Abaxis, Inc. and VCA Inc. Announce Long-Term Product Supply Agreement and a Co-Marketing Agreement for Laboratory Services, VetScan Chemistry Analyzers and Reagent Discs

UNION CITY, Calif., May 12, 2014 /PRNewswire/ -- Abaxis, Inc. (NasdaqGS: ABAX), a medical products company manufacturing point-of-care blood analysis systems, and VCA Inc. (NasdaqGS: WOOF), a leading animal healthcare company in the United States and Canada, today jointly announced they have entered into two long-term agreements, the first a long-term product supply agreement for VCA's Animal Hospitals and the second a co-marketing agreement with VCA's Antech Diagnostic reference laboratories.

Under the long-term product supply agreement VCA will purchase VetScan VS2 chemistry analyzers and diagnostic reagent discs from Abaxis for placement in the majority of VCA's more than 600 animal hospitals located in North America. 

Additionally, VCA and Abaxis have entered into a non-exclusive co-marketing relationship to capitalize on new growth opportunities within the animal healthcare industry. Representatives from Abaxis and Antech Diagnostics will work together in providing complete state-of-the-art diagnostic solutions to better serve veterinary practices throughout North America with the ability to combine Antech Diagnostic laboratory services with the use of VetScan VS2 chemistry analyzers.

Clint Severson, chairman, president and chief executive officer of Abaxis, said, "We are pleased to be entering into this long-term supply agreement with VCA.  As a leader in the veterinary hospital industry VCA enjoys a well-deserved reputation of providing compassionate care and delivering excellent patient outcomes for pet owners throughout the United States.  We are pleased to provide VCA the leading-edge diagnostic technology to enhance their ability to provide patient care on an even more timely and cost-effective manner."

Mr. Severson added, "This co-marketing agreement with Antech Diagnostics creates new and exciting opportunities for in-house testing and reference laboratory services that can now be utilized by any type of veterinary practice, be it single doctor, multi-doctor or specialty practice.  Working together, both companies are now better positioned to generate incremental new business and to expand market share in their respective markets. We believe this will be a mutually beneficial agreement for the next decade and we are excited with the possibilities ahead."

Bob Antin, chairman, president and chief executive officer of VCA, commented, "We are excited by the greater access our veterinarians will now have to Abaxis' state-of-the-art diagnostic technology as we work towards our core mission of providing quality veterinary care to our patients and peace of mind for our pet owner clients."

"We also see great potential benefit in strengthening the relationship between two demonstrated leaders in veterinary diagnostics by joining the sales and marketing capabilities of Antech Diagnostics and Abaxis.  We are confident that this relationship will further the goals of both companies in providing a comprehensive suite of diagnostic solutions to the veterinary community.  We look forward to working with Abaxis for many years to come."

About Abaxis

Abaxis develops, manufactures, markets and sells portable blood analysis systems for use in any veterinary or human patient-care setting to provide clinicians with rapid blood constituent measurements.  The system consists of a compact, 5.1 kilogram (11.2 pounds), portable analyzer and a series of single-use plastic discs, called reagent discs, that contain all the chemicals required to perform a panel of up to 13 tests on veterinary patients and 14 tests on human patients.  The system can be operated with minimal training and performs multiple routine tests on whole blood, serum or plasma samples.  The system provides test results in less than 12 minutes with the precision and accuracy equivalent to a clinical laboratory analyzer.  The veterinary business also provides to the animal health and research market a line of hematology instruments for point-of-care complete blood counts (CBC), a specialty instrument to screen for and detect clotting disorders and to measure equine fibrinogen levels, a handheld instrument for the rapid assessment of certain critical care tests and rapid point-of-care tests for Heartworm infections, Parvovirus, Giardia and Lyme disease. 

Abaxis, through its AVRL division, provides routine laboratory testing as well as specialty testing for veterinarians nationwide.  For more information, visit http://www.abaxis.com.

About VCA/Antech Diagnostics

VCA owns, operates and manages the largest networks of freestanding veterinary hospitals and veterinary-exclusive clinical laboratories in the country, is the largest provider of online communication, professional education and marketing solutions to the veterinary community, and supplies diagnostic imaging equipment to the veterinary industry.  For further information on VCA, visit its website at www.vcaantech.com.

Antech Diagnostic services more than 16,000 animal hospitals throughout North America through its network of more than 50 reference laboratories in the United States and Canada.  Antech Diagnostic offers over 300 different tests in chemistry, pathology, endocrinology, serology, hematology, and microbiology and provides its clients with expert telemedicine with access to more than 400 board-certified specialists 24/7.  For further information on Antech Diagnostics, visit its website at www.antechdiagnostics.com.

Forward Looking Statements

This press release includes, and our conference call will include, statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"), including but not limited to statements related to Abaxis' cash position, financial resources and potential for future growth, market acceptance and penetration of new or planned product offerings, and future recurring revenues and results of operations.  Abaxis claims the protection of the safe-harbor for forward-looking statements contained in the Reform Act.  These forward-looking statements are often characterized by the terms "may," "believes," "projects," "expects," "anticipates," or words of similar import, and do not reflect historical facts.  Specific forward-looking statements contained in this press release or in Abaxis' conference call may be affected by risks and uncertainties, including, but not limited to, those related to risks related to the transition of its U.S. medical sales to Abbott, potential excess inventory levels and inventory imbalances at the company's distributors, losses or system failures with respect to Abaxis' facilities or manufacturing operations, fluctuations in quarterly operating results, dependence on sole suppliers, the market acceptance of Abaxis' products and services, the continuing development of its products, required United States Food and Drug Administration clearance and other government approvals, risks associated with manufacturing and distributing its products on a commercial scale free of defects, risks related to the introduction of new instruments manufactured by third parties, risks associated with competing in the human diagnostic market, risks related to the protection of Abaxis' intellectual property or claims of infringement of intellectual property asserted by third parties and risks related to condition of the United States economy.  Readers should also refer to the section entitled "Risk Factors" in Abaxis' annual report on Form 10-K, recent quarterly reports on Form 10-Q and Abaxis' other periodic reports filed with the United States Securities and Exchange Commission.  Forward-looking statements speak only as of the date the statements were made.  Abaxis does not undertake and specifically disclaims any obligation to update any forward-looking statements.

SOURCE Abaxis, Inc.