Navigation Links
Rochester Medical Corporation Announces Decision To Exit The Foley Catheter Business

STEWARTVILLE, Minn., Nov. 6, 2012 /PRNewswire/ -- Rochester Medical Corporation (NASDAQ: ROCM) today announced its decision to cease manufacturing and marketing its line of Foley Catheters, including its StrataSI™ and StrataNF™ advanced silicone Foley Catheters.  The Company will continue to fulfill orders for up to 90 days, during which time it expects to deplete the majority of its Foley inventory.

The Company will focus on its core product lines of Intermittent Catheters and Male External Catheters, both of which are successful, profitable, and growing steadily.

Earlier in the current year, the Company engaged Piper Jaffray to help explore its options in exiting or selling the Foley Catheter business.  After completing that process, the Company and the Board of Directors determined that exiting the Foley business presented the best alternative.  The Company will continue to own the intellectual property associated with its Foley catheters in anticipation of deriving additional value from those assets in the future

Current annual sales of Foley Catheters are approximately $3.9 million, representing approximately 6% of the Company's total sales.  Costs and expenses associated with manufacturing and marketing the product are extensive, and this product line has not yet reached a point of positive earnings contribution.  As such, the Company estimates the decision to exit this business will significantly enhance its profitability, adding an estimated $3 to $4 million to its pre-tax profit line on an annual basis.

Commenting on today's announcement, Rochester Medical's CEO and President Anthony J. Conway said, "This is clearly the right decision for the Company.  We have been unable to capture any significant share of the Foley market and cannot justify the significant costs associated with that effort.

"I am pleased to say we will be a much stronger and more profitable company going forward, and we will be tightly focused on the core parts of our business that are robust and growing: Intermittent Catheters and Male External Catheters."

Conway noted that a summary of the long-awaited National Healthcare System Foley Catheter Study was released yesterday in the online publication of The Lancet. The formal study will be published in The Lancet on November 9, 2012.  The study showed no significant difference among the three studied catheters, including the Company's StrataNF™ Foley catheter, in reducing symptomatic infections.  Conway also noted, "Today's announcement to exit the Foley business is the result of a very deliberate and thorough strategic evaluation process conducted over the last several months, and nothing in the study's results suggested we should change our course of action."

The Company plans to provide more clarity on the financial impacts of this announcement on its fiscal 2012 fourth quarter earnings conference call to be held next Tuesday, November 13, 2012 at 3:30 p.m. Central (4:30 p.m. Eastern). For further details about the earnings call, please refer to the investor section of the Rochester Medical website at

Forward-Looking Statements

This press release contains "forward-looking statements" with the meaning of the Private Securities Litigation Reform Act of 1995.  Such statements include, but are not limited to, statements about the future financial and operating results of Rochester Medical.  Such statements are based on currently available information, operating plans and management's expectations about future events and trends.  Such statements inherently involve significant risks and uncertainties that could cause actual results to differ materially from those predicted in such forward-looking statements, including the uncertainty of estimated revenues and profits, the uncertainty of current domestic and international economic conditions that could adversely affect the level of demand for the Company's products and increased volatility in foreign exchange rates, the uncertainty of market acceptance of new product introductions, and  our level of success in increasing  Rochester Medical Direct Sales revenue, the uncertainty of gaining new strategic relationships or locating and capitalizing on strategic opportunities, the uncertainty of timing of Private Label Sales revenues (particularly international customers), FDA and other regulatory review and response times, and other risk factors listed from time to time in the Company's SEC reports and filings, including, without limitation, the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended September 30, 2011, and quarterly reports on Forms 10-Q.  Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made.  The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

About Rochester Medical Corporation

Rochester Medical Corporation develops, manufactures, and markets disposable medical catheters and devices for urological and continence care applications.  The Company also sells certain ostomy and wound and scar care products and other brands of urological products into the European marketplace.

