SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report: February 4, 1999
ALLIED HEALTHCARE PRODUCTS, INC.
(Exact Name of Registrant as Specified in Charter)
Delaware 0-19266 23-1370721
(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
1720 Sublette Avenue
St. Louis, Missouri 63110
(Address of Principal Executive Offices) (Zip Code)
(314) 771-2400
(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS.
On February 4, 1999, the Registrant issued a news release announcing its
recall of all oxygen regulators sold under the Life Support Products (LSP) brand
to replace aluminum components in the units' high-pressure chambers with brass
components. The Registrant news release issued on February 3, 1999, attached
as Exhibit 1 hereto, is incorporated herein by reference and made a part hereof.
In addition, attached hereto as Exhibit 2 and incorporated herein by reference
and made a part hereof is a proposed advertisement that the Registrant intends
to place in certain national publications relating to such recall.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ALLIED HEALTHCARE PRODUCTS, INC.
Date: February 4, 1999 By: /s/ Uma Nandan Aggarwal
----------------------------
Name: Uma Nandan Aggarwal
Title: Chief Executive Officer
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EXHIBIT INDEX
Exhibit No. Description Page No.
- ------------ ---------------------------------------- ---------
1. News Release dated February 5, 1999 5
2. Proposed Advertisement 7
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Exhibit 1 - Press Release
FOR IMMEDIATE RELEASE
Contact: Tom Goyda or Beth Randolph
Shandwick International
(314) 436-6565
ALLIED HEALTHCARE PRODUCTS ANNOUNCE
RECALL OF LSP OXYGEN REGULATORS
COMPANY TO TAKE SECOND QUARTER CHARGE TO COVER ASSOCIATE COSTS
ST. LOUIS, February 4 1999-Allied Healthcare Products, Inc. (NASDAQ:AHPI) is
recalling all oxygen regulators sold under the Life Support Products (LSP) brand
to replace aluminum components in the units' high-pressure chambers with brass
components. The action is being taken in response to reports of fires and
explosions, the exact causes of which remain unknown.
The models subject to this recall consist of the LSP 106, LSP 270, LSP 280,
LSP 370, and LSP 735 series regulators. LSP Oxygen regulator users will be able
to have the parts replaced at pre-existing authorized service centers
nationwide.
This recall is being undertaken in cooperation with the United States Food
and Drug Administration to minimize the potential for fires and explosions, an
inherent risk with any high-pressure oxygen delivery system. Fires and
explosions can occur in the tanks, post valves and regulators of such systems
when virtually any type of contaminants - including hydrocarbons, metal shavings
or even dust particles - are present or introduced during handling and
maintenance, or when the tanks are refilled with gas.
In May, 1997, Allied conducted a recall to add a bronze sintered filter to
the LSP 270 Series regulator only. All of the LSP 270 Series regulators should
already be fitted with a sintered bronze filter. ALTHOUGH THE LSP 270 SERIES
REGULATOR MAY HAVE ALREADY BEEN RETROFITTED WITH THE SINTERED BRONZE FILTER, IT
IS ESSENTIAL THAT THE INTERNAL HIGH-PRESSURE PARTS BE REPLACED WITH BRASS
COMPONENTS TO ENHANCE SAFETY. All LSP regulators without a bronze sintered
filter and all regulators manufactured by LSP's predecessor corporation,
Robertshaw Controls Company, Inc., should be taken out of service IMMEDIATELY.
If the user is unable to determine if a sintered bronze filter has been
installed, Allied should be contacted for assistance in this determination.
Due to industry-wide fires and Allied's understanding that the FDA is
recommending the elimination of all aluminum in oxygen regulators, Allied has
voluntarily initiated the recall to replace all high-pressure parts with brass
parts. THIS IS STRICTLY AN INTERIM MEASURE which will enable the regulators to
be used during the period required to manufacture the new brass regulators.
Allied will issue another notification when the new brass regulators become
available.
