Sydney, Dec 14, 2005 AEST (ABN Newswire) - Ritract Limited (ASX: RTL) is pleased to announce that it has signed a Letter of Intent with the Verna Group to sell and distribute Ritract products in the United Kingdom and Ireland under the well-established Vernacare brand.
Since April 2005, Verna Group has been owned by Legal & General Ventures, a leading UK private equity firm, in April 2005. Both parties expect to finalize a sales, marketing and distribution agreement before the end of February 2006. Mrs Lesley Webster, Sales & Marketing Director of Vernacare Ltd said "We are very excited about working with Ritract. The prevalence of needlestick injuries in the United Kingdom supports the need for a high quality safety syringe and our research has convinced us that the Ritract Safety Syringe range has significant advantages over other products currently available or likely to be introduced. We believe that initial demand in the UK and Ireland will be approximately 3-5 million units in the clinical markets, growing to several times that in the next three or four years."
The Ritract Safety Syringe has generated unanimous strong positive reaction from both end users and the Purchasing and Supply Agency for the National Health Service (PASA), which has expressed interest in adding the Ritract Safety Syringe to its Logistics Catalogue and making it available to NHS Trusts and other facilities. Vernacare's national sales team of 11 representatives working in the acute care sector and specialising in developing Vernacare's position as the No1 Company for infection control products, will promote Ritract's products to hospitals and institutions throughout the United Kingdom and Ireland as part of the Vernacare brand. Additional representatives working in Verna Group's other Companies will support this sales team. Verna Group is confident that the Ritract Safety Syringe will help the company continue its successful growth story through extending its market leading position in hospital infection control, Karen Haslam, Chief Executive of Verna Group, commented "Verna Group has built up a strong foundation for growth over the past seven years. Our success is based on having a clear vision, a focused strategy and a committed workforce both in Bolton and at our other sites around the UK. We have forged long-term contracts and partnerships with the NHS Executive, hospitals around the UK and our suppliers."
Managing Director of Ritract Limited, Rupert Northcott said "Our partnership with Verna Group will enable Ritract to engage key customers in the United Kingdom and Ireland rapidly. Verna Group has very well established contacts with the national purchasing authority (PASA) and the NHS Trusts. Their experienced management team, highly trained sales people and an extensive product portfolio that compliments the Ritract Safety syringe range make it a good fit. Verna Group is an innovative and dynamic organization whose market knowledge and experience will enable us to move quickly to organise listing with the NHS, begin evaluation trials and secure sales."
ABOUT VERNA GROUP
Verna Group is a dynamic group of healthcare businesses employing 1,500 people with a turnover of approximately 64 million pounds. Verna Group's core business, Vernacare, is the UK market leader in the provision of medical pulp and infection control products to the acute sector, supplying 75% of UK hospitals. Verna's fast-growing Care Shop subsidiary is one of the largest healthcare mail order suppliers in the UK, distributing over 8,000 healthcare and mobility products to nursing homes nationwide. For further details about Verna Group, please visit their website www.vernagroup.com
Contact
Rupert Northcott
TEL: +61 2 8923 2511
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