Fortune Recognizes Female Health Company as One of America's Fastest-Growing Small Companies
July 07 2009 - 8:30AM
PR Newswire (US)
FHC Ranks 8th on Magazine's List of the top 100 Fastest-Growing
Small Businesses Company Is Rated First among Healthcare Companies,
and First among Six Illinois Businesses CHICAGO, July 7
/PRNewswire-FirstCall/ -- The Female Health Company (FHC)
(Nasdaq-CM: FHCO) today announced that Fortune has ranked FHC
eighth among the top 100 fastest-growing publicly traded small
companies in America. Fortune's annual top-100 list rates companies
with revenues of less than $200 million according to their
annualized revenue growth and their total return to investors.
"We're thrilled that Fortune has recognized the core strengths and
growth potential of Female Health Company's business model," said
FHC President and CEO, O.B. Parrish. "We believe that we have built
a strong private company dedicated to achieving an essential social
mission - providing women with access to the female condom, the
only safe and effective method of HIV prevention that women can
initiate and control." Fortune's ninth-annual review of America's
top-100 small businesses placed FHC first among emerging healthcare
companies, and it ranked Female Health first among small publicly
traded companies based in Illinois. The magazine also profiles FHC
in a special feature article that highlights the company's recent
success in developing a lower-cost, second-generation female condom
(the FC2 Female Condom(R)) and winning regulatory approval for FC2
from the U.S. Food and Drug Administration (FDA) and clearance by
the World Health Organization (WHO) for purchase by U.N. agencies.
Reporter Elaine Appleton notes that sizable increases in U.S.
funding for AIDS prevention under the President's Emergency Plan
for AIDS Relief (PEPFAR), and FC2's distinction as the only
woman-initiated HIV prevention method currently available, have
helped to stimulate rapid growth in FC2 sales. In 2008, FHC sold
34.7 million female condom units in 93 countries, a 34 percent
increase in sales from 2007. Company revenues also rose 33 percent
to $25.6 million, while net income grew 215 percent - to $4.8
million. "FHC has made great progress over the past three years in
achieving profitability and improving its margins with the
development and introduction of the FC2 Female Condom," said FHC
CFO Donna Felch. "FHC has succeeded in significantly reducing the
female condom's cost through the introduction of a new material and
a different manufacturing process. In doing so, FHC has achieved
sustained growth. This is a win-win for women and the company." FHC
has also achieved success by building effective public/private
partnerships with the United States Agency for International
Development (USAID), the United Nations Population Fund (UNFPA) and
a wide array of bilateral aid agencies, private foundations, and
international NGOs committed to advancing women's access to HIV
prevention. The company invests in providing technical support to
public sector health programs on how to introduce the female condom
and how to educate women on discussing HIV prevention with their
husbands and partners. "For more than 20 years, we have believed in
the power of public/private partnership and in the principle of
doing well by doing good," said FHC's Senior Strategic Advisor and
former president, Dr. Mary Ann Leeper. "We are excited that years
of effort in making the female condom affordable to prevention
programs and accessible to women is starting to show measurable
results - results that can save lives." FHC has attracted the
attention of socially responsible investment (SRI) funds such as
the Appleseed Fund in recent years. Adam Strauss, a portfolio
manager of the Appleseed Fund, notes that FHC meets Appleseed's two
key criteria: value for investors and social sustainability. "From
a value standpoint, we thought that FHC's stock price was extremely
low relative to its revenue growth, its increased margins, and the
company's low capital requirements," said Strauss. "From a social
standpoint, FHC is in the business of saving lives, and you don't
get more socially responsible than that. Their product reduces HIV
transmission rates, according to studies that examine what happens
when women have another HIV prevention option." "Female Health has
been a quiet grower, with few investors aware of its significant
revenue and earnings growth rates until only recently, when it was
added to both the NASDAQ and RUSSELL," said David Sandberg, a
portfolio manager with Red Oak Partners. "We look forward to an
exciting future driven off recent FDA approval for their higher
margin/lower priced FC2 product, a more than doubling of FC2
production capacity in Malaysia, continued growth in FHC's
partnership with a major Indian condom maker, and continued market
acceptance of the FC2 product. It's a perfect storm and we remain a
happy shareholder." About The Female Health Company The Female
Health Company (FHC), headquartered in Chicago, IL, is the maker of
the FC Female Condom (FC1 and FC2), a revolutionary option offering
women dual protection against both sexually transmitted diseases,
including HIV/AIDS, and unintended pregnancy. FHC was created as a
worldwide company in February 1996 with the purchase of Chartex
Resources Ltd., the holder of exclusive worldwide rights to FC1.
The Company holds exclusive product and technology patents for FC1
in the United States, Australia, Brazil, Canada, France, Germany,
Italy, Spain, the United Kingdom, the People's Republic of China,
South Korea and Japan. FC2 patents have been granted in Australia
and South Africa and are pending in various other countries. FHC is
the sole manufacturer and marketer of the FC1 and FC2 female
condoms in the world. The Female Health Company and its partners
currently market the Female Condom under FCFemale Condom(R), FC2
Female Condom(R), Reality(R), Femidom(R), Femy(R), and Care(R).
"Safe Harbor" statement under the Private Securities Litigation
Reform Action of 1995: The statements in this release which are not
historical facts are forward-looking statements based upon the
Company's current plans and strategies, and reflect the Company's
current assessment of the risks and uncertainties related to its
business, including such things as product demand and market
acceptance; the economic and business environment and the impact of
government pressures; currency risks; capacity; efficiency and
supply constraints; and other risks detailed in the Company's press
releases, shareholder communications and Securities and Exchange
Commission filings. Actual events affecting the Company and the
impact of such events on the Company's operations may vary from
those currently anticipated. DATASOURCE: Female Health Company
CONTACT: Media Contacts - Bryan Callahan, +1-202-729-4255 or Ashley
Smith, +1-202-729-4269; Investor Contacts - O.B. Parrish,
+1-312-595-9123, Donna Felch, +1-312-595-9123, William R. Gargiulo,
Jr., +1-231-526-1244, all for The Female Health Company
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