FARMINGDALE, N.Y., April 10 /PRNewswire-FirstCall/ -- Misonix, Inc. , a developer of ultrasonic medical device technology for the treatment of cancer and other health conditions, today announced that it has acquired a controlling interest in its UK distributor, UK-HIFU Limited, as a part of its strategic commitment to expand its high intensity focused ultrasound ("HIFU") operations in Europe. UK-HIFU Limited was founded in 2004 to bring the benefits of HIFU technology to cancer sufferers and their families in the United Kingdom (UK). Details of the transaction were not disclosed.
"Our strategy in Europe is intended to broaden the acceptance and use of HIFU-based medical devices made by Misonix," said Michael A. McManus, Jr., President and Chief Executive Officer of Misonix. "With UK-HIFU we will be able to participate more actively in the marketing of our products and have a greater share in the revenues generated by these activities. This transaction also provides a stronger distribution outlet for all our HIFU products in development. We believe our European HIFU expansion will deliver near and long term benefits to the medical community as well as to Misonix shareholders."
"We are excited about furthering our partnership with Misonix," said Nick Stevens, Managing Director of UK-HIFU. "Misonix and UK-HIFU share the same approach and vision to make HIFU technology a front line tool in the fight against cancer. We have had significant success in the first two years of working together, and look forward to what we will be able to accomplish together in the coming years."
The Sonablate(R) 500, which is manufactured by Misonix and distributed in the UK for Misonix by UK-HIFU, has been awarded a CE mark in Europe, and has been approved by the UK's National Institute for Clinical Excellence ("NICE"). NICE issued a full guidance report to the National Health Service (NHS) in England, Scotland and Wales on HIFU for prostate cancer treatment in mid-2005. UK-HIFU has been working with regulators to secure health insurance reimbursement for prostate cancer treatments using the Sonablate 500.
The UK Department of Health has released figures showing the number of patients diagnosed with prostate cancer has increased by 50% in the last 5 years and will reach an expected 40,000 per annum by the end of 2005. For many of these cases, treatment with HIFU offers a number of significant advantages over the traditional surgical and radiotherapy approaches.
UK-HIFU has been marketing the Sonablate 500 in the UK for Misonix for nearly two years. Initially marketed for outright purchase by users, the device is now also available on a fee-per-treatment basis. Misonix will now consolidate the revenue from unit sales as well as a portion of procedural fees. In the UK, there are currently 23 Sonablate 500 HIFU treatment centers in existence, 8 surgeons fully trained to use the device, 11 surgeons operating with the assistance of a supervising surgeon, and a further 8 surgeons in the early stages of training.
This latest action taken by Misonix to strengthen its presence in the European HIFU market comes days after the Company exhibited at the European Association of Urology Conference 2006 in Paris, France, the most influential European medical society with direct relevance to healthcare practitioners that are constantly seeking the latest technology for treating prostate conditions. At the conference, Misonix announced the result of a study on "Visually Directed HIFU" treatment of prostate cancer. Visually Directed HIFU is a new, non-invasive HIFU technique available only with the Sonablate 500.
Additional information on UK-HIFU may be found on the Internet at http://www.ukhifu.co.uk.
About Misonix:
Misonix develops, manufactures, and markets medical, scientific, and industrial ultrasonic and air pollution systems. Misonix's ultrasonic platform is the basis for several innovative medical technologies. Misonix has a minority equity position in Focus Surgery, Inc., a pioneer of high intensity focused ultrasound technology used to destroy deep-seated cancerous tissues without affecting surrounding healthy tissue. Addressing a combined market estimated to be in excess of $4 billion annually, Misonix's proprietary ultrasonic medical devices are used for wound debridement, cosmetic surgery, neurosurgery, laparoscopic surgery, and other surgical and medical applications. Additional information is available on the Company's Web site at http://www.misonix.com.
With the exception of historical information contained in this press release, content herein may contain "forward looking statements" that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. In particular, the Company may not be successful in its efforts with respect to strategic opportunities for its Laboratory and Scientific Division and the affect this activity may have on the other businesses within the Company. Investors are cautioned that forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the statements made. These factors include general economic conditions, delays and risks associated with the performance of contracts, uncertainties as a result of research and development, potential acquisitions, consumer and industry acceptance, litigation and/or court proceedings, including the timing and monetary requirements of such activities, regulatory risks including approval of pending and/or contemplated 510(k) filings, the ability to achieve and maintain profitability in the Company's business lines, and other factors discussed in the Company's Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
Misonix Contact: Richard Zaremba Chief Financial Officer 631-694-9555 invest@misonix.com Investor Relations Contact: Jordan M. Darrow Darrow Associates, Inc. 631-367-1866 jdarrow@optonline.net
Misonix, Inc.CONTACT: Richard Zaremba, Chief Financial Officer of Misonix, Inc.,+1-631-694-9555, or invest@misonix.com; or Investor Relations, Jordan M.Darrow of Darrow Associates, Inc. for Misonix, Inc., +1-631-367-1866, orjdarrow@optonline.net
