Cepheid Appoints LABSCO as US Small Hospital Distributor
SUNNYVALE, Calif., May 18, 2011 /PRNewswire/ — Cepheid (NASDAQ: CPHD) today announced it has entered into an agreement with LABSCO (www.labsco.com), the largest privately held distributor of clinical products in the United States, to become its US distribution partner for Cepheid’s GeneXpertÃ‚® Systems and tests. The agreement grants LABSCO exclusive US distribution rights to the acute care hospital market for institutions with less than 150 beds. The agreement does not presently include the higher throughput GeneXpert Infinity System.
“There are more than 3900 US hospitals with less than 150 beds which have not been a primary focus of Cepheid to date. The decision to engage on a nationwide basis with LABSCO is in line with one of our strategic growth objectives directed at expanding our reach within the US market,” said Nico Arnold, Cepheid’s Executive Vice President of Worldwide Operations. “We will continue to focus our direct sales efforts on the approximately 2100 hospitals that have 150 beds and above. Based on our positive experience to date with LABSCO and in reviewing their strong resource commitment to Cepheid we are excited to be moving to national implementation of our distribution relationship. We feel strongly that our shared passion for revolutionizing molecular diagnostics through a customer-first approach will make for an ideal partnership.”
In addition to the exclusive distribution rights, the agreement also gives LABSCO non-exclusive rights to the non-acute care non-hospital market, including surgical centers affiliated with hospitals, independent surgical centers, physician’s office laboratories, group practices, and nursing homes.
“Cepheid is the highest growth company in molecular diagnostics. The GeneXpert System is generations ahead of anything else we have seen on the market,” said Dan Eckert, LABSCO’s President and Chief Operating Officer. “This is a great opportunity to partner with Cepheid to transform diagnostic healthcare, and LABSCO has the clinically trained sales force, market focus and service capabilities to help make that happen.”
Based in Sunnyvale, Calif., Cepheid (Nasdaq: CPHD) is a leading molecular diagnostics company that is dedicated to improving healthcare by developing, manufacturing, and marketing accurate yet easy-to-use molecular systems and tests. By automating highly complex and time-consuming manual procedures, the company’s solutions deliver a better way for institutions of any size to perform sophisticated genetic testing for organisms and genetic-based diseases. Through its strong molecular biology capabilities, the company is focusing on those applications where accurate, rapid, and actionable test results are needed most, such as managing infectious diseases and cancer. For more information, visit http://www.cepheid.com.
About the GeneXpertÃ‚® System Molecular Diagnostic Platform
The GeneXpert System is a closed, self-contained, fully-integrated and automated platform that represents a paradigm shift in the automation of molecular analysis, producing accurate results in a timely manner with minimal risk of contamination. The GeneXpert System is the only system to combine on-board sample preparation with real-time PCR (polymerase chain reaction) amplification and detection functions for fully integrated and automated nucleic acid analysis. The system is designed to purify, concentrate, detect and identify targeted nucleic acid sequences, delivering answers directly from unprocessed samples. Modular in design, the GeneXpert System has a variety of configurations to meet the broad range of testing demands of any clinical environment.
This press release contains forward-looking statements that are not purely historical regarding Cepheid’s or its management’s intentions, beliefs, expectations and strategies for the future, including those relating to product performance and future market opportunities. Because such statements deal with future events, they are subject to various risks and uncertainties, and actual results could differ materially from the company’s current expectations. Factors that could cause actual results to differ materially include risks and uncertainties such as those relating to: unforeseen manufacturing problems; uncertainties in the regulatory review process for new products; regulatory developments and practices regarding testing levels; customer and market acceptance of the product; the failure of products to perform as fast or as accurately as expected, whether due to manufacturing errors, defects or otherwise; the impact of competitive products and pricing; potentially lengthy sales cycles in some markets; reimbursement rates for the products; and underlying market conditions worldwide. Readers should also refer to the section entitled “Risk Factors” in Cepheid’s Annual Report on Form 10-K for 2010 and in its most recent quarterly report on Form 10-Q, each filed with the Securities and Exchange Commission.
All forward-looking statements and reasons why results might differ included in this release are made as of the date of this press release, based on information currently available to Cepheid, and Cepheid assumes no obligation to update any such forward-looking statement or reasons why results might differ.
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