2 December 2009 (PublicWire) — Hydromer, Inc. (OTCBB: HYDI) announces the sale of its Private Label Jejunostomy Catheter and Nasogastric Feeding Catheter business to Forefront Medical Technologies. Forefront Medical Technologies is a wholly owned subsidiary of Vicplas International Limited, a company registered in the Republic of Singapore.
Under the terms of this agreement Forefront Medical Technologies (“Forefront”) will pay US$800,000 in cash to Hydromer, Inc.’s wholly owned subsidiary Biosearch Medical Products, Inc. (“Biosearch”). $400,000 was payable upon the effective date and the second $400,000 is held in escrow until the transition is complete. The agreement also calls for Biosearch to assign certain customer supply agreements to Forefront and for a 3 year non-compete provision. Biosearch will continue to manufacture these products during the transition at an agreed upon transfer price.
In addition, a separate supply agreement has been entered between the two parties for the Hydromer® hydrophilic coating solution used on those products.
“This transaction was essential for our strategic realignment allowing us to reclaim valuable medical clean room space for our higher margin core business of medical coating services,” commented Martin von Dyck, President of Biosearch and Executive Vice President of Hydromer, Inc., adding, “In addition to providing us with an enhanced ability to focus on the medical coatings business and bolstering our balance sheet, we are now in a much stronger position to self finance our continued R&D and marketing efforts in our diversified product portfolio of T-HEXX® animal hygiene, Cosmetics and Industrial coating technologies.”
Hydromer, Inc. is a technology-based company involved in the research and development, manufacture and commercialization of specialized polymer and hydrogel products for medical device, pharmaceutical, animal health, cosmetic, personal care, and industrial uses. For the latest information about Hydromer, Inc. and its products, please visit our web site at hydromer. For additional information please contact: Martin von Dyck, 908-722-5000, Executive Vice President.
For additional information please contact:
Martin von Dyck
Executive Vice President