Quipt Home Medical Announces Supply Contract with Cardinal Health Further Expanding Continuum of Care
Quipt Home Medical Corp. (NASDAQ:QIPT) has announced a contract with Cardinal Health for supplying disposable medical supplies nationwide. This partnership aims to enhance Quipt's distribution channels across its 94 locations, decrease costs, and facilitate the expansion of its healthcare services. The contract is expected to leverage existing national insurance agreements and provide synergies for future acquisitions, boosting Quipt's market presence. The CEO expressed optimism about the contract's potential to drive growth in 2022 and beyond.
- Execution of a contract with Cardinal Health for nationwide supply of disposable medical supplies.
- Enhances distribution channels across 94 operating locations.
- Expected to decrease costs and expand service offerings.
- Synergies anticipated from future acquisitions leveraging the contract.
- None.
Contract for Supply of Disposable Medical Supplies Bolsters Interconnected Healthcare Network During National Expansion
CINCINNATI, July 25, 2022 (GLOBE NEWSWIRE) -- Quipt Home Medical Corp. (“Quipt” or the “Company”) (NASDAQ:QIPT; TSXV:QIPT), a U.S. based leader in the home medical equipment industry, focused on end-to-end respiratory care, is very pleased to announce the execution of a contract with Cardinal Health at-Home, a business unit of Cardinal Health, Inc. (NYSE:CAH), wherein Quipt has agreed to offer to sell, and Cardinal has agreed to supply and distribute, disposable medical supplies nationwide. Headquartered in Dublin, Ohio, Cardinal Health, Inc. is a distributor of pharmaceuticals, a global manufacturer and distributor of medical and laboratory products, and a provider of performance and data solutions for healthcare facilities.
Management Commentary
“The execution of this contract with Cardinal Health for the supply of disposable medical supplies is an important milestone for Quipt, and we are thrilled to form this alliance during a period of significant growth. Cardinal will service our entire operating footprint, consisting of 94 locations across the country aimed at increasing distribution channels while decreasing costs,” said Greg Crawford, Chairman and CEO of Quipt. “Furthermore, this contract will provide us the ability to expand our continuum of care, produce meaningful cross selling opportunities and allow us to further leverage the national insurance contract recently announced. This contract with Cardinal will also assist us in expanding our presence in the states we serve giving us additional verticals to go after. Additionally, any new acquisitions, will benefit from being able to immediately leverage the contract at new locations across the country, providing further synergies with the expectation this contract will give us stronger buying power for disposable medical supplies. The contract with Cardinal, recent new national insurance contract, and deep acquisition pipeline have us extremely excited about the remainder of 2022 and beyond.”
ABOUT QUIPT HOME MEDICAL CORP.
The Company provides in-home monitoring and disease management services including end-to-end respiratory solutions for patients in the United States healthcare market. It seeks to continue to expand its offerings to include the management of several chronic disease states focusing on patients with heart or pulmonary disease, sleep disorders, reduced mobility, and other chronic health conditions. The primary business objective of the Company is to create shareholder value by offering a broader range of services to patients in need of in-home monitoring and chronic disease management. The Company’s organic growth strategy is to increase annual revenue per patient by offering multiple services to the same patient, consolidating the patient’s services, and making life easier for the patient.
ABOUT CARDINAL HEALTH
Cardinal Health is a distributor of pharmaceuticals, a global manufacturer and distributor of medical and laboratory products, and a provider of performance and data solutions for health care facilities. With 50 years in business, operations in more than 30 countries and approximately 44,000 employees globally, Cardinal Health is essential to care. Cardinal Health at-Home provides Home Medical Equipment and Home Health and Hospice teams with comprehensive solutions to better support their patients in the home.
Reader Advisories
There can be no assurance that any of the potential acquisitions in the Company’s pipeline or in negotiations will be completed as proposed or at all and no definitive agreements have been executed. Completion of any transaction will be subject to applicable director, shareholder, and regulatory approvals.
Unless otherwise specified, all dollar amounts in this press release are expressed in U.S. dollars.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
Certain statements contained in this press release constitute "forward-looking information" as such term is defined in applicable Canadian securities legislation. The words "may", "would", "could", "should", "potential", "will", "seek", "intend", "plan", "anticipate", "believe", "estimate", "expect", "outlook", and similar expressions as they relate to the Company, including: the national contract being meaningful as Quipt expands into new states, and broadens its operating footprint; Quipt expanding into new states and broadening its operating footprint over a much wider geography; and Quipt completing additional acquisitions; are intended to identify forward-looking information. All statements other than statements of historical fact may be forward-looking information. Such statements reflect the Company's current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties and assumptions. Many factors could cause the actual results, performance or achievements that may be expressed or implied by such forward-looking information to vary from those described herein should one or more of these risks or uncertainties materialize. Examples of such risk factors include, without limitation: credit; market (including equity, commodity, foreign exchange and interest rate); liquidity; operational (including technology and infrastructure); reputational; insurance; strategic; regulatory; legal; environmental; capital adequacy; the general business and economic conditions in the regions in which the Company operates; the ability of the Company to execute on key priorities, including the successful completion of acquisitions, business retention, and strategic plans and to attract, develop and retain key executives; difficulty integrating newly acquired businesses; the ability to implement business strategies and pursue business opportunities; low profit market segments; disruptions in or attacks (including cyber-attacks) on the Company's information technology, internet, network access or other voice or data communications systems or services; the evolution of various types of fraud or other criminal behavior to which the Company is exposed; the failure of third parties to comply with their obligations to the Company or its affiliates; the impact of new and changes to, or application of, current laws and regulations; decline of reimbursement rates; dependence on few payors; possible new drug discoveries; a novel business model; dependence on key suppliers; granting of permits and licenses in a highly regulated business; the overall difficult litigation environment, including in the U.S.; increased competition; changes in foreign currency rates; increased funding costs and market volatility due to market illiquidity and competition for funding; the availability of funds and resources to pursue operations; critical accounting estimates and changes to accounting standards, policies, and methods used by the Company; the occurrence of natural and unnatural catastrophic events and claims resulting from such events; and risks related to COVID-19 including various recommendations, orders and measures of governmental authorities to try to limit the pandemic, including travel restrictions, border closures, non-essential business closures, quarantines, self-isolations, shelters-in-place and social distancing, disruptions to markets, economic activity, financing, supply chains and sales channels, and a deterioration of general economic conditions including a possible national or global recession; as well as those risk factors discussed or referred to in the Company’s disclosure documents filed with United States Securities and Exchange Commission and available at www.sec.gov, and with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com. Should any factor affect the Company in an unexpected manner, or should assumptions underlying the forward-looking information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, the Company does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included in this press release is made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law.
For further information please visit our website at www.Quipthomemedical.com, or contact:
Cole Stevens
VP of Corporate Development
Quipt Home Medical Corp.
859-300-6455
cole.stevens@myquipt.com
Gregory Crawford
Chief Executive Officer
Quipt Home Medical Corp.
859-300-6455
investorinfo@myquipt.com
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