Healthcare Industry News: Peripherally Inserted Central Catheter
News Release - March 1, 2006
Bard Signs Agreement to Acquire Venetec International, Inc.MURRAY HILL, N.J.--(HSMN NewsFeed)--March 1, 2006--C. R. Bard, Inc. (NYSE:BCR ) today announced that it has signed an agreement to acquire Venetec International, Inc., for a purchase price of approximately $166 million in cash. Venetec, located in San Diego, California, markets the StatLock® line of catheter securement systems. Bard's Medical division, located in Covington, Georgia, will assume marketing responsibility for the line. The company expects to complete the transaction following the satisfaction of customary conditions, including Hart-Scott-Rodino clearance.
Catheter securement devices are used primarily in acute care facilities to reduce restarts and complications associated with peripheral intravenous (IV) catheters. They are similarly used in conjunction with central venous and Peripherally Inserted Central Catheters (PICCs), Foley and dialysis catheters, nasogastric (NG) tubes and other catheter-based devices. Today, the U.S. market for catheter securement products is dominated by tape and transparent dressings and is estimated at approximately $300 million with double-digit growth anticipated over the next decade. The proprietary StatLock product line offers clinicians a simple, safe and cost effective alternative to address problems associated with catheter placement and care.
Timothy M. Ring, chairman and CEO, commented, "The StatLock catheter securement devices and associated technology fit very well strategically with several of our market leading product lines. StatLock devices have strong brand recognition and come with an extensive intellectual property portfolio that includes 245 patents and patent applications. Additionally, the product line is supported by multiple clinical and economic outcomes studies. We look forward to the Venetec organization becoming part of Bard and to the contribution their product line will make to our long-term growth strategy."
Based on expected completion of the transaction in the second quarter, the company is raising its full-year 2006 constant currency revenue growth guidance by one percentage point to a range of 10 to 11 percent. Full-year 2006 diluted earnings per share growth guidance of a minimum of 14 percent, excluding items that impact the comparability of results between periods and the impact of FAS123R, remains unchanged.
C. R. Bard, Inc. (www.crbard.com), headquartered in Murray Hill, N.J., is a leading multinational developer, manufacturer and marketer of innovative, life-enhancing medical technologies in the fields of vascular, urology, oncology and surgical specialty products.
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on management's current expectations, the accuracy of which is necessarily subject to risks and uncertainties. These statements are not historical in nature and use words such as "anticipate", "estimate", "expect", "project", "intend", "forecast", "plan", "believe", and other words of similar meaning in connection with any discussion of future operating or financial performance. Many factors may cause actual results to differ materially from anticipated results including product developments, sales efforts, income tax matters, the outcomes of contingencies such as legal proceedings, and other economic, business, competitive and regulatory factors. The company undertakes no obligation to update its forward-looking statements. Please refer to our December 31, 2005 10-K for more detailed information about these and other factors that may cause actual results to differ materially from those expressed or implied.
Net sales, excluding foreign exchange, and net income and diluted earnings per share (EPS) excluding certain items are non-GAAP financial measures. The company analyzes net sales on a constant currency basis to better measure the comparability of results between periods. Because changes in foreign currency exchange rates have a non-operating impact on net sales, the company believes that evaluating growth in net sales on a constant currency basis provides an additional and meaningful assessment of net sales. Net income and EPS excluding certain items are used by the company to measure the comparability of results between periods. Certain items such as investment gains and litigation outcomes may not reflect underlying operating results, and other items such as the FAS123R stock option expense may affect the comparability of results between periods. As a result, the company believes the exclusion of these and similar items provides an additional and meaningful assessment of net income and EPS. The limitation of these non-GAAP measures is that, by excluding certain items, they do not reflect results on a standardized reporting basis. All non-GAAP financial measures are intended to supplement the applicable GAAP disclosures and should not be viewed as a replacement for GAAP results. For a reconciliation of these non-GAAP measures to the most comparable GAAP measures, please see the investor relations section of the company's web site, www.crbard.com.
Source: C. R. Bard
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