald Wood, chief operations officer of Abaxis. “This award is a testament to the innovation, the creativity and the day-to-day execution of the entire Abaxis team. We are dedicated to providing our customers with the best available technology and the most efficacious products that meet their ongoing and evolving customer needs. This is an important validation of our core operating principals.”
About Abaxis
Abaxis develops, manufactures and markets portable blood analysis systems for use in any veterinary or human patient-care setting to provide clinicians with rapid blood constituent measurements. The system consists of a compact, 5.1 kilogram (11.2 pounds), portable analyzer and a series of single-use plastic discs, called reagent discs that contain all the chemicals required to perform a panel of up to 13 tests on veterinary patients and 14 tests on human patients. The system can be operated with minimal training and performs multiple routine tests on whole blood, serum or plasma samples. The system provides test results in less than 12 minutes with the precision and accuracy equivalent to a clinical laboratory analyzer.
Private Securities Litigation Reform Act of 1995
This press release includes, statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Reform Act”), including but not limited to statements related to Abaxis’ cash position, financial resources and potential for future growth, market acceptance of new or planned product offerings, process improvements and product manufacturing quality and efficiencies in future production of our products. Abaxis claims the protection of the safe-harbor for forward-looking statements contained in the Reform Act. These forward-looking statements are often characterized by the terms “may,” “believes,” “projects,” “expects,” “anticipates,” or words of similar import, and do not reflect historical facts. Specific forward-looking statements contained in this press release or in Abaxis’ conference call may be affected by risks and uncertainties, including, but not limited to, those related to the market acceptance of the company’s products and the continuing development of its products, required United States Food and Drug Administration clearance and other government approvals, risks associated with manufacturing and distributing its products on a commercial scale free of defects, risks related to the introduction of new instruments manufactured by third parties, risks associated with entering the human diagnostic market on a larger scale, risks related to the protection of the company’s intellectual property or claims of infringement of intellectual property asserted by third parties, risks related to condition of the United States economy, risks involved in carrying of inventory and other risks detailed under “Risk Factors” in Abaxis’ Annual Report on Form 10-K for the fiscal year ended March 31, 2010 and Abaxis’ other periodic reports filed from time to time with the United States Securities and Exchange Commission. Forward-looking statements speak only as of the date the statements were made. Abaxis does not undertake and specifically disclaims any obligation to update any forward-looking statements.
Contact:
Clint Severson Lytham Partners, LLC Chief Executive Officer Joe Dorame, Joe Diaz & Robert Blum
ABAXIS, Inc. 602-889-9700 510-675-6500
