Misonix Terminates Distribution Agreement With Aesculap
FARMINGDALE, N.Y., Dec. 12, 2012 /PRNewswire/ -- Misonix, Inc. (NasdaqGM: MSON), an international surgical device company that designs, manufactures and markets innovative therapeutic ultrasonic products for spine surgery, skull-based surgery, neurosurgery, wound debridement, cosmetic surgery, laparoscopic surgery and other surgical applications, has announced the termination of its distribution agreement with Aesculap, Inc., for the Misonix BoneScalpel™ Ultrasonic Bone Cutting System.
Since January 2011, Aesculap has been a non-exclusive, private label distributor of the BoneScalpel in the United States, for clinical applications in spine surgery and cranial surgery. Under the non-exclusive distribution agreement, Aesculap retains the right to sell BoneScalpel disposables to certain, limited hospital accounts, post termination, which are covered by binding supply agreements for varying periods of time, but not to exceed 3 years. An additional aspect of the cancellation requires Misonix to purchase all hardware inventory in Aesculap's possession. This inventory will feature prominently in the Company's plans to support its rapidly growing, proprietary sales organization with equipment for sales, demonstration and evaluation purposes.
Consistent with its business strategy, Misonix is committed to creating brand equity by selling its products under its own label via its own proprietary sales organization. Misonix, to date, has appointed and trained upwards of 40 independent sales agencies, with more than 200 salespeople, to market its BoneScalpel product line to neurosurgeons, spine surgeons, orthopedic surgeons and cranio maxillo-facial surgeons, backed by its own sales & marketing management team.
The BoneScalpel is a novel ultrasonic osteotome used for safe, tissue-selective bone dissection that encourages en-bloc bone removal and refined osteotomies while sparing elastic soft tissue structures. Most users report that the surgical field is relatively bloodless and clean. Loss of viable bone is minimal and controllable. The BoneScalpel has been used extensively for bone removal in the cervical, thoracic and lumbar spine, including deformity surgery, as well as a variety of 'skull based' surgical procedures.
"We are grateful to Aesculap for their contributions, to date, to our sales success in the USA," said Michael A. McManus, Jr., President and Chief Executive Officer of Misonix. "We look forward to maintaining the fine relationship established between our companies as we move through a transition period toward direct control of our destiny via our own direct distribution channel. This decision by Misonix is a continuation of our strategy to be focused on our own unique products, to determine and manage our own strategic direction, to completely guide new product line extensions and to ensure complete dedication to the skills development of our BoneScalpel surgeons."
Misonix, Inc. designs, develops, manufactures and markets therapeutic ultrasonic medical devices. Misonix's therapeutic ultrasonic platform is the basis for several innovative medical technologies. Addressing a combined market estimated to be in excess of $3 billion annually; Misonix's proprietary ultrasonic medical devices are used for wound debridement, cosmetic surgery, neurosurgery, laparoscopic surgery, and other surgical and medical applications. Additional information is available on the Company's Web site at www.misonix.com.
Safe Harbor Statement
With the exception of historical information contained in this press release, content herein may contain "forward looking statements" that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Investors are cautioned that forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the statements made. These factors include general economic conditions, delays and risks associated with the performance of contracts, risks associated with international sales and currency fluctuations, uncertainties as a result of research and development, acceptable results from clinical studies, including publication of results and patient/procedure data with varying levels of statistical relevancy, risks involved in introducing and marketing new products, potential acquisitions, consumer and industry acceptance, litigation and/or court proceedings, including the timing and monetary requirements of such activities, the timing of finding strategic partners and implementing such relationships, regulatory risks including approval of pending and/or contemplated 510(k) filings, the ability to achieve and maintain profitability in the Company's business lines, and other factors discussed in the Company's Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company disclaims any obligation to update its forward-looking relationships.
SOURCE Misonix, Inc.