RICHARD-ALLAN MEDICAL'S NEW PRESIDENT AND CEO IS UPJOHN'S WILLIAM PARFET

RICHARD-ALLAN MEDICAL'S NEW PRESIDENT AND CEO IS UPJOHN'S WILLIAM PARFET, effective Oct. 4. Parfet, a descendant of Upjohn's founder, recently announced that he was resigning his post as Upjohn vice chairman as of Sept. 30; he continues as a director of the $3.6 bil. pharmaceutical company. At Richard-Allan, Parfet, 46, replaces Rick Newhauser, who has held the president and CEO titles since 1972 and now will become chairman of the privately held company. Friends since college, Parfet and Newhauser will share in both the "management and ownership of the company," Richard-Allan said in a Sept. 28 release. Parfet's duties will include overseeing finance, information systems, sales and marketing and regulatory/legal affairs, while Newhauser will focus on design/engineering, purchasing, manufacturing and human resources. Parfet is joining Richard-Allan as the firm gears up for rapid growth due to its recent entry into the minimally invasive surgical device market. With revenues in the "$25 mil. range" for the year ended June 30, Richard-Allan's sales have been growing at about 15% per year. Since entering the less invasive surgical market internationally a few months ago, however, the company is "growing at an almost 50% annual rate" and anticipates that level of growth for the next three to five years. Minimally invasive devices currently marketed in the U.S. by the firm include the Reflex STR safety shielded trocar, introduced about one month ago, and electrosurgical probes. A 510(k) also has been cleared for the Reflex ECA endoclip applier, and the product is slated for introduction at the American College of Surgeons meeting the second week of October. 510(k)s are pending for a number of other devices including an internal stapling product, a stapling and dividing instrument, scissors, graspers, dissectors and additional trocars and electrosurgical products. The company says it is pricing all of its minimally invasive surgical products at a 30-40% discount to similar devices sold by U.S. Surgical and Ethicon, the current market leaders. Almost half of Richard-Allan's current sales, $10-12 mil., are generated from laboratory diagnostic products, principally systems for the collection and preparation of patient specimens. Skin staplers and other ligating devices bring in about $6 mil., while suture needles generate $4-5 mil. The company anticipates $10-12 mil. in sales from minimally invasive products this fiscal year and continuing growth of 10-15% in its other product lines. Founded in 1954, Richard-Allan is headquartered in Richland, Michigan and has manufacturing facilities in Kalamazoo, Michigan (where Upjohn is located) and Redditch, England. The company currently has 300 employees.