Nova Biomedical's subsidiary Sanvita CBGM to acquire assets of CCS Medical's subsidiary, Sanvita Inc

Sep 11 2009

Nova Biomedical Corporation, a leading developer of whole blood analyzers, and CCS Medical, Inc. a leading direct-to-consumer provider of medical supplies, today announced that they have reached a definitive agreement under which Nova Biomedical's independent, wholly owned subsidiary, Sanvita CBGM, LLC, will acquire certain assets of Sanvita, Inc., a wholly-owned subsidiary of CCS Medical. Sanvita, Inc. is currently the exclusive distributor of Nova's "NovaMax" consumer blood glucose product line in the United States. The NovaMax blood glucose monitor has the fastest test time and absolutely no coding.

"Nova Biomedical and Sanvita have had a mutually beneficial business relationship for more than two years," said Francis C. Manganaro, President and Chief Executive Officer of Nova Biomedical. "While our existing business model has served us well to date, we believe that now is the right time for our CBGM subsidiary to assume full control of the distribution of our consumer glucose brand, NovaMax. This will allow Nova to be closer to its customers, to develop innovative NovaMax products, and to bring new NovaMax products to market faster. Together with the recent success of Nova Biomedical's hospital glucose monitor business, StatStrip, the acquisition of assets of Sanvita by the CBGM subsidiary will position Nova Biomedical to further improve its overall glucose monitoring business.

John Miclot, Chief Executive Officer of CCS Medical, said, "Today's announcement is a validation of the hard work and commitment of Sanvita, Inc.'s talented work force and to the value they provide every day to customers and patients. We intend to work closely with Sanvita CBGM, LLC to continue to maintain the high level of patient and customer support and satisfaction."

The acquisition is subject to customary approvals and approval by the United States Bankruptcy Court for the District of Delaware, which is overseeing CCS Medical's Chapter 11 case. The parties expect the transaction to close in early October.

Source: http://www.ccsmed.com