For further information, please contact Anthony J. Conway, President and Chief Executive Officer or David A. Jonas, Chief Financial Officer of Rochester Medical Corporation at (507) 533-9600 or Parice Halbert, CFA, at Westwicke Partners (443) 213-0500.  More information about Rochester Medical is available on its website at

SOURCE Rochester Medical Corporation
Copyright©2012 PR Newswire.
All rights reserved

Related medicine technology :

1. Rochester Medical Introduces Magic3® Coude Tip Hydrophilic Intermittent Catheter
2. Rochester Medical Announces Third Quarter 2012 Earnings Conference Call Friday, July 27, 2012
3. Rochester Medical Reports Third Quarter Results
4. Rochester Medical Announces Fourth Quarter 2012 Earnings Conference Call Tuesday, November 13, 2012
5. Lung Cancer Alliance Congratulates 75 Medical Centers For Moving Swiftly And Responsibly On Lung Cancer Screening
6. Medical Device Developers - Network at BIOMEDevice Boston Next Week
7. Winner Medicals Special Committee Appoints Independent Financial Advisor and Retains Legal Counsel
8. Study Finds Utilizing Integrated Medical and Pharmacy Data Improves Ability to Forecast Use of High-cost Specialty Treatments
9. CareFusion to Sell Neurodiagnostic Business to Natus Medical for $58 Million
10. ulrich medical USA™ Releases New Expandable Spinal Implant for US Market
11. Qmed, the Leading Global MedTech Industry Resource, Partners with Clarimed, to Provide the Medical Manufacturing and Healthcare Industry with FDA Reports on Adverse Events
Post Your Comments:
(Date:12/1/2015)... VIEJO, Calif. , Dec. 1, 2015 /PRNewswire/ ... the prevalence of symptoms for pseudobulbar affect (PBA), ... outbursts of laughing and/or crying resulting from certain ... use of antipsychotic medications in nursing home residents, ... Geriatric Psychiatry. The study showed that almost one ...
(Date:12/1/2015)... 1, 2015 ... of the  "2016 Shigella Testing Market: ... Competitive Strategies, Emerging Opportunities--US, Europe (France, ... to their offering. --> ... of the  "2016 Shigella Testing Market: ...
(Date:11/30/2015)... BASEL, Switzerland , Dec. 1, 2015 ... through its wholly-owned UK subsidiary Proximagen Ltd., today announced ... novel, oral small molecule inhibitor of Vascular Adhesion Protein ... in the treatment of inflammatory disease. The VAP-1 inhibitor ... --> --> Under the terms ...
Breaking Medicine Technology:
(Date:12/1/2015)... ... 01, 2015 , ... The workstation boundaries for imaging specialists ... Systems launches MED-TAB™ -- the world’s first portable DICOM-calibrated medical image display, debuting ... December 4, 2015. , MED-TAB is expected to change teleradiology because for ...
(Date:12/1/2015)... IL (PRWEB) , ... December 01, 2015 , ... ... keeping their independence is everything. That is why Hollister Incorporated has launched the ... to offer this next product in the VaPro touch free catheter portfolio,” said ...
(Date:12/1/2015)... ... December 01, 2015 , ... McLean, VA., ... awarded a fixed price per sprint agile development contract to support the National ... over five years, provides software engineering, infrastructure, as well as operations and sustainment ...
(Date:12/1/2015)... ... December 01, 2015 , ... XTC Semifinals 2016 - ... to head to Las Vegas for CES 2016, the world’s largest Consumer Electronic Show, ... Technology Association Gary Shapiro, Founding Partner of Pacific Investments Veronica Serra, and venture capitalist ...
(Date:12/1/2015)... ... December 01, 2015 , ... Dr. Arash ... Modern Man for 2015. , Angeleno Magazine is a division of Modern ... in 1994, Modern Luxury includes more than 50 magazine titles across 15 major ...
Breaking Medicine News(10 mins):