UNION CITY, Calif., Nov. 21, 2014 /PRNewswire/ -- Abaxis, Inc. (NasdaqGS: ABAX), a medical products company manufacturing point-of-care instruments and consumables for the medical, research, and veterinary markets worldwide and providing reference lab services to the veterinary and research markets in the United States, announced today the completion of a stock purchase agreement to acquire 100% of QCR & Trio Diagnostics Limited, a United Kingdom based distribution organization. The transaction closed on November 17, 2014.
Achim Henkel, Managing Director of Abaxis Europe GmbH, commented, "After a long and successful cooperation with QCR & Trio Diagnostics as our distribution partner in the United Kingdom and Ireland, we now take direct market responsibility by closing on this acquisition. We welcome the highly motivated and experienced QCR & Trio employees as new members of the Abaxis team and we look forward to a strengthened operational structure. We believe that in a complex market environment, this acquisition allows us to communicate the superior quality and performance of Abaxis' vet products to the full benefit of our existing and future customers."
Clint Severson, president and chief executive officer of Abaxis, Inc., commented, "We are pleased to have completed this acquisition. Over the years QCR & Trio Diagnostics has been a trusted partner and it made strategic sense to integrate them directly into the Abaxis team to drive even greater efficiencies in extending our brand into the veterinary market in Europe. Our goal is to build and strengthen our presence in additional geographic markets to expand the growth potential of Abaxis into the future. Investing more in Europe, and other international markets, will be a focus going forward."
Abaxis develops, manufactures, markets and sells portable blood analysis systems for use in any veterinary or human patient-care setting to provide clinicians with rapid blood constituent measurements. The system consists of a compact, 5.1 kilogram (11.2 pounds), portable analyzer and a series of single-use plastic discs, called reagent discs that contain all the chemicals required to perform a panel of up to 13 tests on veterinary patients and 14 tests on human patients. The system can be operated with minimal training and performs multiple routine tests on whole blood, serum or plasma samples. The system provides test results in less than 12 minutes with the precision and accuracy equivalent to a clinical laboratory analyzer. The veterinary business also provides to the animal health and research market a line of hematology instruments for point-of-care complete blood counts (CBC), a specialty instrument to screen for and detect clotting disorders and to measure equine fibrinogen levels, a handheld instrument for the rapid assessment of certain critical care tests and rapid point-of-care tests for Heartworm infections, Parvovirus, Giardia, Ehrlichia and Lyme disease. Abaxis, through its AVRL division, provides routine laboratory testing as well as specialty testing for veterinarians nationwide.
This press release includes statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"), including but not limited to statements related to Abaxis' cash position, financial resources and potential for future growth, market acceptance and penetration of new or planned product offerings, and future recurring revenues and results of operations. Abaxis claims the protection of the safe-harbor for forward-looking statements contained in the Reform Act. These forward-looking statements are often characterized by the terms "may," "believes," "projects," "expects," "anticipates," or words of similar import, and do not reflect historical facts. Specific forward-looking statements contained in this press release may be affected by risks and uncertainties, including, but not limited to, those related to risks related to the transition of its U.S. medical sales to Abbott, potential excess inventory levels and inventory imbalances at the company's distributors, losses or system failures with respect to Abaxis' facilities or manufacturing operations, fluctuations in quarterly operating results, dependence on sole suppliers, the market acceptance of Abaxis' products and services, the continuing development of its products, required United States Food and Drug Administration clearance and other government approvals, risks associated with manufacturing and distributing its products on a commercial scale free of defects, risks related to the introduction of new instruments manufactured by third parties, risks associated with competing in the human diagnostic market, risks related to the protection of Abaxis' intellectual property or claims of infringement of intellectual property asserted by third parties and risks related to condition of the United States economy. Readers should also refer to the section entitled "Risk Factors" in Abaxis' annual report on Form 10-K, recent quarterly reports on Form 10-Q and Abaxis' other periodic reports filed with the United States Securities and Exchange Commission. Forward-looking statements speak only as of the date the statements were made. Abaxis does not undertake and specifically disclaims any obligation to update any forward-looking statements.
Clint Severson Chief Executive Officer
Lytham Partners, LLC
Joe Dorame, Robert Blum and Joe Diaz