SUNRISE, Fla., Sept. 6 /PRNewswire-FirstCall/ -- NationsHealth, Inc. today announced that it has sold its respiratory division to Lincare Holdings Inc. for $16 million in cash. NationsHealth will transfer its respiratory patients and related inventory to Lincare.
NationsHealth's CEO, Glenn M. Parker, M.D. commented "This transaction allows us to raise capital to support the launch of our Part D business without diluting our existing shareholders. It will also enable us to immediately redirect a significant amount of our resources, including infrastructure, management focus and over 100 employees from the respiratory division to support the launch of our Medicare Part D business and other strategic initiatives."
As announced May 9, 2005, NationsHealth entered into an arrangement with CIGNA to launch a national Prescription Drug Plan under Medicare Part D. The proceeds from the sale of the respiratory division will satisfy NationsHealth's requirement to obtain additional funding under that CIGNA agreement and will be used for the significant infrastructure, personnel and marketing investments necessary to enroll and service beneficiaries.
About NationsHealth, Inc.
NationsHealth was founded in 2002 to improve the delivery of healthcare to Medicare and managed care beneficiaries by providing medical products and prescription discount services. The Company offers discount prescription cards, accepted at over 50,000 pharmacies nationwide. The Company currently has over 3 million cardholders. In addition, NationsHealth provides home delivery of diabetes and ostomy medical products to over 114,000 patients. NationsHealth is also the provider of diabetes supplies for Medicare beneficiaries at over 1,000 Kmart pharmacies. For more information please visit http://www.nationshealth.com.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, about NationsHealth, including statements regarding anticipated enrollment and private sector market opportunities in Medicare Part D and specialty pharmaceutical programs and the potential success of our strategic partnerships and joint ventures; none of which should be construed in any manner as a guarantee that such results will in fact occur. Forward-looking statements are statements that are not historical facts. Such forward-looking statements, based upon the current beliefs and expectations of NationsHealth's management, are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: the inability of our strategic partner to be awarded a Part D contract; our capacity to obtain funding to support the Part D strategic partnership; projections with respect to enrollment and market opportunities for Part D and specialty pharmacy programs; ability to maintain our existing customer base and our customers' desire to take advantage of our Part D and specialty pharmacy services; uncertainty in our costs incurred in administering the Part D program; changes in Medicare, Medicaid, Tricare, Champus and any other state or national-based reimbursement program; changing interpretations of generally accepted accounting principles; outcomes of government reviews of NationsHealth's business practices; inquiries and investigations and related litigation; continued compliance with government regulations; legislation or regulatory environments, requirements or changes adversely affecting the businesses in which NationsHealth is engaged; fluctuations in customer demand; management of rapid growth; intensity of competition from other providers of medical products and pharmacy benefits; timing and market acceptance of new products sold by NationsHealth; general economic conditions; and geopolitical events and regulatory changes. The information set forth herein should be read in light of such risks. NationsHealth cautions investors not to place undue reliance on the forward- looking statements contained herein. These statements speak only as of the date of this press release and NationsHealth assumes no obligation to update or revise the information contained herein.
NationsHealth, Inc.CONTACT: Glenn Parker, M.D., CEO, or Tim Fairbanks, CFO, both ofNationsHealth, +1-954-903-5000; or Melody A. Carey, Investors of RxCommunications Group, +1-917-322-2571, for NationsHealth, Inc.
Web site: http://www.nationshealth.com//