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Medical equipment industry

Chronimed Inc. Adjusts Revenue Projections due to Blood Glucose Monitoring Reagent Strip Shipments

Strategic Insights

— 1 min read

Chronimed Inc., a health care company specializing in the unique needs of patients with chronic diseases, has announced that the shipment of its Quick Check blood glucose monitoring reagent strip will not resume in May as previously anticipated. This delay is attributed to the manufacturer's Diagnostic Solutions, Inc., requiring an additional six weeks to complete its manufacturing process reengineering efforts. As a result, Chronimed has reduced its revenue projections for its 4th fiscal quarter by approximately $2 million and its earnings per share by 3 cents. Despite the delay, the company remains confident in the improved accuracy, stability, and quality of the resulting Quick Check product.

Key Takeaways:

  • Chronimed Inc. delays the shipment of its Quick Check blood glucose monitoring reagent strip due to the manufacturer's reengineering efforts.
  • The delay requires an additional six weeks, impacting Chronimed's 4th fiscal quarter revenue projections by approximately $2 million.
  • Earnings per share are reduced by 3 cents as a result of the revenue projection adjustment.
  • The improved accuracy, stability, and quality of the Quick Check product are considered justified despite the delay.
  • Diagnostic Solutions, Inc., the manufacturer, asserts a 90% confidence level in resuming shipments in July.
  • The delay affects Chronimed's direct sales to patients, managed care companies, and case management companies nationwide.

Statistics:

  • Chronimed reduces revenue projections for its 4th fiscal quarter by approximately $2 million.
  • Earnings per share are reduced by 3 cents as a result of the revenue projection adjustment.
  • Diagnostic Solutions, Inc., requires an additional six weeks to complete its manufacturing process reengineering efforts.
  • The confidence level in resuming shipments in July exceeds 90% according to Diagnostic Solutions, Inc.
  • Chronimed specializes in developing, marketing, and distributing pharmaceuticals, general medical products, and patient education materials to patients and managed care companies nationwide.

Sources:

  • PRNewswire, May 22
  • Chronimed Inc., Nasdaq: CHMD
  • Diagnostic Solutions, Inc., Irvine, Calif.
  • CHRONIMED's President and Chief Executive Officer, Maurice R. Taylor, II
  • Contact: Maurice R. Taylor, II or Norman A. Cocke of CHRONIMED, 612-541-0239

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