Haemonetics (NYSE:HAE) said the American Red Cross went with 1 of its rivals for some components of the whole blood collection kits the relief agency uses, meaning a $25 million hit to Haemonetics’ top line.
The Braintree, Mass.-based company said today that it will no longer supply 1.4 million in-line whole blood collection kits annually to the Red Cross. A deal to provide 400,000 of Haemonetics’ Acrodose platelet pooling devices each year is still in place, the company said. The lost revenue, about $25 million worth, translates into a roughly 15¢ hit to earnings, according to a press release.
Investors on Wall Street responded by sending HAE shares down 5.6% to $35.11 apiece today as of about 10:45 a.m.
"While we are disappointed that the American Red Cross has selected a competitor to meet their needs for whole blood collection products, we are not wavering in our resolve to bring differentiating technologies to this marketplace. These include our unique Solx red cell storage solution, as well as continued automation of the whole blood collection process," president & CEO Brian Concannon said in prepared remarks. "The American Red Cross remains an important customer for our apheresis and Acrodose products and we expect to continue to have an important long-term relationship with our nation’s largest blood collector. We look forward to demonstrating the value of our innovation and differentiation to all our customers."
Haemonetics said such supply deals typically contain provisions to allow customers to change vendors "should significant technological advances occur during the course of the agreement."
"It is Haemonetics’ intention to bring such advances to market," according to the release.
