BOSTON, April 19, 2021 /PRNewswire/ -- Haemonetics
Corporation (NYSE: HAE) ("Haemonetics" or the "Company"), a global
medical technology company focused on delivering innovative medical
solutions to drive better patient outcomes, today announced that
CSL Plasma, Ltd. ("CSL") has informed Haemonetics of its intent not
to renew its Supply Agreement with Haemonetics for the use of
PCS2® Plasma Collection System devices and the purchase
of disposable plasmapheresis kits in the U.S. following the
expiration of the current term in June
2022. Haemonetics was informed that the decision was based
on changes in CSL's internal strategy and was not related to
product or service quality.
This notice of intent not to renew is specific to Haemonetics'
plasmapheresis equipment and disposables Supply Agreement for CSL's
U.S. plasma collection centers. In fiscal year 2020, Haemonetics
revenue under this Supply Agreement was $117
million, or 11.8% of total Company revenue, with a gross
margin similar to total Company adjusted gross margin. The Company
expects to incur an approximately $25
million one-time impairment relating to disposables
manufacturing equipment and an estimated $7
million in additional expenses in the fourth quarter of
fiscal 2021 in relation to this announcement. Haemonetics remains
committed to supporting CSL in other geographies and capacities,
representing approximately 1% of total Company revenue in fiscal
year 2020, and will continue to support CSL's plans to roll out
NexSys PCS® plasmapheresis devices in Europe under the recently executed agreement
with CSL.
"We have a long-standing relationship with CSL and while we are
disappointed by this decision we appreciate the advance notice,"
said Chris Simon, Haemonetics'
President and CEO. "We have taken a series of actions over the past
five years to strengthen Haemonetics' financial health and believe
that our organization has the agility to navigate these changes. We
are confident in our ability to continue to generate positive cash
flow as we pursue our strategies to deliver shareholder value."
Haemonetics continues to believe in the value proposition of its
NexSys PCS® and Persona® technologies,
supported by real world data, and remains committed to delivering
these technologies to its customers and pursuing additional
innovation to further improve plasma collection. The Company also
reaffirms its expectation of 8-10% average long term growth in the
U.S. source plasma collections market.
As previously noted, the current term of the Supply Agreement
expires on June 30, 2022. The
Supply Agreement also provides CSL the right to extend the
agreement until June 30, 2023 with
notice of renewal to be given no later than December 31, 2021.
The Company intends to provide additional details about this
announcement on its fourth quarter and fiscal year 2021 earnings
call in May 2021.
About Haemonetics
Haemonetics (NYSE: HAE) is a global
healthcare company dedicated to providing a suite of innovative
medical products and solutions for customers, to help them improve
patient care and reduce the cost of healthcare. Our technology
addresses important medical markets: blood and plasma component
collection, the surgical suite and hospital transfusion services.
To learn more about Haemonetics, visit www.haemonetics.com.
Cautionary Note Regarding Forward Looking
Statements
Any statements contained in this press release
that do not describe historical facts may constitute
forward-looking statements. Forward-looking statements in this
press release may include, without limitation, statements regarding
(i) CSL's notice of intent not to renew the Supply Agreement
between CSL and Haemonetics described above (the "Supply
Agreement"); (ii) the anticipated consequences of non-renewal of
the Supply Agreement, including the anticipated impairment charge
and expenses to be incurred, and the ability of Haemonetics to
respond to these changes; (iii) future positive cash flow and the
pursuit of strategies to deliver shareholder value; (iv) the
potential of Haemonetics' plasma products, including NexSys
PCS® and Persona®, (v) the anticipated
long-term growth in the U.S. source plasma collections market, and
(vi) the assumptions underlying or relating to any statement
described in points (i) to (v) above. Such forward-looking
statements are not meant to predict or guarantee actual results,
performance, events or circumstances and may not be realized
because they are based upon the Company's current projections,
plans, objectives, beliefs, expectations, estimates and assumptions
and are subject to a number of risks and uncertainties and other
influences.
Actual results and the timing of certain events and
circumstances may differ materially from those described by the
forward-looking statements as a result of these risks and
uncertainties. Factors that may influence or contribute to the
inaccuracy of the forward-looking statements or cause actual
results to differ materially from expected or desired results may
include, without limitation, the possibility that CSL may determine
to renew the Supply Agreement for additional periods; the impact of
the COVID-19 pandemic, including the scope and duration of the
outbreak and government actions and restrictive measures
implemented in response; the availability and demand for the
Company's products; the Company's ability to implement as planned
and realize estimated cost savings from the Operational Excellence
Program; the Company's ability to execute business continuity
plans; risks arising from the Company's acquisition of Cardiva,
including any failure to realize the anticipated benefits of the
transaction; technological advances in the medical field and
standards for transfusion medicine and the Company's ability to
successfully offer products that incorporate such advances and
standards; product quality; market acceptance; regulatory
uncertainties, including in the receipt or timing of regulatory
approvals; the effect of economic and political conditions; the
impact of competitive products and pricing; blood product
reimbursement policies and practices; and the effect of industry
consolidation as seen in the plasma market. These and other factors
are identified and described in more detail in the Company's
periodic reports and other filings with the U.S. Securities and
Exchange Commission. The Company does not undertake to update these
forward-looking statements.
Investor
Contact:
|
Media
Contact:
|
Olga Guyette,
Director-Investor Relations
|
Carla Burigatto, Vice
President-Communications
|
(781)
356-9763
|
(781)
348-7263
|
olga.guyette@haemonetics.com
|
carla.burigatto@haemonetics.com
|
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SOURCE Haemonetics Corporation