Chronimed Announces Acquisition of The Transplant Pharmacy(R)

Acquisition Increases Chronimed's Dominance

In Post-Transplant Medication Delivery



Apr 05, 2001, 01:00 ET from Chronimed Inc.

    MINNEAPOLIS, April 5 /PRNewswire/ -- Chronimed Inc. (Nasdaq:   CHMD)
 announced today that it has signed a binding purchase agreement with
 SangStat (Nasdaq:   SANG) to acquire The Transplant Pharmacy(R), which provides
 mail order distribution of drugs and transplant patient management services.
 Chronimed paid cash for substantially all assets, excluding inventory and
 accounts receivable.  The transaction is expected to close by April 30, 2001.
     Commenting on the acquisition, Henry F. Blissenbach, Chronimed's chairman
 and chief executive officer said, "This purchase provides two primary
 synergistic benefits.  First, the increased patient volumes can be easily
 absorbed into our current mail order and StatScript retail pharmacies, thereby
 increasing our leverage.  Second, the patient management programs that have
 been developed by SangStat will merge nicely with Chronimed's current Life
 Management Program(SM).  The combination of these two programs will create a
 new industry standard for transplant patient management services."
     Mr. Blissenbach further commented, "Chronimed is unique in our ability to
 dispense these expensive and hard to find medications via mail order delivery
 or through our nationwide chain of StatScript retail pharmacies.  This
 mail/retail combination provides patients with the luxury of choosing how to
 receive their medications, creates a partnership with transplant centers to
 provide same-day deliveries, and gives us the ability to service patients with
 a wide range of insurance plans including, Medicare, most Medicaids, and
 hundreds of third party payors.  As a result, this acquisition will strengthen
 our position as one of the dominant companies in the post-transplant
 medication delivery sector."
     Gregory H. Keane, Chronimed's Chief Financial Officer, commented on the
 positive financial impact to the business, "If this acquisition closes by
 April 30, Chronimed should see a slight increase to fourth quarter revenue
 with a neutral earnings impact.  For the full year of fiscal 2002, which
 begins June 30, 2001, we expect revenue and earnings to increase approximately
 2 - 4% over current analyst estimates."
 
     Chronimed Inc. is a disease-focused specialty pharmacy drug distribution
 company serving the prescription drug needs of people with selected chronic
 health conditions.  The Company distributes pharmaceuticals and provides
 specialized patient management services nationwide for people with long-term
 chronic conditions such as HIV/AIDS, organ transplant, and other diseases
 treated with oral and injectable biotech medications.  Chronimed works
 directly with patients, physicians, payors, manufacturers, and wholesalers to
 improve clinical and cost-of-care outcomes.  Chronimed's web site address is
 www.chronimed.com .
 
     SangStat is a global biotechnology company building on its foundation in
 transplantation to discover, develop and market high value therapeutic
 products in the transplantation, immunology and hematology/oncology areas.
 Since 1988, SangStat has been dedicated to improving the outcome of organ and
 bone marrow transplantation through the development and marketing of products
 to address all phases of transplantation in the worldwide market.  SangStat's
 US headquarters are in Fremont, California.  SangStat also maintains a strong
 European presence, including direct sales and marketing forces in France,
 Germany, Italy, Spain, and the U.K., and distributors throughout the rest of
 the world.  SangStat's stock is traded on the Nasdaq under the symbol "SANG".
 The company's web site is located at www.sangstat.com .
 
     As a cautionary note to investors, certain matters discussed in this press
 release are forward-looking statements within the meaning of the Private
 Securities Litigation Reform Act of 1995.  Such matters involve risks and
 uncertainties that may cause actual results to differ materially, including
 the following:  changes in economic conditions; general competitive factors;
 pressures on gross profit margins; the Company's ability to execute its sales
 and marketing plans; changes in the status of managed care contracts; changes
 in ownership; material litigation; and the risks described from time to time
 in the Company's public reports filed with the SEC.
 
