ThermoGenesis Corp., a leading supplier of innovative products for processing and storing adult stem cells, announced a new enhanced distribution agreement with GE Healthcare, a unit of General Electric Company, for its AXP® AutoXpress ™ (AXP) System used in the processing of cord blood.
"This agreement provides evidence that we are successfully executing our growth strategy and solidifies our joint sales and distribution initiatives," said J. Melville Engle, Chief Executive Officer of ThermoGenesis.
Under the revised distribution contract, which runs through July, 2012, GE Healthcare will continue to distribute the AXP product line, excluding certain countries in Latin and South America, Asia, CIS and Eastern Europe. GE Healthcare will provide incremental funding for marketing support and market research beyond its previous commitments. The new arrangement also provides incentives for both parties related to sales success, product quality and delivery.
"This contract leverages the strengths of GE Healthcare in those geographies where it has the greatest presence and maximizes our joint efforts. GE Healthcare has created a strong foundation for the AXP, and maintaining continuity of the relationship will be of value to existing customers. Additionally, GE Healthcare has AXP evaluations underway at a number of prospective customer sites that we anticipate will come to fruition over the next few months. The fact that ThermoGenesis is a stronger company today has engendered a renewed commitment from GE Healthcare to support the AXP marketing effort," Engle said.
"This agreement represents a major distribution and commercialization milestone for the Company. It positions us well to accomplish both our near and long-term objectives, beginning with achieving leadership in the adult stem cell processing and storage markets, as well as producing increased product revenues that will drive us to sustained profitability," noted Engle. "Our sales growth strategy begins with increasing market share with our core products in existing markets, then expanding into new markets and geographies. We continue to pursue new product opportunities in the regenerative medicine arena."
"Renewing our partnership with ThermoGenesis further demonstrates GE Healthcare's commitment to technology leadership in cord blood processing as part of our strategic Cell Technologies business. We continue to invest in the growth of this business and the AXP forms an important part of our comprehensive offering to customers working with adult stem cells," said Konstantin Fiedler, General Manager, Cell Technologies, for GE Healthcare.
The foregoing description of the agreement with GEHC does not purport to be complete and is qualified in its entirety by reference to the complete text of the agreement, which is filed as an exhibit to our Form 8-K filed with the Securities and Exchange Commission.