- Alliance Establishes Partnership with Leading Renal Products Company in Asia
- Collaboration Expected to Yield Gross Margin Improvement and Accelerate Path to Profitability
- Financing Provided in Connection with Alliance Significantly Improves Balance Sheet and Cash Flow
LAWRENCE, Mass., May 18 /PRNewswire-FirstCall/ -- NxStage Medical, Inc. (Nasdaq: NXTM), a leading manufacturer of innovative dialysis products, today announced its plans to form a strategic business alliance with Asahi Kasei Kuraray Medical, ("Asahi"), a leading medical supply company headquartered in Japan. The signed agreements between the partners are multi-faceted, but most importantly leverage NxStage's production expertise in its existing dialyzer manufacturing facility in Germany and Asahi's high performance polysulfone hollow-fiber membranes. In addition, Asahi will provide NxStage with $40 million of debt financing to pay off its entire debt obligation owed under its GE credit facility.
The alliance combines the complementary strengths of the two partners in innovative and competitive technology, product development, and market presence. This transaction is expected to enable both companies to accelerate their global growth strategy through mutual synergy.
Elements of the Alliance:
NxStage will assemble and label its dialyzers for Asahi under the Asahi name brand at NxStage's facilities in Germany. Asahi will sell the dialyzers exclusively in Asia and non-exclusively in rest of world; however, NxStage is retaining all its rights in North America. When Asahi desires additional capacity from NxStage, Asahi shall fund the construction of a new facility to provide both parties with additional dialyzer production capacity. The new facility would be
|SOURCE NxStage Medical, Inc.|
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