SAN DIEGO, Jan. 31 CardioDynamics(Nasdaq: CDIC), the innovator and leader of Impedance Cardiography (ICG)technology, today announced a Strategic Alliance with Recorders and MedicareSystems, Ltd. (RMS), one of the largest manufacturers of medical equipment inIndia. Under the terms of the Distribution and Technology License Agreements,RMS will have rights to sell CardioDynamics manufactured BioZ(R) ICG productsin India and also will integrate BioZ(R) ICG technology into RMS' patientmonitoring products. CardioDynamics will receive product revenue for each ICGmonitor and a licensing fee for each BioZ(R) ICG kit purchased by RMS.
Michael K. Perry, Chief Executive Officer of CardioDynamics, stated, "Wehave made a concerted effort to diversify our business beyond the U.S.physician office market which is heavily dependent upon Medicare and privateinsurance reimbursement. These agreements with RMS are another step indriving our international growth initiatives and will build upon the recentlyannounced record 50% year-over-year quarterly growth in our Internationalbusiness. Through our technology licensing strategies, we are increasingglobal access to our BioZ(R) ICG technology and increasing the recurringrevenue content of our business."
India, whose population exceeds one billion people, has significantlyincreased its healthcare expenditures over the past decade to more than$34 billion or roughly 6% of GDP. The population of individuals at least 60years of age is projected to triple over the next 20 years to an estimated 190million people.
Suman Jolly, Managing Director of RMS, stated, "We are proud to partnerwith the world's premier ICG monitoring company and to bring innovativemedical technology to our healthcare system. The rebuilding of India'shealthcare infrastructure, combined with the emergence of medical tourism andtelemedicine, will drive strong demand for medical equipment. Additionally,the government is encouraging growth of the medical equipment market throughpolicies such as a reduction in import duties on medical equipment, higherdepreciation for life-saving medical equipment, and a number of other taxincentives."
India presently has one-fifth of the world average number of hospital bedsper million population and an estimated 450,000 additional beds will berequired by 2010 -- an investment estimated at over $25 billion.
Perry added, "We view this strategic alliance with RMS as beneficial ontwo major fronts. First, RMS has an extensive presence in the developing,healthcare market in India, which will be instrumental in helping to drivecontinued market adoption of our proprietary BioZ(R) ICG technology.Secondly, we believe RMS will be an excellent technology partner to utilizefor low cost development and manufacturing in the years ahead."
CardioDynamics (Nasdaq: CDIC), the ICG Company, is the innovator andleader of breakthrough medical technology called Impedance Cardiography (ICG).The Company develops, manufactures and markets noninvasive diagnostic andmonitoring technologies and electrodes. The Company's ICG Systems are beingused by physicians around the world to help battle the number one killer ofmen and women -- cardiovascular disease. Partners include GE Healthcare andPhilips Medical Systems. For additional information, please refer to thecompany's Web site at http://www.cdic.com.
About Recorders and Medicare Systems:
Recorders and Medicare Systems, Ltd., located in Chandigarh, India wasfounded in 1979 and is engaged in the development, manufacturing, marketingand selling of electro-medical equipment to the Indian healthcare marketplace.The company has installed its products in nearly every major medicalinstitution in India and has over 200 sales and service personnel based in 53branch offices throughout the country. Additional information can be fo