CHINDEX ANNOUNCES DISTRIBUTION AGREEMENT WITH BD
BETHESDA, MARYLAND (June 6, 2000) . . . . Chindex International, Inc. (NASDAQ: CHDX) (U.S.-China Industrial Exchange, Inc.), the leading independent American company providing Western healthcare products and services in the People's Republic of China, today announced it has signed an agreement with BD [Becton Dickinson Asia Limited, Hong Kong, a company wholly owned by Becton, Dickinson and Company, headquartered in New Jersey (NYSE: BDX)] to provide them with a full range of logistics services in China. Chindex began importing and distributing BD products under the agreement in May of this year.
BD is a leader in the design and worldwide delivery of indispensable healthcare devices, systems and services. In China, BD has achieved a substantial business supplying the hospital and laboratory market with a wide variety of medical devices and diagnostic systems. BD’s product portfolio ranges from basic hypodermic needles and syringes to infusion therapy systems to critical Care Systems to preanalytical solutions to consumer healthcare products to very sophisticated products in the biosciences field. Some of these products are produced locally from the BD manufacturing facility in China.
Mr. Chew Loong Yap, Country Manager for China and Hong Kong for BD said, "Our business in China has been growing rapidly. To sustain this growth, we have decided to focus on our areas of core competency, which are manufacturing, marketing, providing clinical education and sales management. We have decided to outsource the logistics function to experts in the field who, like us, have a strong customer focus. We looked for a reputable and cost effective distribution partner with a track record of success. Hands down, Chindex was our number one choice."
"We are delighted that BD has selected Chindex as its distribution partner," Chindex CEO Roberta Lipson commented in Beijing. "BD has joined a growing group of world-class multinational manufacturers who rely upon Chindex’s nearly 20 years of experience to bring products to their customers in China," she said.
"Chindex really separated itself from the pack in our eyes because of its ability to act as an integrated supply chain partner," stated Mr. Camon Sin, BD’s Country Controller for China and Hong Kong. He continued, "They can provide daily electronic information on nationwide inventories, sales, and account status, which is a huge task considering the wide geographical spread of China.
"We have spent years getting it right – how to run bonded and customs-cleared warehouses in China, how to convert local currency into foreign exchange and ensure our principals are paid fully and on time, how to control inventories, how to obtain and process information, and how to do all this in an affordable way," commented Chindex’s Vice President of Products Distribution, Jim Spear.
Mr. Richard Xing is General Manager for Chindex logistics. "We have distribution centers in Shanghai and Tianjin as well as warehouse facilities in Beijing and Guangzhou. We are already stocking nearly 1,500 different imported healthcare products for our principals," he said. "We sell and ship to over 800 different customer accounts, including hospitals, retail pharmacies, and local sub-distributors. BD will be a significant addition to our product and customer base."
Chindex is a leading American company in healthcare in the Greater Chinese marketplace including Hong Kong. It provides representative and distribution services to a number of major multinational companies including Acuson (diagnostic ultrasound scanners), Becton Dickinson (vascular access products), Johnson & Johnson (clinical chemistry analyzers and their consumables and supplies), Guidant (interventional cardiology products including stents, balloon catheters, and guide wires) and Tyco/Kendall Healthcare Products (including brands such as Davis & Geck, Sherwood, Kendall, Sheridan, and Curity). It also provides healthcare services through the operations of its private hospital corporation in China. With nearly twenty years of experience, approximately 330 employees, and operations in the United States, China and Hong Kong, the Chindex strategy is to expand its cross-cultural reach by providing leading edge technologies, quality products and services to Greater China's professional communities. Further company information may be found at the Chindex website, www.chindex.com.
BD is a medical technology company that manufactures and sells a broad range of supplies, devices and systems for use by health care professionals, medical research institutions, industry and the general public. For the fiscal year ended September 30, 1999, BD reported total revenues of $3.4 billion and net income of $276 million. In the Asia Pacific region, the company has 6 manufacturing plants, one of which is located in the Suzhou Industrial Park in China.
The statements in this press release that relate to future plans, events or performance are forward-looking statements that involve risks and uncertainties, including risks associated with uncertainties pertaining to the Company’s (i) performance goals, including successful conclusion of efforts to secure government-backed financing, (ii) future events and earnings, including revenues from the Company’s developmental businesses such as healthcare services, (iii) markets, including growth in demand in China for the Company’s products and services, and (iv) proposed new operations, including expansion of its healthcare services business. Actual results, events and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
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