LAKE OSWEGO, Ore., Nov. 21 /PRNewswire-FirstCall/ -- Calypte Biomedical Corporation today announced that it has executed a definitive agreement with Maxim Biomedical, Inc. involving the sale of its legacy business. As a result of this transaction, Maxim has acquired Calypte's urine EIA, serum Western Blot and urine Western Blot HIV-1 in vitro diagnostic test business.
The sale of Calypte's legacy business is the final step in the restructuring plan approved by the Board of Directors in April 2005. The goal of the restructuring plan was to focus the Company's efforts on its rapid test and blood-based incidence test products by reducing the Company's labor force and overhead costs. As a result of this restructuring initiative Calypte and the completion of the sale to Maxim Biomedical, Calypte has been able to reduce its headcount by over 70%, from 63 personnel to fewer than 15. Largely as a result of these reductions in the Company's workforce the Company has reduced its operating expenses by approximately 50% from the 2004 burn rate of over $1 million per month and $12.8 million per year to approximately $6.5 million per year before new investments in China.
Mr. Roger I. Gale, Calypte's Chairman and CEO said, "The sale of the legacy business completes an important phase in the evolution of Calypte's business. We have made many hard decisions this year with the aim of making Calypte as efficient as possible as we prepare to launch our rapid test products on a worldwide basis. The completion of the asset sale to Maxim should allow the Company to focus its future on what we believe to be a unique opportunity in the rapid HIV diagnostic field. I hope to be able to update all stockholders in the near future and discuss further details of our progress and our near term and long term goals."
Forward-looking statements
The company cautions that its current expectations in this release concerning the benefits of the disposition of assets to Maxim Biomedical, Inc., including the company's plans, objectives, expectations and intentions are forward-looking statements, and actual results could differ materially from current expectations due to a number of factors, including: the company's ability to commercialize its rapid test products in international markets; the company's ability to obtain governmental approval for its products in the various jurisdictions in which it plans to commercialize its products; the company's ability to access the capital markets at attractive rates and terms to fund its operations and future growth; the success of the company's marketing efforts; and the company's ability to execute on its strategic and operating plans.
A discussion of these and other factors can be found in Calypte's annual report and other reports filed with the Securities and Exchange Commission, including, but not limited to, Calypte's report on Form 10-KSB/A (No.2) for the fiscal year ended December 31, 2004.
About Calypte Biomedical:
Calypte Biomedical Corporation is a US-based healthcare company focused on the development and commercialization of diagnostic testing products for the detection of sexually transmitted diseases. Calypte specializes in novel tests such as the HIV-1 BED Incidence EIA and is engaged in developing and commercializing new diagnostic test products for the rapid detection of HIV and other sexually transmitted diseases, several of which do not require blood samples. Calypte believes that there is a significant need for rapid detection of such diseases globally to control their proliferation, particularly in lesser-developed countries, which lack the medical infrastructure to support laboratory-based testing. Calypte believes that testing for HIV and other sexually transmitted infectious diseases may make important contributions to public health, and could increase the likelihood of treating those with undetected HIV and other sexually transmitted diseases.
Investor Relations Contact:
Tim Clemenson-212-843-9337
tclemensen@rubensteinir.com
Calypte Biomedical CorporationCONTACT: Investor Relations, Tim Clemenson +1-212-843-9337,tclemensen@rubensteinir.com, for Calypte Biomedical Corporation
Web site: http://www.calypte.com/
