Healthcare Industry News: Synergetics USA
News Release - August 27, 2007
Synergetics USA, Inc. Announces an Extension to the Stryker Contract
O'FALLON, Mo.--(HSMN NewsFeed)--Synergetics USA, Inc. (NASDAQ: SURG ) announced today that it has extended the Stryker contract.On October 25, 2004, Synergetics USA, Inc.'s predecessor, Valley Forge Scientific executed a Supply and Distribution Agreement (the "Agreement") with Stryker, a Michigan corporation, which provides for the Company to supply to Stryker and for Stryker to distribute exclusively, on a world-wide basis, a unique radio frequency ("RF") generator for the percutaneous treatment of pain. The original agreement was for a term of five years commencing on November 11, 2004 and ending on December 31, 2009.
On August 1, 2007, the companies negotiated a one year extension to the contract date and an increased minimum purchase obligation per year for the remaining contract period. Net sales to Stryker amounted to approximately $2.0 million for the nine months ended April 30, 2007 which represents 6.0 percent of net sales for that time period.
"We are very pleased with the one year contract extension and we continue to work hand in hand with Stryker to develop additional features for the domestic pain control generator and on a generator for international distribution as well," said Gregg D. Scheller, President and Chief Executive Officer of Synergetics USA, Inc. "This is a prime example of how we want to explore opportunities for growth through strategic partnering with quality companies that have complimentary products and technologies."
About Synergetics USA, Inc.
Synergetics USA, Inc. resulted from the September 2005 combination of Valley Forge Scientific Corp. and Synergetics, Inc., bringing together their respective unique capabilities in bipolar electrosurgical generators and design, and manufacture of microsurgical hand instruments. Synergetics USA, Inc. designs, manufactures and markets medical devices for use primarily in ophthalmic surgery and neurosurgery and for other healthcare applications. Its products are designed and manufactured to support micro or minimally invasive surgical procedures. In addition to its surgical devices and equipment, it designs and manufactures disposable and non-disposable supplies and accessories for use with such devices and equipment. It also manufactures and sells bipolar electrosurgical generators and other generators, based on its DualWave(TM) technology, and complementary instrumentation and disposable products for use in neurosurgery, spine surgery, pain control and in dental applications. Synergetics sells its products primarily to hospitals, clinics and surgeons in approximately 70 countries.
Forward-Looking Statements
Some statements in this release may be "forward-looking statements" for the purposes of the Private Securities Litigation Reform Act of 1995. In some cases forward-looking statements can be identified by words such as "believe," "expect," "anticipate," "plan," "potential," "continue" or similar expressions. Such forward-looking statements include risks and uncertainties, and there are important facts that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These facts, risks and uncertainties are discussed in Synergetics' Annual Report on Form 10-K for the year ended July 31, 2006, as updated from time to time in our filings with the Securities and Exchange Commission.
Source: Synergetics USA
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