Infusion sales / tenders, page-5

Not sure what that is based on...

Admedus Limited (ASX:AHZ) (the Company) today announces the conclusion of its relationship with Go Medical Industries Pty Ltd (Go Medical), a manufacturer of medical devices and accessories for the Infusion business. This change in our supplier arrangement is expected to have a 5.7% impact on top-line revenue for the financial year. It is important to note that this change relates only to the supply of smaller intravenous consumable medical products, and has no impact on Admedus’ distribution of infusion pumps to major hospitals. Under the leadership of its new Business Unit Head, Mr Glenn Gilchrist, the Company has been refreshing its long-term strategic plan for the Infusion business, which includes assessing its capabilities, organisational footprint, and product portfolio. The review identified certain products and pricing within the portfolio which needed to be more competitive. The Company engaged Go Medical on these topics, seeking a mutually beneficial outcome, but unfortunately were unable to reach agreement.Admedus is committed to working closely with existing customers and Go Medical as it transitions the business, and confirms it has adequate supply to meet demand during the 45-day completion period.Admedus CEO Wayne Paterson commented on today’s announcement: “The Company believes that this outcome is in the best interest of all stakeholders in the short, medium, and long-term. While this may have a short-term impact on the timing ofbreakeven earnings, the Company still aims to be profitable for 2019. We have a great team in place who consistently deliver above-target sales revenue and offer premium service to our valued customers.”