CHICAGO, June 26, 2015 (GLOBE NEWSWIRE) -- The Female Health Company (Nasdaq:FHCO) today announced that, through its distributor in the Republic of South Africa, Barrs Medical (Pty) Ltd., it has received an award from the most recent tender representing up to 11 million units.
"The award represents about 20% of the total tender," stated Karen King, President and CEO of the Female Health Company. "While the Company was awarded a similar percentage in the 2013 tender, it subsequently delivered volumes representing over 50% of the original total amount of the 2013 tender. We believe that the other suppliers under the previous tender were not able to deliver within the required time frames and, as a result, the actual volumes we shipped were much higher than our initial tender award. We are again prepared to support any required volumes from the South African Ministry of Health during this tender period. FHC has a proven track record of timely supplying a high quality product."
"I have noted in previous conference calls that competition entered the global public sector in 2012," continued King. "With this tender award, we now see further competitive and pricing pressures. Recognition of competition in the Company's primary markets played a key role in the development of the new business strategy that was announced in July 2014. The Company has progressed well towards the implementation of that two-part strategy, which is focused on driving Company growth by developing the FC2 consumer market in North America, Europe and other locations and by diversifying the product portfolio. The consumer effort is advancing, with a planned launch in the US around the end of calendar 2015. We are close to finalizing the brand and packaging for the consumer initiative and are now generating a promotion plan centered on a digital and social media awareness-generating campaign. As we continue to work on this effort, we become more confident that the female condom represents an excellent and much-needed non-hormonal contraceptive option for women and couples who may find the FC2 experience more pleasurable than the traditional non-hormonal option of male condoms. FC2 is the only female condom with FDA approval, a requirement for marketing in the US."
"On the diversification front, we are currently in discussions with a target that we believe would increase the growth potential of the Company and strategically support the Company's objectives by adding products in the female reproductive and intimate health area. I am pleased with the progress we are making with the new strategy on both fronts," concluded King.
About The Female Health Company
The Female Health Company, based in Chicago, Illinois, manufactures and markets the FC2 Female Condom® (FC2). Since the Company began distributing FC2 in 2007, it has been shipped to 144 countries. The Company owns certain worldwide rights to the FC2 Female Condom®, including patents that have been issued in a number of countries around the world. The patents cover the key aspects of FC2, including its overall design and manufacturing process. The FC2 Female Condom® is the only currently available female-controlled product approved by FDA that offers dual protection against sexually transmitted infections, including HIV/AIDS, and unintended pregnancy. The World Health Organization (WHO) has cleared FC2 for purchase by U.N. agencies.
Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995:
The statements in this release which are not historical facts are "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this release include statements relating to the timing and amount of orders under the Republic of South Africa tender award, the Company's ability to successfully complete an acquisition of a new product, technology or business and to successfully implement consumer sales and marketing initiatives for FC2, and the effect of such initiatives on the Company's business and results of operations. These statements are based upon the Company's current plans and strategies, and reflect the Company's current assessment of the risks and uncertainties related to its business, and are made as of the date of this release. The Company assumes no obligation to update any forward-looking statements contained in this release as a result of new information or future events, developments or circumstances. Such forward-looking statements are inherently subject to known and unknown risks and uncertainties. The Company's actual results and future developments could differ materially from the results or developments expressed in, or implied by, these forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, but are not limited to, the following: product demand and market acceptance; competition in the Company's markets and the risk of new competitors and new competitive product introductions; government contracting risks, including the appropriations process and funding priorities, potential bureaucratic delays in awarding contracts, process errors, politics or other pressures, and the risk that government tenders and contracts may be subject to cancellation, delay or restructuring; a governmental tender award indicates acceptance of the bidder's price rather than an order or guarantee of the purchase of any minimum number of units, and as a result government ministries or other public sector customers may order and purchase fewer units than the full maximum tender amount; the Company's reliance on its international partners in the consumer sector and on the level of spending on the female condom by country governments, global donors and other public health organizations in the global public sector; the economic and business environment and the impact of government pressures; risks involved in doing business on an international level, including currency risks, regulatory requirements, political risks, export restrictions and other trade barriers; the Company's production capacity, efficiency and supply constraints;the Company's ability to identify, successfully negotiate and complete suitable acquisitions or other strategic initiatives, the Company's ability to successfully integrate acquired businesses, technologies or products; and other risks detailed in the Company's press releases, shareholder communications and Securities and Exchange Commission filings, including the Company's Form 10-K for the year ended September 30, 2014. Actual events affecting the Company and the impact of such events on the Company's operations may vary from those currently anticipated.
For more information about the Female Health Company visit the Company's website at http://www.femalehealth.com and http://www.femalecondom.org. If you would like to be added to the Company's e-mail alert list, please send an e-mail to FHCInvestor@femalehealthcompany.com.
CONTACT: William R. Gargiulo, Jr. 231.526.1244 Michele Greco, CFO 312.595.9123
Source:The Female Health Company