QMed, Inc. Announces $4,000,000 Equity Infusion

Apr 05, 2001, 01:00 ET from QMed, Inc

    LAURENCE HARBOR, N.J., April 5 /PRNewswire/ -- QMed, Inc, (Nasdaq: QEKG)
 today announced that investors led by Galen Partners III, L.P. have privately
 purchased 796,813 shares of common stock for $4,000,000.  With this
 transaction, their third long-term investment in QMed since 1997, Galen has
 now committed a total of $7,000,000 from its various funds.
     Michael W. Cox, QMed President and CEO, said, "Given that we are currently
 implementing several major health plan contracts, and given as well as our
 expectations for near term new business, this additional equity capital is
 timely. It also provides the added flexibility necessary to continue our
 aggressive ongoing product and service refinements. We fully intend to press
 the substantial technology lead we already bring to the explosive health care
 services and disease management markets. And we are obviously gratified that
 in the current financial environment, this strategic boost to our business
 momentum was expeditiously completed."
     Cox continued, "By shifting the current treatment paradigm from damage
 control to prevention, QMed represents the cost-effective frontier in applying
 clinical and process information technology to the analysis and delivery of
 evidence-based medicine to sufferers of chronic cardiovascular disease. Based
 upon recently increasing contacts, we believe that market participants,
 including both analysts and investors, are coming to appreciate the importance
 of the significant new business booked in the past year. That new business
 shows that our recurring revenue high margin business model is solid,
 increasingly successful and, it brings, for the first time, sequential growth
 visibility to our future financial results."
     "Our commercial business model is an important element to evaluation," he
 added. "But perhaps just as important is our selection by Medicare to test
 reimbursing our technology-based process for managing the health and the costs
 of coronary artery disease patients in the vast Medicare fee for service
 program. That selection is a clear signal that our clinical information
 technology could play a leading role in modernizing Medicare by helping to
 solve its financial and health administration crises. Medicare is a major
 national initiative, which directly impacts nearly 40 million Americans, and
 indirectly affects every citizen. Since QMed is the only publicly traded firm
 selected for this important test, the opportunity for the Company and its
 shareholders is clearly immense."
 
     About QMed, Inc.
     QMed, Inc.'s, Ohms|CVD (On-Line Health Management System for
 Cardiovascular Disease) is a powerful and elegant proprietary information
 technology bringing combined patient-specific prognosis and national standard
 therapeutic recommendations to primary care doctors, while incorporating
 process reports of expense and health outcomes for the managed care
 organization. This cost-effective and cost beneficial system is currently
 utilized by Regence Blue Cross Blue Shield of Oregon, in the State of
 Washington by Regence BlueShield, by PacifiCare Health in Northern California,
 CHA Health in Kentucky, and in South Dakota with DAKOTACARE. QMed was recently
 selected to participate in the Medicare Coordinated Care Demonstration to test
 the feasibility of reimbursing its services in the vast Medicare fee for
 service program. The Company also designs and markets diagnostic medical
 devices. More information on QMed, Inc. can be obtained at
 http://www.qmedinc.com, by calling (732) 566-2666 or by emailing
 investor@qmedinc.com.
 
     About Galen Partners
     Galen Partners invests in emerging healthcare companies with superior
 management, the potential for market leadership and the prospect for
 outstanding financial performance. Galen Partners provides investment advisory
 services exclusively for the Galen Partners' Limited Partnerships. The pool of
 prestigious institutional investors in the partnerships includes corporate and
 state pension funds, insurance companies and endowment funds, augmented by
 capital provided by the principals of Galen. Since inception in 1990, Galen
 has helped to create, through its portfolio of investments, businesses that
 today have attained an aggregate market value exceeding $6 billion. For more
 information concerning Galen Partners, the website is
 http://www.galen-partners.com.  Qmed does not monitor nor does it take
 responsibility for the information contained in the Galen Partners website.
 
     Except for historical information contained herein, matters discussed in
 this news release are forward-looking statements that involve risks and
 uncertainties. They include but are not limited to those relating to the
 timely implementation of programs, the impact of competitive product
 introductions, acceptance and pricing, and those risks detailed in the
 Company's filings with the Securities and Exchange Commission (SEC).  Actual
 results may differ materially from any forward-looking statements due to these
 risks and uncertainties.
 
