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ALLEGAN, Mich. — Perrigo has entered into an agreement with AgaMatrix Inc. to sell and distribute blood glucose monitors and test strips in the U.S. store-brand channel.
Perrigo said Thursday that as part of the exclusive agreement, it will sell and distribute certain products in the current AgaMatrix portfolio as well as certain future new products. Terms of the deal weren’t disclosed.
"Entering this adjacent product category has been high on our strategic priority list due to the fact that the growing diabetic community has an increasing demand for more quality, affordable health care options," Perrigo chairman and chief executive officer Joseph Papa said in a statement. "It is well-known that regular blood glucose testing is critical to effective diabetes management. What is also well-known is that the cost of testing strips and supplies often prevents many diabetics from testing as often as they should."
Perrigo said it will leverage its current store-brand retail channels to expand distribution of the new blood glucose meters and testing strips to consumers in early 2011. In addition, the company will continue to explore a full range of diabetes care products that extends beyond glucose monitoring.
According to Perrigo, an estimated $2.8 billion is spent annually on glucose monitoring meters and test strips in the United States.
"The Centers for Disease Control estimates that one in three Americans will develop diabetes in their lifetime," Papa stated. "Given the strong patient demand for high quality and value in this segment, we are very pleased to have completed this deal with AgaMatrix which, we believe, has industry-leading quality and technology."
