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Exhibit 99.1
NEWS RELEASE
December 4, 2000
Contacts: Paul S. Dunn, Investor Relations, or
Henry Blissenbach, Chairman and CEO,
at Chronimed Inc. (952) 979-3888
CHRONIMED ANNOUNCES SALE OF DIAGNOSTIC UNIT
PROCEEDS TO FINANCE OPERATIONS AND STRATEGIC GROWTH PLANS
MINNEAPOLIS, DECEMBER 4, 2000 -- CHRONIMED INC. (NASDAQ: CHMD), today announced
its sale of the assets of MEDgenesis Inc. to Medisys PLC (London: MDY.L) of
Woodbridge, Suffolk, England. MEDgenesis, which is Chronimed's Diagnostic
Product subsidiary, had been slated to be spun-off as a tax-free dividend to
shareholders but as a result of the sale, the spin-off will not occur. The sale
price of $40 million (US$) is comprised of approximately $30 million in cash and
$10 million in MDY common stock, subject to certain adjustments under the sale
agreement. Closing, which is subject to antitrust clearance and other
conditions, is expected to occur in 30 to 60 days.
Commenting on the sale, Henry F. Blissenbach, Chronimed's chairman and
chief executive officer said, "We are pleased to complete this divestiture as
part of our strategic focus on specialty pharmacy distribution. The decision to
sell MEDgenesis versus spinning it off was difficult because both options
presented unique opportunities to provide incremental value to shareholders.
However, the Board feels that this sale will provide maximum long-term benefit
to our shareholders. The proceeds from the sale of MEDgenesis will be used to
finance Chronimed's strategic growth plans and working capital needs."
Chronimed Inc. is a disease-focused drug distribution company serving
the prescription drug needs of people with selected chronic health conditions.
The Company distributes pharmaceuticals and provides specialized patient
management services nationwide for people with long-term chronic conditions such
as HIV/AIDS, organ transplant, and other diseases treated with oral and
injectable biotech medications. Chronimed works directly with patients,
physicians, payors, manufacturers, and wholesalers to improve clinical and
cost-of-care outcomes. Chronimed's web site address is www.chronimed.com.
As a cautionary note to investors, certain matters discussed in this
press release are forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such matters involve risks and
uncertainties that may cause actual results to differ materially, including the
following: changes in economic conditions; general competitive factors;
pressures on gross profit margins; the Company's ability to execute its sales
and marketing plans; changes in the status of managed care contracts; changes in
ownership; material litigation; ability to achieve the sale off of the Company's
Diagnostic Products business; and the risks described from time to time in the
Company's public reports filed with the SEC.