 

SOURCE QMed, Inc
    LAURENCE HARBOR, N.J., April 5 /PRNewswire/ -- QMed, Inc, (Nasdaq: QEKG)
 today announced that investors led by Galen Partners III, L.P. have privately
 purchased 796,813 shares of common stock for $4,000,000.  With this
 transaction, their third long-term investment in QMed since 1997, Galen has
 now committed a total of $7,000,000 from its various funds.
     Michael W. Cox, QMed President and CEO, said, "Given that we are currently
 implementing several major health plan contracts, and given as well as our
 expectations for near term new business, this additional equity capital is
 timely. It also provides the added flexibility necessary to continue our
 aggressive ongoing product and service refinements. We fully intend to press
 the substantial technology lead we already bring to the explosive health care
 services and disease management markets. And we are obviously gratified that
 in the current financial environment, this strategic boost to our business
 momentum was expeditiously completed."
     Cox continued, "By shifting the current treatment paradigm from damage
 control to prevention, QMed represents the cost-effective frontier in applying
 clinical and process information technology to the analysis and delivery of
 evidence-based medicine to sufferers of chronic cardiovascular disease. Based
 upon recently increasing contacts, we believe that market participants,
 including both analysts and investors, are coming to appreciate the importance
 of the significant new business booked in the past year. That new business
 shows that our recurring revenue high margin business model is solid,
 increasingly successful and, it brings, for the first time, sequential growth
 visibility to our future financial results."
     "Our commercial business model is an important element to evaluation," he
 added. "But perhaps just as important is our selection by Medicare to test
 reimbursing our technology-based process for managing the health and the costs
 of coronary artery disease patients in the vast Medicare fee for service
 program. That selection is a clear signal that our clinical information
 technology could play a leading role in modernizing Medicare by helping to
 solve its financial and health administration crises. Medicare is a major
 national initiative, which directly impacts nearly 40 million Americans, and
 indirectly affects every citizen. Since QMed is the only publicly traded firm
 selected for this important test, the opportunity for the Company and its
 shareholders is clearly immense."
 
     About QMed, Inc.
     QMed, Inc.'s, Ohms|CVD (On-Line Health Management System for
 Cardiovascular Disease) is a powerful and elegant proprietary information
 technology bringing combined patient-specific prognosis and national standard
 therapeutic recommendations to primary care doctors, while incorporating
 process reports of expense and health outcomes for the managed care
 organization. This cost-effective and cost beneficial system is currently
 utilized by Regence Blue Cross Blue Shield of Oregon, in the State of
 Washington by Regence BlueShield, by PacifiCare Health in Northern California,
 CHA Health in Kentucky, and in South Dakota with DAKOTACARE. QMed was recently
 selected to participate in the Medicare Coordinated Care Demonstration to test
 the feasibility of reimbursing its services in the vast Medicare fee for
 service program. The Company also designs and markets diagnostic medical
 devices. More information on QMed, Inc. can be obtained at
 http://www.qmedinc.com, by calling (732) 566-2666 or by emailing
 investor@qmedinc.com.
 
     About Galen Partners
     Galen Partners invests in emerging healthcare companies with superior
 management, the potential for market leadership and the prospect for
 outstanding financial performance. Galen Partners provides investment advisory
 services exclusively for the Galen Partners' Limited Partnerships. The pool of
 prestigious institutional investors in the partnerships includes corporate and
 state pension funds, insurance companies and endowment funds, augmented by
 capital provided by the principals of Galen. Since inception in 1990, Galen
 has helped to create, through its portfolio of investments, businesses that
 today have attained an aggregate market value exceeding $6 billion. For more
 information concerning Galen Partners, the website is
 http://www.galen-partners.com.  Qmed does not monitor nor does it take
 responsibility for the information contained in the Galen Partners website.
 
     Except for historical information contained herein, matters discussed in
 this news release are forward-looking statements that involve risks and
 uncertainties. They include but are not limited to those relating to the
 timely implementation of programs, the impact of competitive product
 introductions, acceptance and pricing, and those risks detailed in the
 Company's filings with the Securities and Exchange Commission (SEC).  Actual
 results may differ materially from any forward-looking statements due to these
 risks and uncertainties.
 
 SOURCE  QMed, Inc