I-Flow Announces Letter of Intent with B.Braun for Exclusive International Distribution of ON-Q Products

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Tue Mar 24, 2009 7:30am EDT

LAKE FOREST, Calif.--(Business Wire)--
I-Flow Corporation (NASDAQ:IFLO) announced today that the Company has entered
into a binding letter of intent for an exclusive international distribution
agreement with B. Braun Melsungen AG covering I-Flow's ON-Q PainBuster
Post-Operative Pain Relief System and ON-Q C-bloc Continuous Nerve Block System
(the latter will be private labeled as Easypump C-bloc RA for B. Braun). B.
Braun's distribution territory will be world-wide, excluding the U.S., Canada,
Mexico, Japan, the Middle East, Australia, New Zealand, Greece, South Africa and
China. The definitive agreement is expected to be in place by June 1, 2009. 

"I-Flow believes that this key partnership with B. Braun will significantly
increase the Company's international presence and revenue base," said Donald M.
Earhart, Chairman, President and CEO of I-Flow. "We look forward to working with
B. Braun in creating a mutually rewarding long-term relationship focused on the
growth of ON-Q in the world's markets." 

I-Flow and B. Braun have agreed that the initial term of the distribution
agreement will be until December 31, 2013, unless earlier terminated pursuant to
normal and customary provisions in the distribution agreement. B. Braun will not
distribute competing products during the term. 

B. Braun will have the opportunity to accept the assignment of one or more of
the Company's existing distribution arrangements in the territory covered by the
distribution agreement, and the Company will retain the right to continue to
supply products in the territory pursuant to existing distribution arrangements
(and any renewals or extensions thereof) that are not so assigned. 

About B. Braun

B. Braun supplies the global healthcare market with products for anesthesia,
intensive medicine, cardiology, extra corporeal blood treatment and surgery, as
well as services for hospitals, general practitioners and the homecare sector. 

About ON-Q

The ON-Q PainBuster Post-Operative Pain Relief System provides continuous
infusion of a local anesthetic directly into the patient's surgical site for
effective, non-narcotic post-operative pain relief for up to five days, getting
patients on their feet faster. It reduces patients' need for narcotics and
decreases the potential for breakthrough pain. It is also simple, yet elegant,
and requires little to no management or intervention by the patient or
caregiver. The device is completely portable and can be carried in a pouch or
attached to a patient's clothing. To learn more about the benefits of ON-Q visit
www.AskYourSurgeon.com. 

About I-Flow

I-Flow Corporation is improving surgical outcomes by designing, developing and
marketing technically advanced, low-cost drug delivery systems and innovative
surgical products for post-surgical pain relief and surgical site care. For more
information on I-Flow Corporation visit www.IFLO.com. 

"Safe Harbor" Statement

Statements by the Company in this press release and in other reports and
statements released by the Company are and will be forward-looking in nature and
express the Company's current opinions about trends and factors that may impact
future operating results. Statements that use words such as "may," "will,"
"should," "believes," "predicts," "estimates," "projects," "anticipates," or
"expects" or use similar expressions are intended to identify forward-looking
statements. Forward-looking statements are subject to material risks,
assumptions and uncertainties, which could cause actual results to differ
materially from those currently expected, and readers are cautioned not to place
undue reliance on these forward-looking statements. Except as required by law,
the Company undertakes no obligation to publish revised forward-looking
statements to reflect the occurrence of unanticipated or subsequent events.
Readers are also urged to carefully review and consider the various disclosures
made by the Company in this press release that seek to advise interested parties
of the risks and other factors that affect the Company's business. Interested
parties should also review the Company's reports on Forms 10-K, 10-Q and 8-K and
other reports that are periodically filed with the Securities and Exchange
Commission. The risks affecting the Company's business include, among others:
physician acceptance of infusion-based therapeutic regimens; implementation of
the Company's direct sales strategy; successful integration of the Company's
recent acquisition of AcryMed Incorporated and further development and
commercialization of AcryMed's technologies; potential inadequacy of insurance
to cover existing and future product liability claims; dependence on the
Company's suppliers and distributors; the Company's continuing compliance with
applicable laws and regulations, such as the Medicare Supplier Standards and
Food, Drug and Cosmetic Act, and Medicare's and the FDA's concurrence with
management's subjective judgment on compliance issues, including those related
to the recent FDA warning letter; the reimbursement system currently in place
and future changes to that system; product availability, acceptance and safety;
competition in the industry; technological changes; intellectual property
challenges and claims; economic and political conditions in foreign countries;
currency exchange rates; inadequacy of booked reserves or future impairment
expenses; and reliance on the success of the home health care industry. All
forward-looking statements, whether made in this press release or elsewhere,
should be considered in context with the various disclosures made by the Company
about its business.





Investor Contact:
Neil Berkman Associates
310-826-5051
info@BerkmanAssociates.com
or
Company Contact:
James R. Talevich, CFO
949-206-2700
www.IFLO.com

Copyright Business Wire 2009

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