CHF Solutions (NASDAQ:CHFS) started the manufacturing transition of the Aquadex FlexFlow System to CHF Solutions’ facility in Minnesota.
As quoted in the press release:
The initial step, the transfer of the manufacturing assets, was completed last week. These manufacturing assets were acquired from Baxter as part of the Aquadex acquisition that was completed on August 5, 2016. The manufacturing assets had been retained by Baxter to manufacture and supply products to CHF Solutions under a Commercial Manufacturing and Supply Agreement that was signed at the time of the acquisition. The company expects to begin manufacturing its Aquadex FlexFlow system products in the fourth quarter of 2017.
“I am very excited to achieve this important step in the evolution of CHF Solutions,” said John Erb, Chairman and Chief Executive Officer of CHF Solutions. “Bringing the manufacturing of the Aquadex FlexFlow system products in-house will give us greater control and flexibility in managing our operations. Over time, we expect that this will result in improved gross margins as volumes and capacity utilization increases.”
Under the Commercial Manufacturing and Supply Agreement, CHF Solutions will continue to purchase raw materials and finished goods from an indirect subsidiary of Baxter until February 1, 2018.