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EndoSonics to initiate direct sales
Intravascular ultrasound developer EndoSonics has reached an agreement in principle with the Cordis division of Johnson & Johnson to end that company's role as exclusive distributor of certain EndoSonics products in the U.S., Europe, the Middle East,
Intravascular ultrasound developer EndoSonics has reached an agreement in principle with the Cordis division of Johnson & Johnson to end that company's role as exclusive distributor of certain EndoSonics products in the U.S., Europe, the Middle East, and Africa. Assuming completion of a definitive agreement, EndoSonics will launch its own distribution strategy, which will consist of direct sales in some locations, as well as alliances with regional distributors, according to the Rancho Cordova, CA-based firm.
EndoSonics made the move to terminate the Cordis relationship in response to declines in orders from the company in recent quarters. Despite several initiatives by both companies to increase sales, the firms have mutually decided to end the distribution relationship, said Reinhard Warnking, EndoSonics president and CEO.
In other EndoSonics news, the company reported revenue of $9 million in its first quarter (end-March), an increase of 42.6% compared with the $6.3 million reported in the same period last year. The firm reported a net loss of $1.1 million, however, compared with a profit of $505,000 posted in the first quarter of 1997.
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