NEWS...QUADRANT HEALTHCOM INC.
Quadrant HealthCom Sells
TriGenesis Communications to MediMedia, USA
| For Release: May 13, 2002 |
The sale of TriGenesis—which in just over three years grew from a two-person operation to a full-service medical education company providing promotional, scientific and managed care products and services to a wide array of pharmaceutical clients—will allow Quadrant to fully focus on its core business of journal publishing.
Commenting on the sale, Stephen Stoneburn, president and CEO of Quadrant HealthCom stated "the rapid growth of TriGenesis—occurring during a period when we experienced severe contraction in the journal ad market—placed a great strain on our publishing business, due to the substantial upfront costs of medical education. The current interest in medical education gave us a window of opportunity to take advantage of what had been created at TriGenesis and, in the process, return Quadrant to the sound financial and strategic base required in this very difficult and competitive marketplace."
Morris Zukerman, Chairman of the Board of Directors commented: "At the same time, the transaction allows TriGenesis to take advantage of MediMedia’s size, scale and international resources to more rapidly expand its own business interests. We wish Rick Bauer, Jeff Hoffman and the TriGenesis team all the best in their new relationship with MediMedia."
Stoneburn also noted: "The current state of the pharmaceutical industry generally (declining profits, inadequate new product pipelines) and the journal sector in particular (where total 2002 expenditures will likely fall below $500 million, compared to more than $800 million in 1997) presents sobering realities to medical publishers." He continued, "going forward, we need to fully develop the potential residing in our current portfolio as well as look for new business opportunities to fuel further growth."
All P&T sales and editorial personnel were offered, and accepted, employment with MediMedia. Patricia Patasnick, Group Publisher at Quadrant HealthCom Inc. who was responsible for sales on P&T remains with the company and now has responsibilities for sales on The American Journal of Orthopedics®.
Contacts:
Stephen Stoneburn, (973) 701-2700
President and CEO
Quadrant HealthCom Inc.
26 Main Street, Chatham, NJ 07928-2402
Tel: (973) 701-8900 Fax: (973) 701-8894