Abaxis Loses Schein Deal - TheStreet

Abaxis Loses Schein Deal

The stock drops 9%.
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Abaxis (ABAX) - Get Report fell 9% late Monday after ending a veterinary products distribution pact with Henry Schein (HSIC) - Get Report.

Union City, Calif.-based Abaxis said Henry Schein's distribution of Abaxis veterinary products accounted for14% of Abaxis' total business in fiscal 2006.

"This past March, Henry Schein acquired a regional distributor of a competing company, creating a level of uncertainty in the marketplace," Abaxis said. "In joint discussions it was determined to be in the best interest of both Abaxis and Henry Schein to dissolve the existing distribution agreement in order to clarify any misunderstanding that might exist in the veterinary market. We are pleased to be able to move forward with our plans to see to it that the Abaxis customer base continues to be served at the highest level."

Abaxis, which makes point-of-care blood-analysis systems, said it expects the loss of sales from Schein "will be principally offset with increased sales in our other domestic sectors, as well as increased international sales. We expect to meet our internal quarterly and annual financial targets."

Late Monday, Abaxis slid $1.51 to $16.21.