Atrium Innovations Announces Distribution Joint Venture in China in Partnership with Fosun Pharma
QUEBEC CITY, Feb. 27, 2013 /PRNewswire/ - Atrium Innovations Inc. (TSX: ATB), a globally recognized leader in the development, manufacturing and commercialization of innovative, science-based dietary supplements endorsed by health professionals, today announces that it has entered into a joint venture contract with Fosun Industrial, incorporated in Hong Kong, wholly owned of Shanghai-based Fosun Pharma for the purposes of distributing Atrium brands in China. According to IMS Health Incorporated, Fosun Pharma is one of the top five domestic pharmaceutical companies in the People's Republic of China ("PRC"), by revenue, in the pharmaceutical manufacturing segment. The new joint venture will operate under the FOSIUM Innovations name.
FOSIUM Innovations will initially import, market and sell Pure Encapsulations® products in the Chinese mainland market. The products will continue to be manufactured in the United States. Other existing Atrium brands will subsequently be introduced. Atrium will make an initial investment in the joint venture of $1 million, for a participation of 49%.
"China has been a market of interest for Atrium for several years. We have considered many entry scenarios in light of the complexity associated with product registration and the particularity of distribution channels. Our joint venture with Fosun Pharma will provide needed local expertise and access to a wide range of distribution channels. Although we expect some revenues in 2013, our investment in this new market should be viewed as a long-term commitment where we believe we can distribute other brands of our portfolio," said Pierre Fitzgibbon, President and CEO of Atrium Innovations.
About Atrium Innovations
Atrium Innovations Inc. is a globally recognized leader in the development, manufacturing and commercialization of innovative, science-based dietary supplements endorsed by health professionals. The Company distributes its extensive portfolio of products mainly in the healthcare practitioner and health food and specialized store channels, with a primary focus in North America and Europe. Atrium is at the forefront of science, innovation and education in the dietary supplement industry. The Company has over 1,100 employees and operates seven manufacturing facilities. Additional information is available at www.atrium-innovations.com.
About Fosun Pharmaceutical
Shanghai Fosun Pharmaceutical (Group) Co., Ltd. ("Fosun Pharma", Shanghai Stock Exchange: 600196; Hong Kong Stock Exchange: 2196), was established in 1994 and listed on the Shanghai Stock Exchange in August 1998 and on the Hong Kong Stock Exchange in October 2012. It is a leading healthcare company in the PRC with business operations strategically covering multiple important segments of the healthcare industry value chain, including pharmaceutical manufacturing, distribution and retail, healthcare services and diagnostics products and medical devices. For more information, please visit www.fosunpharma.com
Caution Regarding Non-IFRS Financial Measures
The Company provides non-IFRS financial measures (Gross profit*, EBIT*, EBITDA*, and Adjusted EPS*) as supplemental information regarding its operational performance. These non-IFRS financial measures are directly derived from the Company's financial statements and are presented in a consistent manner. The Company uses these measures for the purposes of evaluating its historical and prospective financial performance, as well as its performance relative to competitors. These measures also help the Company to plan and forecast for future periods as well as to make operational and strategic decisions. The Company believes that providing this information to investors, in addition to IFRS measures, allows them to see the Company's results through the eyes of management, and to better understand its historical and future financial performance.
The presentation of this additional information is not prepared in accordance with IFRS. Therefore, the information may not necessarily be comparable to that of other companies and should be considered as a supplement to, not a substitute for, or superior to, the comparable measures calculated in accordance with IFRS.
*Gross profit means revenue less cost of sales. EBIT means earnings before interest and tax. EBITDA means earnings before interest, tax, depreciation, amortization, restructuring and acquisition costs. Adjusted EPS means EPS without giving the dilutive effect of the convertible debentures.
Cautionary Note and Forward-Looking Statements
This press release contains certain forward-looking statements with respect to the Company. These forward-looking statements, by their nature, require the Company to make certain assumptions and necessarily involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these forward-looking statements. Forward-looking statements are not guarantees of performance. These forward-looking statements, including financial outlooks, may involve, but are not limited to, comments with respect to the Company's business or financial objectives, its strategies or future actions, its targets, expectations for financial condition or outlook for operations and future contingent payments. Words such as "may", "will", "would", "could", "expect", believe", "plan", "anticipate", "intend", "estimate", "continue", or the negative or comparable terminology, as well as terms usually used in the future and the conditional, are intended to identify forward-looking statements. Information contained in forward-looking statements is based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including management's perceptions of historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances. The Company considers theses assumptions to be reasonable based on information currently available to it, but cautions the reader that these assumptions regarding future events, many of which are beyond its control, may ultimately prove to be incorrect since they are subject to risks and uncertainties that affect the Company and its business.
For additional information with respect to these and other factors and assumptions underlying the forward-looking statements made in this press release, see the Company's quarterly and annual Management Discussion and Analysis filed with the Canadian securities commissions. The forward-looking information set forth herein reflects the Company's expectations as at the date of this press release and is subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by law.
SOURCE ATRIUM INNOVATIONS INC.
Image with caption: "February 19, 2013. Shanghai, People's Republic of China. Sirs Yao Fang, Executive Director, Vice Chairman and General Manager of Shanghai Fosun Pharmaceutical (Group)., Ltd. and Pierre Fitzgibbon, President and Chief Executive Officer of Atrium Innovations Inc. (CNW Group/ATRIUM INNOVATIONS INC.)". Image available at: http://photos.newswire.ca/images/download/20130227_C8649_PHOTO_EN_24108.jpg