Companies in the News

Counsel distributes AHOM shares as dividend

Counsel Corporation (Toronto), which has a 26% interest in American HomePatient (AHOM; Brentwood, TN), said its board of directors declared a special dividend of .1578 of a share of AHOM for every share of Counsel owned. The dividend is payable on April 30 to Counsel shareholders of record as of April 19. Fractional shares will not be issued, said the company.

Counsel said in 4Q98 that it had adopted a plan to dispose of its home care business through the disposition of its AHOM shares. Because of the plan, Counsel has classified AHOM as a discontinued operation since FY98 end.

Counsel was unable to dispose of the shares during FY99 and, as an alternative, sought regulatory approval to distribute the shares as a dividend in kind. Regulatory approval has now been received, said Counsel.

Infu-Tech president/COO resigns

Infu-Tech (Carlstadt, NJ) President/COO Pritpal Virdee has resigned. Infu-Tech said a successor to Virdee will be announced shortly and that he anticipates that the individual hired will have a background consistent with Infu-Tech’s current shift away from a traditional business model to one centered around the Internet and wireless communication technologies.

Mallinckrodt’s Japan division to focus on home care

Mallinckrodt (St. Louis) said its Japanese division, Mallinckrodt Japan, plans to increase its home care operations by establishing alliances with Japanese companies and by increasing its market share in Japan for contrast media and respiratory devices. Marketing staff are to be increased from the current level of 200 people to 400 or 500, with the emphasis being on the home care sector, reported Chemical Business NewsBase:Japan Chemical Week. In FY99, the company said, the Japanese division had sales of Yen $15 billion, and the company is aiming to increase these over the next five years to Yen $40 billion per year.

Star sees 3rd consecutive profitable quarter

Star Multi Care Services (Huntington Station, NY) reported a 3Q00 ended Feb. 29 profit – it’s third consecutive quarter of profits, the company said. Star Multi Care reported a 3Q00 net income of $20,406, 1 cent per share, compared to a 3Q99 loss of $551,457, 32 cents per share.

The company said it saw revenues in 3Q00 of $9.5 million, a 17.8% decrease from 3Q99 revenues of $11.5 million. The drop is partly due to a reduction in authorization of service hours related to the New Jersey Medicaid Program, Star Multi Care said.