RICHMOND, Va., July 1 /PRNewswire-FirstCall/ -- Tredegar Corporation
(NYSE: TG) announced that it has sold or assigned substantially all of the
assets of Therics, Inc., a developer and marketer of orthobiologic products,
to a new company controlled and managed by Randall R. Theken. The new
company, Therics, LLC, is part of a family of orthopedic medical device
companies founded by Theken which includes Theken Spine, LLC. In addition to
receiving potential future payments on the sale of Therics' products, Tredegar
has retained a 17.5% equity interest in Therics, LLC and has received a 3.5%
interest in Theken Spine.
Norman A. Scher, Tredegar's president and chief executive officer said:
"This agreement eliminates annual operating losses of about $7 million for
Tredegar and creates the opportunity for potential long-term value from the
Therics technology. It also enables Therics to continue developing its
technology under the leadership of Randy Theken, who we believe has an
impressive track record over the last 10 years of creating and operating
Tredegar expects the transaction to result in a second-quarter charge of
approximately $10 million ($6.5 million or 17 cents per share after taxes).
The charge includes asset impairments of $6 million, lease-related losses of
$3 million, and severance and other transaction-related costs of $1 million.
For the last 12 months ended March 31, 2005, Therics had an operating loss of
The Theken family of companies (http://www.theken.com), based in Akron,
Ohio, includes Theken Spine, LLC, a designer, developer, manufacturer and
distributor of spinal fusion implants; Theken Disc, LLC, a research and
development company focused on motion preservation devices for the spine such
as a microelectronic artificial replacement spinal disc; and Theken
Orthopaedic, Inc., a medical device company that provides FDA testing services
to major medical device companies in need of FDA approval.
Based in Richmond, Va., Tredegar Corporation is a global manufacturer of
plastic films and aluminum extrusions.
FORWARD-LOOKING AND CAUTIONARY STATEMENTS
The words "believe," "hope," "expect," "are likely," and similar
expressions identify "forward-looking" statements within the meaning of the
"safe harbor" provisions of the Private Securities Litigation Reform Act of
1995. Such statements involve a number of risks and uncertainties that could
cause actual results to differ materially from those contained in the
forward-looking statements, including without limitation the following:
The existing orthobiologic product line that will be sold by Therics, LLC
is in the initial stages of commercialization. There can be no assurance that
any of these products can be brought to market successfully. The
commercialization of new future products will require significant research and
development, preclinical and clinical testing, and regulatory approvals. Our
ability to realize any profits from our relationship with Therics, LLC will
depend on its ability to internally develop preclinical, clinical, regulatory,
manufacturing and sales, distribution and marketing capabilities, or enter
into arrangements with third parties to provide those functions. The
inability to develop or contract for these capabilities would significantly
impair the entity's ability to develop and commercialize products and thus our
ability to realize any future profits.
We do not have day-to-day control over the activities of Therics, LLC.
Accordingly, our ability to receive any revenue from the product candidates
covered by these agreements will be dependent on the efforts of Therics, LLC.
Tredegar does not undertake to update any forward-looking statement made
in this press release to reflect any change in management's expectations or
any change in conditions, assumptions or circumstances on which such
statements are based.
SOURCE Tredegar Corporation
/CONTACT: Mitzi S. Reynolds of Tredegar Corporation, +1-804-330-1134,
+1-804-330-1177 (Fax), email@example.com, or Corporate
Communications, firstname.lastname@example.org; Randall R. Theken of Theken Spine, LLC,
/Web site: http://www.tredegar.com
CO: Tredegar Corporation; Therics, LLC; Theken Spine, LLC
ST: Virginia, Ohio
IN: CHM MNG HEA REA
SU: TNM ERP
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8375 07/01/2005 10:37 EDT http://www.prnewswire.com