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"This recall reflects Allied's strong commitment to manufacturing the
highest quality products and to the safety of all of our customers," said Uma
Nandan Aggarwal, Allied's Chief Executive Officer.
Allied is aggressively undertaking development and enhancement of its new
brass regulators series and will be making available a trade-in program once the
new brass regulators are available.
Users can reduce risk during use of any oxygen regulators, keeping in mind
the following precautions:
> The oxygen tank, post valve and regulator should be free of all
contaminants;
> The post valve should be open slowly whenever the unit is used to
minimize heat of rapid compression in the regulator.
> Users who refill their own oxygen cylinders should take extra care to
avoid the introductions of containments during the filling process.
Allied will have its authorized service centers equipped to handle the
recall within the next few weeks. Customers should receive a mailing with the
details about how to have their regulators serviced.
Allied also announced that the company expects to take a one-time, pre-tax
charge of approximately $1.5 million, or 12 cents per share after tax, for costs
associated with the recall. The charge will be recorded in the second quarter
of Allied's fiscal 1999, which ended December 31, 1998.
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Exhibit 2 - Form of Advertisement
HED: ATTENTION FIRE AND EMERGENCY SERVICES PERSONNEL
SUBHED: Recall of Life Support Products (LSP) Oxygen Regulators
BODY: Allied Healthcare Products, Inc. is recalling all oxygen regulators
sold under the Life Support Products (LSP) brand to replace aluminum
components in the units' high-pressure chambers with brass components.
This action is being taken in response to reports of fires and
explosions, the exact causes of which remain unknown.
LSP oxygen regulators users will be able to have the regulator
parts on their LSP 106, LSP 270, LSP 280, LSP 370 and LSP 735
series regulators replaced at authorized service centers
nationwide.
This recall is being undertaken in cooperation with the United
States Food and Drug Administration (FDA) to minimize the
potential for fires and explosions, an inherent risk with any
high-pressure oxygen delivery system.
In May 1997, Allied conducted a recall to add a sintered bronze
filter to the regulator. All regulators should already be fitted
with this sintered bronze filter. ANY REGULATORS WITHOUT A
SINTERED BRONZE FILTER AND ALL REGULATORS MANUFACTURED BY LSP'S
PREDECESSOR CORPORATION, ROBERTSHAW CONTROLS COMPANY, INC.,
SHOULD BE TAKEN OUT OF SERVICE IMMEDIATELY. If the regulator was
bought after May 1997 or retrofitted pursuant to the May 1997
recall, the regulator should already have the sintered bronze
filter installed.
This, in conjunction with present recall efforts, will result in
the replacement of all aluminum high-pressure parts with brass
parts. This interim measure will enable the regulators to be used
during the period required to manufacture non-aluminum
regulators. This information has been provided to the FDA. It is
Allied's understanding that the FDA is recommending the
elimination of all aluminum in oxygen regulators.
Allied will be making available a trade-in program on its new
brass regulators once this transition is complete.
Users can reduce risk during use of any oxygen regulator by
keeping in mind the following precautions:
The oxygen tank, cylinder valve and regulator should be free
of all contaminants.
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The cylinder valve should be opened slowly whenever the unit
is used to minimize heat of rapid compression in the
regulator.
Users who refill their own oxygen cylinders should take
extra care to avoid the introductions of contaminants during
the filling process.
Allied will have its authorized service centers equipped to
handle the recall within the next few weeks. Customers should
receive a mailing with the details about how to have their
regulators serviced. Additional information concerning the new
brass regulators will shortly be forthcoming.
Contact: Recall Coordinator
Telephone: (800) 216-4624 (Monday through Friday between the hours of 8:00
a.m. and 5:00 p.m. CST)
Fax: (888) 231-5273
Mail: LSP Regulator Recall Center
Allied Healthcare Products, Inc.
1720 Sublette Blvd.
St. Louis, MO 63110
E-mail: [email protected]
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