NationsHealth Announces Sale of Discount Prescription Drug Card Business
September 06 2006 - 5:30PM
PR Newswire (US)
SUNRISE, Fla., Sept. 6 /PRNewswire-FirstCall/ -- NationsHealth,
Inc. (Nasdaq: NHRX; NHRXW; NHRXU) today announced that it has sold
its discount prescription drug card business for $6 million in
cash. NationsHealth will retain the exclusive right to offer and
provide diabetic and related supplies, services and products
related to the Medicare Part D prescription drug program and
certain other ancillary healthcare products and services to these
cardholders. "This transaction is another step towards tightening
the focus of NationsHealth," stated NationsHealth's Chief Executive
Officer, Glenn M. Parker. "With the widespread adoption of the
Medicare Part D program, we felt the discount prescription drug
card business was no longer core or complimentary to our Pharmacy
Products and Insurance Services segments. In addition, the capital
strengthens our balance sheet and will allow us to accelerate
certain operational initiatives and efficiencies that are expected
to improve our operating results and cash flow in the coming
quarters." About NationsHealth, Inc. NationsHealth improves the
delivery of healthcare to Medicare and managed care beneficiaries
by providing medical products and prescription related services.
NationsHealth has an agreement with CIGNA to offer their Medicare
Part D prescription drug plans nationally. In addition,
NationsHealth provides home delivery of diabetes and ostomy medical
products to over 102,000 patients. NationsHealth is also the
provider of diabetes supplies to over 12,000 Medicare beneficiaries
at over 1,100 Kmart pharmacies. For more information please visit
http://www.nationshealth.com/. This press release contains
forward-looking statements about NationsHealth, including
statements regarding management initiatives, efforts to streamline
operations, projections with respect to enrollment and market
opportunities for Part D and specialty pharmacy programs and future
financial results, none of which should be construed in any manner
as a guarantee that such results will in fact occur. In addition,
other written or oral statements that constitute forward-looking
statements may be made by us or on our behalf. Forward-looking
statements are statements that are not historical facts, and in
some cases may be identified by the words "anticipate," "project,"
"expect," "plan," "intend," "may," "should," "will," and similar
words or phrases. Such forward-looking statements, based upon the
current beliefs and expectations of NationsHealth's management, are
subject to risks and uncertainties, which could cause actual
results to differ from the forward-looking statements. The
following factors, among others, could cause actual results to
differ from those set forth in the forward-looking statements: our
ability to maintain our existing customer base; our customers'
desire to take advantage of our Part D and specialty pharmacy
services; uncertainty in our costs incurred in administering the
Part D program; changes in Medicare, Medicaid, Tricare, Champus and
any other state or national-based reimbursement program; changing
interpretations of generally accepted accounting principles;
outcomes of government reviews of NationsHealth's business
practices; inquiries and investigations and related litigation;
continued compliance with government regulations; legislation or
regulatory requirements or changes adversely affecting the
businesses in which NationsHealth is engaged; fluctuations in
customer demand; management of rapid growth; our ability to compete
effectively; timing and market acceptance of new products sold by
NationsHealth; general economic conditions; and geopolitical
events, regulatory changes and other risks and uncertainties
described in NationsHealth's Annual Report on Form 10-K for the
year ended December 31, 2005 and NationsHealth's other reports
filed with the Securities and Exchange Commission. The information
set forth herein should be read in light of such risks.
NationsHealth cautions investors not to place undue reliance on the
forward-looking statements contained herein. These statements speak
only as of the date of this press release and, except as required
by applicable law, NationsHealth assumes no obligation to update
the information contained herein. At NationsHealth: Timothy
Fairbanks, CFO 954-903-5018 At Rx Communications Group: Melody A.
Carey (investors) 917-322-2571 DATASOURCE: NationsHealth, Inc.
CONTACT: Timothy Fairbanks, CFO of NationsHealth, +1-954-903-5018;
or Investors, Melody A. Carey of Rx Communications Group,
+1-917-322-2571 Web site: http://www.nationshealth.com/
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