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August 04, 2016 02:00 AM

Vystar closes Kiron division in Durham

Mike McNulty
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    DULUTH, Ga.—Vystar Corp. has closed its Kiron Sleep Lab L.L.C. division in Durham, N.C., to focus on the firm's core Vytex low protein natural rubber latex commodities and licensing business.

    Its decision takes it out of the sleep diagnostics business, which has experienced decreasing insurance reimbursement and revenue numbers since the beginning of 2015, according to Vystar CEO William Doyle.

    Vystar became involved with the sleep center industry in 2012 when it purchased SleepHealth L.L.C., a provider of sleep management services at 22 centers. By early 2014, hospitals had bought up numerous sleep centers, and SleepHealth and its operations were closed.

    “Only Kiron, which was a free standing sleep center, remained operating,” Doyle said. It had contracts in place to sell machinery related to sleep apnea, “So we kept it running.”

    However, he said, the firm that made the primary payments for the equipment cut the reimbursements in half, which made matters worse, he said. “Then the coding changed, and payments into the centers slowed by up to 60 days. The bottom line is it just didn't work.”

    Doyle noted that Vystar still has solid contacts within that sleep center industry for its Vytex foam bedding, used by numerous centers.

    In addition, “we have seen a much larger demand over the past six months for Vytex as a raw material in various industries as word spreads of its many superior properties,” he said.

    Vystar, based outside of Atlanta in Duluth, now will be able to concentrate on several new products and product lines that it is preparing to launch with major manufacturing partners, according to Doyle. “That part of our business is advancing quite well.”

    It is currently testing what he said were the only American-made medical exam gloves and interest in the product has come from multiple large potential customers.

    In addition, he added, the company is refining its new Vytex ultra protein lattices with reduced or no ammonia and nitrosamines.

    Working with manufacturers, Vystar continues to bring its biodegradable natural rubber latex to market for use in adhesives, balloons, condoms, other medical devices, foam mattresses, toppers and pillows.

    Vystar licenses several manufacturers to produce its Vytex NRL, primarily in Guatemala, Thailand and Vietnam.

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