[May 24, 2016] |
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Covalon Announces Breakthrough Success in Saudi Arabia
Covalon Technologies Ltd. (the "Company" or "Covalon") (TSXV:COV), an
advanced medical technologies company, today announced that it has
received a $1.9 million order to fulfil demand for its infection
management and advanced wound care products in Saudi Arabia. Covalon
expects to ship and be paid for the full order prior to the end of June
2016.
Covalon has been successful in capturing market share from other
multi-national companies, although the process took longer than
anticipated. Due to delays in the awarding of tenders by the healthcare
authorities in Saudi Arabia, approximate half of the order received was
delayed and originally anticipated to have shipped in March 2016. As a
result, the revenue associated with the delayed portion of the order
will be fully recognized in the quarter ended June 30, 2016.
"I have always been of the view that in order for companies like Covalon
to be successful they have to specifically target a geographic market in
order to achieve a sales breakthrough", said Brian Pedlar, Covalon's
Chief Executive Officer. "Today's announcement demonstrates that Covalon
has achieved success in Saudi Arabia and we are in the process of
replicating this business model in other markets throughout the world."
"Covalon employed an aggressive brand awareness campaign in Saudi Arabia
which resulted in our IV Clear, SurgiClear and ColActive Plus products
achieving top brand recognition in their categories in major hospitals
associated with the Ministry of Health", said Hamed Abbasian, Covalon's
Vice President of Business Development. "IV Clear has been selected as
the exclusive antimicrobial vascular access dressing in the Intensive
Care Unit of one of the most influential hospitals in Saudi Arabia. The
Diabetic Foot Department of King Fahd General Hospital in Jeddah, which
is the reference hospital for the Saudi Arabian Ministry of Health for
patients with diabetic foot conditions, considers ColActive Plus as the
most advanced collagen dressing available in the market for treating
chronic wounds. ColActive Plus and SurgiClear have been selected as
winners of their respectie categories in a major tender. These
successes have resulted in Covalon growing its market share rapidly over
the past year, while most other international wound care companies have
seen declines in their business in Saudi Arabia."
Covalon has also been winning business in the private hospital market in
Saudi Arabia. Covalon is the exclusive supplier of wound care products
to the Health Oasis Hospital in Riyadh, a major private hospital in
Saudi Arabia, considered as one of the most advanced long term care
hospital in the Middle East. Because of the success of ColActive Plus in
preventing the need for limb amputations on diabetic patients with
chronic wounds, Covalon became one of the main suppliers of wound care
products to the International Medical Centre hospital in Jeddah.
Covalon offers infection management and advanced wound management
dressings for both acute and chronic wounds, including its CovaWound™
ColActive® and SurgiClear™ brands that have strong clinical evidence to
support their superior efficacy in helping to prevent infections in
surgical procedures and in chronic diabetic foot wounds. ColActive and
CovaWound when used together have the ability to rapidly promote wound
closure and healing in chronic wounds, which remains an under-addressed
market in Saudi Arabia.
About Covalon Covalon Technologies Ltd. researches, develops
and commercializes new healthcare technologies that help save lives
around the world. Covalon's patented technologies, products and services
address the advanced healthcare needs of medical device companies,
healthcare providers and individual consumers. Covalon's technologies
are used to prevent, detect and manage medical conditions in specialty
areas such as wound care, tissue repair, infection control, disease
management, medical device coatings and biocompatibility. To learn more
about Covalon, visit our website at www.covalon.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements which reflect
the Company's current expectations regarding future events. The
forward-looking statements are often, but not always, identified by the
use of words such as "seek", "anticipate", "plan, "estimate", "expect",
"intend" and statements that an event or result "may", "will", "should",
"could" or "might" occur or be achieved and other similar expressions.
These forward-looking statements involve risk and uncertainties,
including the difficulty in predicting product approvals, acceptance of
and demands for new products, the impact of the products and pricing
strategies of competitors, delays in developing and launching new
products, the regulatory environment, fluctuations in operating results
and other risks, any of which could cause results, performance, or
achievements to differ materially from the results discussed or implied
in the forward-looking statements. Many risks are inherent in the
industry; others are more specific to the Company. Investors should
consult the Company's ongoing quarterly filings for additional
information on risks and uncertainties relating to these forward-looking
statements. Investors should not place undue reliance on any
forward-looking statements. The Company assumes no obligation to update
or alter any forward-looking statements whether as a result of new
information, further events or otherwise.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160524005690/en/
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