October 8, 2010
Dear Medafor Partners:
I am writing to keep you apprised of some exciting new developments at Medafor. Perhaps of greatest importance is that, on September 20, 2010, the Court denied CryoLife’s motion for a preliminary injunction and, as we had hoped, we were able to terminate our exclusive distribution agreement with CryoLife.
With that decision, we moved quickly and ceased manufacturing of our MPH powder under the Hemostase™ name and began the process of filling all MPH orders directly under our original brand labeled Arista™ AH product.
While there may be some confusion as hospitals adjust, we believe that any such confusion will be short lived and that the end result will be a simpler supply chain that will better serve our customers. In fact, we have already received encouraging responses from a number our customers who appear quite relieved to be able to fill all of their MPH needs from a single and reliable source: Medafor and our representatives.
We are also pleased to tell you that, on a financial front, our business continues to perform well; our sales continue to grow, not only in our core markets, but also in the key specialty areas that we believe are ripe for growth. Indeed, with our progress to date, and with the CryoLife agreement terminated, we are optimistic that our entrepreneurial and dedicated U.S. sales force will be able to more effectively market the MPH product to cardiac and vascular customers, resulting in increased sales from those markets as well.
We are currently finalizing our financial results for the third quarter ended September 30, 2010, and when complete, we will share them with our shareholders.
Thank you for your continued support of Medafor!
Sincerely yours,
Gary Shope
Chief Executive Officer
shope@medafor.com