Haemonetics Provides Update on U.S. Whole Blood Supply Tender
Haemonetics currently supplies 1.8 million in-line whole blood collection kits toThe American Red Cross annually; approximately 0.4 million such kits includeHaemonetics' Acrodose platelet pooling product and were not included in the tender.- The remaining 1.4 million kits will begin to be sourced from a competitor commencing early in fiscal 2015. Annual revenues approximating
$25 million in fiscal 2014 will be impacted going forward. - The Company expects that, after appropriate variable cost reductions, earnings per share will be negatively impacted by approximately
$0.15 annually upon transition of this business to the competitor.
It is typical of supply agreements of this nature to include options for customers to change vendors should significant technological advances occur during the course of the agreement. It is
Mr. Concannon continued: "
Additionally, the Company noted that approximately 75% of the world's annual leukoreduced whole blood collections – the market
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Cautionary / Safe Harbor Language
This release contains forward-looking statements that involve risks and uncertainties, including the effects of disruption from our manufacturing transformation activities which may make it more difficult to maintain relationships with employees and timely deliver high quality products, unexpected expenses incurred during our Value Creation and Capture program, technological advances in the medical field and standards for transfusion medicine and our ability to successfully implement products that incorporate such advances and standards, demand for whole blood and blood components, product quality, market acceptance, regulatory uncertainties, the effect of economic and political conditions, the impact of competitive products and pricing, blood product reimbursement policies and practices, foreign currency exchange rates, changes in customers' ordering patterns including single-source tenders, the effect of industry consolidation as seen in the plasma and blood center markets, the effect of communicable diseases and the effect of uncertainties in markets outside the U.S. (including
Forward-looking statements are based on estimates and assumptions made by management of the Company and are believed to be reasonable, though inherently uncertain and difficult to predict. Actual results and experience could differ materially from the forward-looking statements. Information set forth in this press release is current as of today and the Company undertakes no duty or obligation to update this information.
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Tel. (781) 356-9402
gerry.gould@haemonetics.com
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