Spoke to Keith TASKE yesterday. This one to bounce soon. Newsletter on the way to shareholders this week. ROAD TRIP SHORTLY FOR BROKERS. FDA APPROVAL NOT FAR OFF.
Occupational & Medical Innovations
Occupational & Medical Innovations is a multi-product company that, compared with most of its peers, has spent more time on product development and less on public relations. Management has taken a measured approach to expanding the company, yet it could be argued that the company's range of products, advanced stage of regulatory approvals and global recognition, along with its strong alliances, position it better than most of its competitors to gain a first-mover advantage.
The company's retractable syringe has passed the TGA approval stage, and the final step in terms of launching the product globally is to gain US Food and Drug Administration (FDA) approval. OMI's joint managing director, Keith Taske, anticipates FDA approval early in 2005.
Based on the range of products on offer, the user-friendliness and degree of safety offered by the company's syringe may prove to be a competitive advantage in gaining acceptance from the medical profession, a factor crucial to turning products into sales.
Early indications are positive, as a heads of agreement has been signed with the affiliate of one of the world's largest medical device and operations suppliers, Terumo Corporation. The Japanese company has 83 years of industry experience, operations in 150 countries and annual sales of $US2.45 billion. China Medical Group, OMI's exclusive syringe manufacturer, will also distribute the syringe within China, which accounts for about 25% of the global non-safe syringe market.
Occupational & Medical Innovations appears to have all bases covered in bringing its syringe to market, and probably the experience gained in taking its safety scalpel from prototype to revenue-driver has given the company an edge over some of its peers.
This augurs well for its future, as the company has a number of innovative products that have the potential to provide sustained earnings growth and some insulation against the volatility likely to surround the syringe industry as competition increases.
Recent news that the company anticipates revenue of $5 million and a break-even year in financial 2005 is a good sign, particularly in light of the fact that little upside could be expected from syringe sales before financial 2006. Management has noted that sales of its scalpel, syringe and valve could generate strong growth in 2006.
Good luck all
ICU Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
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