Nov 2 2015
CAS Medical Systems, Inc. (CASMED), a leader in medical devices for non-invasive patient monitoring, announces the sale of assets related to its 740 SELECT® vital signs monitoring product line to Zoe Medical, Inc. The sale of the 740 SELECT product line coupled with the phase-out of earlier generation monitors completes the Company's exit from the vital signs monitoring market.
"Divesting these non-strategic assets allows for added focus on our core business of FORE-SIGHT® cerebral oximeters and sensors," said Thomas M. Patton, President and Chief Executive Officer of CASMED. "We have made substantial progress in our transition to a single-use disposables business model as FORE-SIGHT sensors sales have represented an increasingly large percentage of total sales. We have recorded 21 consecutive quarters of double-digit sensor sales growth in the U.S. and recently launched our FORE-SIGHT ELITE® products for use with pediatric and neonatal patients. Our FORE-SIGHT business continues to track well against our expectations that the second half of 2015 will be stronger than the first half."
Zoe Medical will take assignment of CASMED's vital signs monitor distribution organization after a transition period. Therefore, all customer relationships will be maintained without interruption. CASMED will continue to provide service for its legacy 740 brand monitors.
"The addition of the 740 SELECT product line to our organization represents a great opportunity to bring the technology to new markets," commented Dr. Bengt Hermanrud, Zoe Medical's CEO. "As both a developer and supplier of the SELECT, our familiarity with the product will allow us to quickly create exciting new clinical solutions for our customers."
With the divestiture of the 740 SELECT product line, CASMED has reclassified its entire vital signs monitoring results to discontinued operations. Sales of vital signs monitors were $3.7 million in 2014 and $1.3 million for the six months ended June 30, 2015. Reclassifying the vital signs monitoring to discontinued operations for both periods had no material effect on the Company's results from continuing operations.
Source: http://www.casmed.com/