Conceptus(R) Names Joseph G. Sharpe as Executive Vice President of Operations
Company Announces Plans to Establish Direct Manufacturing in Costa Rica
MOUNTAIN VIEW, Calif., Jan. 22, 2013 (GLOBE NEWSWIRE) -- Conceptus, Inc.
(Nasdaq:CPTS), developer of the Essure^® procedure, the leading surgery-free
permanent birth control method, announced today that it has appointed
operations executive Joseph G. Sharpe to the newly-created position of
Executive Vice President of Operations, effective immediately. Mr. Sharpe has
25 years of experience optimizing the operations of world-class medical device
companies. He will lead the Company's global operations and manufacturing
efforts and report directly to Conceptus President and Chief Executive
Officer, D. Keith Grossman.
Mr. Sharpe joins Conceptus from OptoVue Medical, where he served as the Senior
Vice President of Operations. In this role, Mr. Sharpe managed all aspects of
operations including manufacturing, supply chain, engineering, and the quality
assurance functions of the company, among others. Mr. Sharpe's experience also
includes eight years with Thoratec Corporation, from 1997 to 2005, where he
held the position of Vice President of Operations. During his time at
Thoratec, Mr. Sharpe was responsible for manufacturing, supply chain,
engineering, facilities, customer service and durable equipment repair.
Prior to his tenure at Thoratec Corporation, Mr. Sharpe held numerous
positions in operations with Baxter Healthcare Corporation from 1983 to 1997,
with increasing scale and responsibility culminating in his role as Director
of Operations from 1992 to 1997.Mr. Sharpe received a B.S. degree in
mechanical engineering from the University of Massachusetts at Lowell in 1981.
Costa Rica Manufacturing
After an extensive evaluation of potential manufacturing locations, Conceptus
has decided to internalize future manufacturing expansion of Essure with
operations in Costa Rica.The company believes that Costa Rica offers
favorable labor rates, low tax rates and an experienced pool of employees that
are skilled in medical device manufacturing. Conceptus Costa Rica S.R.L., the
company's subsidiary, expects to install a production line and begin
validation in the second half of 2013 in preparation for an FDA regulatory
submission in the first half of 2014.Conceptus expects that once the plant is
operational, product manufacturing costs will be significantly lower than
current outsourced production costs.
"Joe has a proven track record of leading large organizations with both
domestic and international manufacturing plants.We believe his experience
managing the operations of smaller companies experiencing rapid growth and
change will be invaluable at Conceptus as we ramp our internal manufacturing
capabilities in Costa Rica," said D. Keith Grossman, President and Chief
Executive Officer of Conceptus."Our Chief Financial Officer, Greg Lichtwardt,
has had responsibility for Operations at Conceptus for the past several years
and the company has benefited from his focus in this area and getting us to
this point of bringing manufacturing back in-house. I thank Greg for his
contributions," added Mr. Grossman.
Notification of Inducement Grant of a Stock Option and Restricted Stock Units
In connection with the hiring of Mr. Sharpe, the Company is making an
inducement grant of a stock option and restricted stock units to Mr. Sharpe.
These equity awards are being granted without stockholder approval pursuant to
NASDAQ Marketplace Rule 5635(c)(4) and have the following terms: (i) a
Non-Qualified Stock Option granted on January 21, 2013 for 25,000 shares of
the Company's common stock with an exercise price equal to the closing price
of the Company's common stock January 18, 2013, a seven year life and a
four-year vesting schedule structured with 12.5% of the grant vesting on July
21, 2013 and the remainder of the grant vesting monthly thereafter in equal
amounts over the next 42 months of continued service with the Company, and
(ii) 25,200 restricted stock units granted on January 22, 2013 with four-year
annual cliff vesting of 25% on each anniversary of January 21, 2013.
About the Essure^® Procedure
The Essure procedure, FDA approved since 2002, is the only surgery-free and
hormone-free permanent birth control method that can be performed in the
comfort of a physician's office in less than 10 minutes (average hysteroscopic
time) without the risks associated with general anesthesia or tubal ligation.
Soft, flexible inserts are placed in a woman's fallopian tubes through the
cervix without incisions.Over the next three months, the body forms a natural
barrier around and through the inserts to prevent sperm from reaching the
egg.Three months after the Essure procedure, an Essure Confirmation Test is
given to confirm that the inserts are in place and that the fallopian tubes
are blocked, verifying that the patient can rely on Essure for permanent birth
The Essure procedure is 99.83% effective based on five years of follow up with
zero pregnancies reported in clinical trials, making it the most effective
permanent birth control available.Essure's 10-year commercial data tracks
closely with its five-year clinical results, and Essure has been proven and
trusted by physicians since 2002.The Essure procedure is covered in the U.S.
by most public and private insurance plans and more than 690,000 women
worldwide have undergone the procedure.
About Conceptus^®, Inc.
Conceptus, Inc. is the leader in the development of innovative device-based
solutions in permanent birth control. The Company manufactures and markets the
Essure procedure.The Essure procedure is available in the United States,
Europe, Australia, New Zealand, Canada, Mexico, Central and South America and
the Middle East.
Please visit www.essure.com for more information on the Essure procedure.
Patients may call the Essure Information Center at 1-877-ESSURE-1 with
questions or to find a physician in their area.
The Conceptus, Inc. logo is available at
Forward Looking Statements
This press release includes forward-looking statements, the accuracy of which
is subject to known and unknown risks and uncertainties.These forward-looking
statements include, without limitation, discussions regarding the company's
ability to successfully and timely install, validate and obtain regulatory
approval of its in-house manufacturing operations in Costa Rica, and its
ability to significantly lower manufacturing product costs from current
outsourced production costs.These discussions and other forward-looking
statements included herein may differ significantly from actual results. Such
differences may be based upon factors such as changes in strategic planning
decisions by management, re-allocation of internal resources, changes in the
impact of domestic and global macroeconomic pressures, reimbursement decisions
by insurance companies and domestic and foreign governments, scientific
advances by third parties, risks of international operations, litigation
risks, and attempts to amend or repeal all or part of the Patient Protection
and Affordable Care Act of 2010 as amended, as well as those factors set forth
in the company's most recent Annual Report on Form 10-K and most recent
Quarterly Report on Form 10-Q, and other filings with the Securities and
Exchange Commission.These forward-looking statements speak only as to the
date on which the statements were made.The company undertakes no obligation
to update or revise publicly any forward-looking statements, whether as a
result of new information, future events, or otherwise.
2013 Conceptus, Inc. – All rights reserved. Conceptus and Essure are
trademarks or registered trademarks of Conceptus, Inc.
CONTACT: Investor and Public Relations Contact:
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