Hydromer,
Inc. sells Medical OEM Business to Forefront
Medical
(November 30, 2009)
Branchburg, NJ. USA; November 30, 2009, --- Hydromer, Inc.
(HYDI.OB – OTC BB) announces the sale of its Private Label Jejunostomy
Catheter and Nasogastric Feeding Catheter business to Forefront Medical
Technologies. Forefront Medical Technologies is a wholly owned
subsidiary of Vicplas International Limited a company registered in the
Republic of Singapore.
Under the terms of this agreement Forefront Medical Technologies
(Forefront) will pay US$800,000 in cash to Hydromer, Inc’s wholly owned
subsidiary Biosearch Medical Products, Inc. (Biosearch). $400,000 was
payable upon the effective date and the second $400,000 is held in
escrow until the transition is complete. The agreement also
calls for Biosearch to assign certain customer supply agreements to
Forefront and for a 3 year non-compete provision. Biosearch will
continue to manufacture these products during the transition at an
agreed upon transfer price.
In addition, a separate supply agreement has been entered between the
two parties for the Hydromer® hydrophilic coating solution used on
those products.
“This transaction was essential for our strategic realignment allowing
us to reclaim valuable medical clean room space for our higher margin
core business of medical coating services.” commented Martin von Dyck,
President of Biosearch and Executive Vice President of Hydromer, Inc.,
adding, “In addition to providing us with an enhanced ability to focus
on the medical coatings business and bolstering our balance sheet, we
are now in a much stronger position to self finance our continued
R&D and marketing efforts in our diversified product portfolio of
T-Hexx® animal hygiene, Cosmetics and Industrial coating
technologies.”
Hydromer, Inc. is a technology-based company involved in the research
and development, manufacture and commercialization of specialized
polymer and hydrogel products for medical device, pharmaceutical,
animal health, cosmetic, personal care, and industrial uses. For the
latest information about Hydromer, Inc. and its products, please visit
our web site at http://www.hydromer.com .
For additional information please contact: Martin von Dyck,
908-722-5000, Executive Vice President.