NORTH ANDOVER, Mass., Oct. 22 /PRNewswire-FirstCall/ -- Andover Medical, Inc. , a single source provider of orthopedic, podiatric and urological durable medical equipment (“DME”) and incontinence treatment solutions announced today that its CEO has issued a performance update to its shareholders:
To Our Shareholders:
Over the past twelve months, Andover Medical has begun successfully building its national subsidiary network of DME providers. Following the equity raise of over seven million dollars and an additional line of credit from TD Banknorth for up to five million dollars, Andover is well-positioned to move forward with its multi-faceted acquisition and growth strategies.
The Andover management team is pleased with the company’s first two acquisitions, Ortho-Medical Products, Inc. and Rainier Surgical, Incorporated, companies which will act as the platform from which the larger, unified network will grow. Through careful due diligence and analysis of the financials and organizational structure of its targeted acquisitions, Andover seeks to ensure that the most promising and regionally successful private DME distributors form the company’s foundation. From this solid foundation, Andover drives to develop a nationally recognized DME brand providing practitioners and patients in the orthopedic and podiatric markets with the largest selection of the most competitively priced, high quality DME available.
Andover is committed to its strategy of targeting and acquiring the most effective DME providers for its unified network. Andover’s management team is looking forward to the Company’s continued growth and development of a national brand.
Industry Snapshot:
Orthopedics is one of the fastest growing segments in healthcare products and services. The “graying” of the population and the increase in the active physical lifestyle of seniors, among other factors, play key roles in this growth. DME products specific to these three areas are most significantly used by aging baby boomers and seniors age 65 and over. This senior demographic, which is expanding rapidly both in size and in its need for services, has been increasing from approximately 35 million people in 2000, to an estimated 40.2 million by 2010, and eventually to an estimated 71 million people by 2030, representing approximately 20 percent of the U.S. population.
As the aging/active population lives longer, they require a greater number of prescribed DME devices for treating injuries, chronic medical conditions, and orthopedic surgeries. These factors account for the anticipated growth in the size of the patient market for DME products and the need for their increased frequency of prescription of them. Andover aims to satisfy this increased demand for DME in a highly fragmented marketplace, and is optimistic that the Company’s strategy will prove successful as greater purchasing and distribution efficiencies will provide attractive solutions to physicians and patients.
For a detailed description of Andover’s business strategy, featured DME and additional information on the orthopedic, urological, and podiatric market opportunities, please visit the Company’s website at www.andovermedical.com.
Outlook:
Andover’s annualized revenues, based on the acquisitions of Ortho-Medical, Inc. and Rainier Surgical Incorporated., are approximately $8.6M, and steady growth is anticipated over the next twelve to sixteen months as Andover continues to research currently targeted acquisitions and increase the pipeline of potential acquisition opportunities.
To date, Andover has targeted a number of private orthopedic DME distributors nationally. The initial focus remains on “platform” companies with revenues of between $3M and $7M. The secondary focus will be on smaller companies that will strengthen the regional presence of the Company’s initial acquisitions. Andover is optimistic about its growth potential, and is seeking to double its revenue by the end of 2008, as the currently targeted acquisitions are completed and pricing efficiencies in the marketplace are recognized and increased.
We thank you for your support and encourage your continued interest in Andover Medical, Inc. If you have additional questions or comments, please contact our investor relations firm, Equity Performance Group, at 617-242-1025 or by email at gary@equityperfgp.com.
About Andover Medical Inc.:
Andover Medical, Inc. (AMI) is building a single source provider of orthopedic, podiatric and urological durable medical equipment (“DME”) and incontinence treatment solutions. The Company intends to establish a nationwide subsidiary network and plans to offer physicians the largest selection of competitively priced brand-name durable medical equipment, and urodynamic diagnostic and treatment products. For more information, please call (978) 557-1001 or visit http://www.andovermedical.com and http://www.equityperformancegroup.com/clients_adov.php.
Forward-Looking Statements:
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts included in this press release are forward-looking statements. These forward looking statements include: Andover’s intent to establish a nationwide subsidiary network and plans to offer physicians the largest selection of competitively priced brand-name products; and Andover is well-positioned to move forward with its multi-faceted acquisition and growth strategies; the Company’s continued growth and development of a national brand; the Company’s strategy will prove successful as greater purchasing and distribution efficiencies will provide attractive solutions to physicians and patients; and all pro forma financial information and other statements made under “Outlook.” All forward-looking statements speak only as of the date of this press release. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, achievements or transactions of AMI and its affiliates to be materially different from any future results, performance, achievements or transactions expressed or implied by such forward-looking statements. Such risks, uncertainties and other factors which, could impact the Company and the forward-looking statements contained herein are included in the Company’s filings with the Securities and Exchange Commission. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
ereilly@andovermedical.comgary@equityperfgp.comwww.equityperformancegroup.com
CONTACT: Edwin Reilly, Andover Medical, Inc., ereilly@andovermedical.com;
Investor Relations, Gary Geraci, Equity Performance Group, +1-617-242-1025,
gary@equityperfgp.com
Web site: http://www.andovermedical.com/
