Advanced Medical Solutions Grp PLC
02 December 2004
For Immediate Release 2 December 2004
Advanced Medical Solutions Group plc
('AMS' or the 'Company')
Major breakthrough in NHS growth strategy
Inclusion on advanced woundcare dressings contract for NHS Hospitals in England
Winsford, UK: Advanced Medical Solutions (AIM: AMS), the global woundcare
technology company, is pleased to announce that it has been selected for
inclusion in a Framework Agreement for the provision of advanced woundcare
dressings to hospitals throughout England.
The agreement follows a process during which potential suppliers were short
listed, and is effective from December 2004 to September 2006 with an option to
extend to September 2008. It covers the full range of AMS' advanced woundcare
products, which will be sold under the ActivHeal(TM) brand by the Group's
MedLogic direct sales and marketing team.
Framework Agreements, established by the NHS Purchasing and Supply Agency (PASA)
which acts for the NHS Logistics Authority, are aimed at reducing costs in high
expenditure categories in the NHS. This follows on from the initiative taken by
the Commercial Directorate of the Department of Health under the Supply Chain
Excellence Programme (SCEP).
It is estimated that the NHS currently spends in excess of £100 million on
advanced woundcare dressings. These products are used in hospitals, nursing
homes and community care and are supplied through hospitals purchasing through
the NHS Logistics Authority, off-contract through distributors or by
prescription under the Drug Tariff. ActivHeal(TM) is a rational response to
cost pressures on woundcare budgets whereby savings made on standard products
for routine wounds allow funding of higher technology products for problematic
wounds. AMS' route to market strategy is to fulfil the demand for these
standard products by selling either directly, as in the UK, or via private label
partners, whilst continuing to sell its differentiated products through its
major woundcare partners under their leading brands.
As a UK based technology company, AMS is ideally placed to become a new
generation woundcare supplier through a balance of innovation and cost
management by integrating with the end user market. This allows significant
cost savings to be achieved by the NHS along the lines of the highly successful
generic pharmaceutical model.
Commenting on today's announcement, Dr. Don Evans, Chief Executive, said:
'I am delighted that we have been selected under this Framework Agreement,
which is a major step forward in strengthening our UK presence as part of
broadening our routes to market. Coupled with our previous Drug Tariff approval
announced in December 2003, it means that our ActivHealTM woundcare brand is now
available throughout the NHS in England. In conjunction with our market leading
medical adhesive products, this allows us to provide a continuum of care
covering acute wounds in A & E, surgical incisions in the operating theatre and
chronic wounds.'
For further information, please contact:
Advanced Medical Solutions Group plc Tel : +44 (0) 1606 545508
Don Evans, Chief Executive
Mary Tavener, Finance Director
www.admedsol.com
Buchanan Communications Tel: +44 (0) 20 7466 5000
Mark Court, Mary-Jane Johnson
Notes to Editors:
Advanced Medical Solutions is a leading company in the development and
manufacture of products for the $15 billion global woundcare market.
Founded in 1991 and currently quoted on AIM, Advanced Medical Solutions is
focused on the design, development and manufacture of innovative and
technologically advanced products for woundcare and other medical applications.
In-house natural and synthetic polymer technology is used to provide advanced
wound dressings based on the moist healing principle. AMS's resources ensure a
unique position as a vertically integrated 'one stop shop' to provide all
categories of moist wound healing products. The Company has the capability to
move from product design and development through to production and delivery
ready for distribution into customer markets.
The acquisition of MedLogic in 2002 has brought AMS products and technology in
cyanoacrylate based tissue adhesives that offer benefits over sutures and
staples for closing wounds sold direct to hospitals or through distributors.
AMS's technology and products currently serve the majority of the key global
markets with strategic partners including 3M, Novartis, Johnson & Johnson,
Molnlycke Healthcare, Coloplast, Smith + Nephew and Cardinal Health.
This information is provided by RNS
The company news service from the London Stock Exchange
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