     Contacts:  Paul S. Dunn, Investor Relations, or
                Henry Blissenbach, Chairman and CEO,
                at Chronimed Inc. (952) 979-3888
 
 

SOURCE Chronimed Inc.
    MINNEAPOLIS, April 5 /PRNewswire/ -- Chronimed Inc. (Nasdaq:   CHMD)
 announced today that it has signed a binding purchase agreement with
 SangStat (Nasdaq:   SANG) to acquire The Transplant Pharmacy(R), which provides
 mail order distribution of drugs and transplant patient management services.
 Chronimed paid cash for substantially all assets, excluding inventory and
 accounts receivable.  The transaction is expected to close by April 30, 2001.
     Commenting on the acquisition, Henry F. Blissenbach, Chronimed's chairman
 and chief executive officer said, "This purchase provides two primary
 synergistic benefits.  First, the increased patient volumes can be easily
 absorbed into our current mail order and StatScript retail pharmacies, thereby
 increasing our leverage.  Second, the patient management programs that have
 been developed by SangStat will merge nicely with Chronimed's current Life
 Management Program(SM).  The combination of these two programs will create a
 new industry standard for transplant patient management services."
     Mr. Blissenbach further commented, "Chronimed is unique in our ability to
 dispense these expensive and hard to find medications via mail order delivery
 or through our nationwide chain of StatScript retail pharmacies.  This
 mail/retail combination provides patients with the luxury of choosing how to
 receive their medications, creates a partnership with transplant centers to
 provide same-day deliveries, and gives us the ability to service patients with
 a wide range of insurance plans including, Medicare, most Medicaids, and
 hundreds of third party payors.  As a result, this acquisition will strengthen
 our position as one of the dominant companies in the post-transplant
 medication delivery sector."
     Gregory H. Keane, Chronimed's Chief Financial Officer, commented on the
 positive financial impact to the business, "If this acquisition closes by
 April 30, Chronimed should see a slight increase to fourth quarter revenue
 with a neutral earnings impact.  For the full year of fiscal 2002, which
 begins June 30, 2001, we expect revenue and earnings to increase approximately
 2 - 4% over current analyst estimates."
 
     Chronimed Inc. is a disease-focused specialty pharmacy drug distribution
 company serving the prescription drug needs of people with selected chronic
 health conditions.  The Company distributes pharmaceuticals and provides
 specialized patient management services nationwide for people with long-term
 chronic conditions such as HIV/AIDS, organ transplant, and other diseases
 treated with oral and injectable biotech medications.  Chronimed works
 directly with patients, physicians, payors, manufacturers, and wholesalers to
 improve clinical and cost-of-care outcomes.  Chronimed's web site address is
 www.chronimed.com .
 
     SangStat is a global biotechnology company building on its foundation in
 transplantation to discover, develop and market high value therapeutic
 products in the transplantation, immunology and hematology/oncology areas.
 Since 1988, SangStat has been dedicated to improving the outcome of organ and
 bone marrow transplantation through the development and marketing of products
 to address all phases of transplantation in the worldwide market.  SangStat's
 US headquarters are in Fremont, California.  SangStat also maintains a strong
 European presence, including direct sales and marketing forces in France,
 Germany, Italy, Spain, and the U.K., and distributors throughout the rest of
 the world.  SangStat's stock is traded on the Nasdaq under the symbol "SANG".
 The company's web site is located at www.sangstat.com .
 
     As a cautionary note to investors, certain matters discussed in this press
 release are forward-looking statements within the meaning of the Private
 Securities Litigation Reform Act of 1995.  Such matters involve risks and
 uncertainties that may cause actual results to differ materially, including
 the following:  changes in economic conditions; general competitive factors;
 pressures on gross profit margins; the Company's ability to execute its sales
 and marketing plans; changes in the status of managed care contracts; changes
 in ownership; material litigation; and the risks described from time to time
 in the Company's public reports filed with the SEC.
 
     Contacts:  Paul S. Dunn, Investor Relations, or
                Henry Blissenbach, Chairman and CEO,
                at Chronimed Inc. (952) 979-3888
 
 SOURCE  Chronimed Inc.