North American Scientific, Inc. announced today that it has entered into a definitive agreement to sell its prostate brachytherapy product line to Best Theratronics, Ltd., part of the TeamBest Family of Companies. These products currently include Prospera® brachytherapy seeds, SurTRAK™ needles and strands and various accessories used primarily in the treatment of prostate cancer. NASM will receive $5 million for the product line, with $2 million being paid at the closing of the transaction and the remaining $3 million being paid in installments over the 12 month period following the closing.
NASM’s board of directors has approved the transaction, which is subject to approval by the stockholders of NASM and satisfaction of other customary closing conditions. A meeting of NASM’s stockholders to consider and vote on the proposed transaction will be called and held as promptly as possible, consistent with the requirements of the Securities and Exchange Commission ("SEC"), The Nasdaq Stock Market and Delaware law. The transaction is expected to close in April 2009. NASM and Best also entered into a short term Management Agreement which provides that Best will manage NASM’s prostate brachytherapy business from March 1, 2009 until the closing of the transaction.
"This divestiture allows us to focus exclusively on our implantable ClearPathTM devices which were developed to optimize local radiation delivery for the treatment of breast cancer. We believe that a focused effort on this exciting women’s health opportunity will give us the best chance to deliver the shareholder value that we strive for,” said John Rush, President & CEO. “While we are confident that this is the right strategic direction for our organization, these decisions are always difficult when it comes down to customers and employees. This decision was made somewhat easier knowing that TeamBest has an employee friendly, customer focused culture throughout its organization.”
“We thank John Rush and the dedicated employees of NASI for their contribution in the fight against cancer. We look forward to providing NASI’s customers access to the TeamBest portfolio of radiotherapy and diagnostic products across a wide variety of clinical applications. This acquisition is a continuation of our strategy to provide hospitals and clinicians one stop, low cost, effective products and services," said Krishnan Suthanthiran, President, Best Theratronics, Ltd.
About North American Scientific, Inc.
North American Scientific is an innovator in radiation therapy in the fight against cancer. Its products provide physicians with tools for the treatment of prostate and breast cancer. The Company is gaining clinical experience with its ClearPath™ multi-channel catheter breast brachytherapy devices. They are the only such devices approved for both high dose and continuous release, or low dose, radiation treatments. The devices are designed to provide flexible, precise dose conformance and an innovative delivery system that is intended to offer the more advanced form of brachytherapy for the treatment of breast cancer.
Contact:
North American Scientific, Inc.
Brett L. Scott, Senior Vice President and CFO
818-734-8600
IR@nasmedical.com
Source: North American Scientific, Inc.
NASM’s board of directors has approved the transaction, which is subject to approval by the stockholders of NASM and satisfaction of other customary closing conditions. A meeting of NASM’s stockholders to consider and vote on the proposed transaction will be called and held as promptly as possible, consistent with the requirements of the Securities and Exchange Commission ("SEC"), The Nasdaq Stock Market and Delaware law. The transaction is expected to close in April 2009. NASM and Best also entered into a short term Management Agreement which provides that Best will manage NASM’s prostate brachytherapy business from March 1, 2009 until the closing of the transaction.
"This divestiture allows us to focus exclusively on our implantable ClearPathTM devices which were developed to optimize local radiation delivery for the treatment of breast cancer. We believe that a focused effort on this exciting women’s health opportunity will give us the best chance to deliver the shareholder value that we strive for,” said John Rush, President & CEO. “While we are confident that this is the right strategic direction for our organization, these decisions are always difficult when it comes down to customers and employees. This decision was made somewhat easier knowing that TeamBest has an employee friendly, customer focused culture throughout its organization.”
“We thank John Rush and the dedicated employees of NASI for their contribution in the fight against cancer. We look forward to providing NASI’s customers access to the TeamBest portfolio of radiotherapy and diagnostic products across a wide variety of clinical applications. This acquisition is a continuation of our strategy to provide hospitals and clinicians one stop, low cost, effective products and services," said Krishnan Suthanthiran, President, Best Theratronics, Ltd.
About North American Scientific, Inc.
North American Scientific is an innovator in radiation therapy in the fight against cancer. Its products provide physicians with tools for the treatment of prostate and breast cancer. The Company is gaining clinical experience with its ClearPath™ multi-channel catheter breast brachytherapy devices. They are the only such devices approved for both high dose and continuous release, or low dose, radiation treatments. The devices are designed to provide flexible, precise dose conformance and an innovative delivery system that is intended to offer the more advanced form of brachytherapy for the treatment of breast cancer.
Contact:
North American Scientific, Inc.
Brett L. Scott, Senior Vice President and CFO
818-734-8600
IR@nasmedical.com
Source: North American Scientific, Inc.
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