May 9, 2012
Asahi Kasei Medical Co., Ltd.
Asahi Kasei Medical and NxStage Medical, Inc. of the US have concluded an agreement to further strengthen their strategic alliance in the field of hemodialysis which began in May 2009. As part of the reinforcement of the strategic alliance, Asahi Kasei Medical has taken an ownership stake in NxStage Medical through the conversion of all outstanding principal and interest of a loan to NxStage Medical into newly issued shares.
In May 2009, Asahi Kasei Medical provided a four-year loan of US$40 million to NxStage Medical as part of their strategic alliance. All outstanding principal and interest of this loan has been converted to shares of NxStage Medical, as follows.
|1) Shares acquired:||Newly issued common shares|
|2) Value of shares:||Approximately US$45 million (approximately 4% of issued shares of NxStage Medical)|
|3) Conversion date:||May 4, 2012|
The strategic alliance between Asahi Kasei Medical and NxStage Medical established in May 2009 combines the complimentary strengths of the two partners in superior competitive technology, product development capability, and market presence, enabling both companies to accelerate their global growth strategy through mutual synergy. In addition to their financial alliance, the two companies have been advancing a project to expand capacity for assembly of dialyzers in Germany utilizing Asahi Kasei Medicalís polysulfone hollow-fiber membranes and NxStage Medicalís assembly technology. The start-up of joint manufacture of dialyzers is scheduled for this summer.
Asahi Kasei Medical and NxStage Medical will continue to examine additional opportunities to expand their strategic alliance and build on their established partnership.
Corporate profile of NxStage Medical, Inc.
|Head office:||Lawrence, Massachusetts, USA|
|Chief Executive Officer:||Jeffrey H. Burbank|
|Net sales:||US$217 million (FY2011)|
|Establishment:||1998 (NASDAQ listing in 2005)|
|Main business:||Manufacture and sale of home dialysis systems|
|Production sites:||Germany, Mexico, and Italy|