- FinancialBuzz.com News Commentary
NEW YORK, Sept. 14, 2021 /PRNewswire/ --A hospital's need for medical equipment and supplies is been influenced by several major factors. These include an aging population, increasing occurrences of infectious diseases, methods such as frequent glove swapping and double gloving during procedures. In addition, due to SARS-COV2, most sectors of the economy had experienced a market decline, yet the pandemic has favored the hospital supplies market and added acceleration to the growth rate of the market. As a result, medical device manufacturers have increased their capacity to produce hospital equipment and better meet the patients' and hospitals' requirements. And, according to Market Data Forecast, Inc. the global hospital supplies market size is forecast to be worth USD 68.76 Billion by 2026, up from USD 39.36 Billion in 2021 while growing at a CAGR of 11.8% during the forecast period. OPTEC International, Inc. (OTC: OPTI), Retractable Technologies, Inc. (NYSE: RVP), Alpha Pro Tech, Ltd. (NYSE: APT), Allied Healthcare Products, Inc. (NASDAQ: AHPI), Chembio Diagnostics, Inc. (NASDAQ: CEMI)
The hospital medical equipment and supplies segment includes various devices, instruments, and medical consumables utilized in hospitals and healthcare facilities. The medical devices market in particular has shows major growth prospects due to new technological innovations. And now, in the modern technologically-driven healthcare landscape, the business model of medical device companies has evolved from device makers to problem solvers. Furthermore, medical device manufacturers are now leveraging the Internet of Things (IoT) and the cloud to improve clinical workflow, help physicians remotely monitor patients with real-time data and analytics solutions and utilize innovative processes to cut costs and improve outcomes.
OPTEC International, Inc. (OTC: OPTI) announced breaking news last week that, "the company has executed an LOI (Letter of Intent) for the acquisition of a West Coast, established medical supply company with over 25 years of operations in the medical supply industry. The company has also recently expanded supplies in the PPE sector in addition to the mainline medical supplies used across the world.
The company has also established purchasing agreements with US and overseas manufacturers in the medical sector. Annual revenues are currently approximately in the region of $10M, with significant possibilities for growth.
The long-term goal is to establish localized medical supply distribution centers, that can provide service to small and large clients with same day and next day deliveries. The company believes there is a huge demand and opportunity in the same day/next day deliveries that is currently underserved, similar to how Amazon created several years ago to service the retail industry.
The terms of the acquisition will be announced upon completion of the definitive agreement at the request of the seller. Closing of the transaction is expected to finalize in October 2021, or sooner if possible.
The addition of this medical supply company in addition to OPTEC's current subsidiaries adds growth and purchasing power to the company's expanding operations and at the same time adding noticeable additional annual revenue to the consolidated financials of Optec International.
Optec further today announced the appointment of a new in-house Social Media director based at the company's new Park Center, Location in Vista, California."
Retractable Technologies, Inc. (NYSE: RVP) designs, develops, manufactures, and markets safety syringes and other medical products for the healthcare industry in the United States, rest of North and South America, and internationally. Earlier this year the Company announced that it has entered into an amendment to the Technology Investment Agreement (originally awarded on July 1, 2020) with the U.S. government providing $27,365,232 in additional funding. The amendment calls for an increase in existing domestic manufacturing capabilities by a minimum of 50 percent in order to meet ongoing and future U.S. COVID-19 medical countermeasures demands. In order to satisfy this new objective, Retractable is directed to increase U.S. production of 1mL low dead-space safety syringes by installing new assembly lines and further expanding a portion of its facilities in Little Elm, Texas. The scheduled end date for the modification effort is January 31, 2022.
Alpha Pro Tech, Ltd. (NYSE: APT) together with its subsidiaries, develops, manufactures, and markets a range of disposable protective apparel, infection control, and building supply products in the United States and internationally. Reported last month financial results for the three and six months ended June 30, 2021. Lloyd Hoffman, President and Chief Executive Officer of Alpha Pro Tech, commented, "Through the second quarter, we witnessed the softening in demand for our N-95 particulate respirator face mask and face shield sales, consistent with our guidance provided in our first quarter earnings release. Sales for these products declined to be more in line with pre-pandemic quarterly levels and we currently expect similar trends going forward. There is a potential for mask sales to increase again as a result of the recent increased spread of Covid-19, primarily due to the Delta variant. However, due to the inherent uncertainty of the unprecedented and rapidly evolving situation, we are unable to predict with any certainty the likelihood of this on our future operations."
Allied Healthcare Products, Inc. (NASDAQ: AHPI) manufactures and markets respiratory products for use in the health care industry in a range of hospitals and alternate site settings worldwide. The company offers respiratory care/anesthesia products, including air compressors, calibration equipment, humidifiers, croup tents, and equipment dryers, as well as respiratory disposable products, such as oxygen tubing products, facemasks, cannulas, and ventilator circuit. In addition, the company offers emergency medical products that include respiratory/resuscitation products, such as demand resuscitation valves, portable resuscitation systems, bag masks and related products, emergency transport ventilators, precision oxygen regulators, minilators, multilators, and humidifiers; and trauma and patient handling products that include spine immobilization products, pneumatic anti-shock garments, and trauma burn kits.
Chembio Diagnostics, Inc. (NASDAQ: CEMI) together with its subsidiaries, develops, manufactures, and commercializes point-of-care (POC) diagnostic tests that are used to detect or diagnose diseases. The company offers tests for COVID-19, HIV and Syphilis, and Zika virus. It also develops tests for malaria, dengue, Hepatitis C, chikungunya, Chagas, ebola, leishmaniasis, lassa, marburg, leptospirosis, Rickettsia, and Burkholderia diseases. Last month the Company announced its launch of commercial distribution of an FDA Emergency Use Authorized, patent pending, rapid point-of-care COVID-19 antigen test for use in decentralized and traditional testing settings. Product inventory is on-hand and immediately available for shipment to Chembio customers across the United States. The SCoV-2 Ag Detect™ Rapid Test, manufactured by InBios International, Inc., is a rapid immunoassay test authorized for use in laboratories with a CLIA waiver certification. It provides results in 20 minutes from a nasal swab and requires no instrumentation. The test can be used for both patients who are suspected of COVID-19 by their healthcare provider within 5 days of symptom onset and for asymptomatic serial testing.
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