grantg2
17 years ago
Kinetic Concepts 4Q profit rises
January 29, 2008 10:00 AM ET
SAN ANTONIO (AP) - Medical technology company Kinetic Concepts Inc. said Tuesday fourth-quarter profit jumped 30 percent, matching Wall Street expectations, on higher equipment rental and sales revenue for wound healing devices.
The company earned $66.5 million, or 92 cents per share, compared with $51.3 million, or 73 cents per share, during the same period a year prior. Revenue rose 17 percent to $433.6 million, from $371.5 million.
Analysts polled by Thomson Financial expected profit of 92 cents per share on revenue of $424.2 million.
For the full year, the company earned $237.1 million, or $3.31 per share, compared with $195.5 million, or $2.69 per share, in 2006. Revenue rose to $1.61 billion from $1.37 billion.
The company said the weak dollar added 4 percent to its revenue during the year.
Shares of Kinetic Concepts rose $1.40, or 2.9 percent, to $50.01 in morning trading. The stock has traded between $40.90 and $66.77 over the last 52 weeks.
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Overall it was a good year for the company... except for the stock price performance... KCI is a solid company IMO.
grantg2
17 years ago
KCI reorganizes and strengthens therapeutic surfaces business
February 14, 2008 12:49 PM ET
Kinetic Concepts Inc. (KCI) is refocusing its sales effort on its therapeutic surfaces business and has appointed Lynne Sly the global president.
Sly had previously been interim president of KCI's international operations.
As the head of the therapeutic surfaces business, which has been renamed Therapeutic Support Systems, she will lead a dedicated sales force in the United States that will focus solely on the company's therapeutic support systems that help manage pressure ulcers in patients as well as the sale of specialty hospital beds to patients who are either bariatric or have pulmonary complications.
Previously, KCI's sales team were responsible for selling both the company V.A.C. Therapy System and therapeutic surfaces. As a result, two sales teams will sell wound-care products like V.A.C. Therapy and the hospital beds and related overlays.
"The move to dedicated sales organizations in the U.S. market will benefit both businesses," KCI President and CEO Catherine Burzik says. "While our V.A.C. Therapy is clearly our leading growth business, Therapeutic Support Systems represents KCI's heritage."
Burzik says the new name also gives KCI the flexibility to add a broader range of products in this business in the future.
"In 2007, we saw very good top line growth in this business," says Sly. "During 2008, we will focus on improving profitability by focusing on new business opportunities globally in our wound care, bariatrics and critical care franchises while simultaneously driving operational efficiencies through our global manufacturing and service infrastructure."
San Antonio-based KCI (NYSE: KCI) is a global medical technology company.
grantg2
17 years ago
It's been a rocky start for the new year... but here is a hopeful advisor...
http://www.bloggingstocks.com/2007/12/24/best-stocks-for-2008-kinetic-concepts-kci/
Best Stocks for 2008: Kinetic Concepts (KCI) advances wound care
Posted Dec 24th 2007 3:30PM by Steven Halpern
Filed under: Newsletters, Stocks to Buy, Best Stocks for 2008
For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.
"My top speculative idea for 2008 is Kinetic Concepts (NYSE: KCI), which makes products for advanced wound care and other therapeutic applications," says quantitative analyst Vahan Janjigian, editor of The Forbes Growth Investor.
"KCI's therapeutic categories include advanced products for wound care and tissue repair, which accounted for 79% of first half 2007 revenues.
"The company's proprietary Vacuum Assisted Closure (VAC) technology uses negative pressure wound therapy (NPWT) to treat and promote healing in acute and chronic wounds caused by severe trauma, failed surgical closures, amputations, and serious pressure ulcers.
"VAC systems consist of a pump that provides a controlled level of negative pressure to the wound, foam dressings, occlusive drapes and specialized canisters that collect body fluids, filter odors, and facilitate the safe disposal of medical waste.
"Its prone therapy systems are designed to alleviate pulmonary and post-cardiac-arrest complications associated with immobility. Bariatric care products are used to support obese patients weighing up to 1,000 pounds. These products include specialty beds and patient lift/transfer systems.
"KCI also makes therapeutic surfaces such as beds and overlays that help relieve pressure and/or provide pulsating therapy to patients suffering from pressure sores, burns, and post-operative skin grafts.
"The company's VAC systems provide clear benefits over competing wound care alternatives, such as traditional
gauze dressings. They reduce skin pressure and shear, help provide moisture control, facilitate blood and lymphatic flow to the skin, and require less changing.
"Largely due to these competitive advantages, demand has been rising. Annualized revenue growth has averaged
35% over the past four years. However, growth slowed in recent years due to increased penetration, competition, and lower reimbursement rates due to changes in Medicare Part B.
"Nonetheless,VAC revenue growth rates actually improved in each of the past four quarters. KCI's aggressive R&D spending should help it maintain a competitive edge. Investment efforts have also focused on exploring expansion of VAC technology to other applications, such as tissue engineering and regeneration.
"We believe KCI's prospects are extremely promising. In particular, there is plenty of opportunity for further growth in Asian markets, where the company currently has a minimal level of penetration."
tsurge
17 years ago
FYI,
this is from Seeking Alpha....
I have experience with these products if anyone ever wants info from experienced user of wound therapy.....
Kinetic Concepts Likely to Lose Its Patents, and Its Value - Barron's
by SA Editor Eli Hoffmann
Despite technology that has revolutionized how hospitals treat chronic skin lesions, Barron's says Kinetic Concepts' (KCI) shares are dead money due to the likelihood of its inability to enforce its patents.
KCI produced $1.4 billion in revenue last year largely on the heels of its negative-pressure VACs that suction wounds, preventing bacteria from gathering, reducing swelling and promoting cell growth. Negative-pressure treatments are already used on 1/3 of chronic wounds in the U.S. and about 20% worldwide. KCI bills Medicare $1,700/month for each VAC system. With gross margins at near 50%, KCI's projected 2008 EPS of $3.30 means its shares trade at just 15x earnings, vs. 20x for similar companies, as investors fret the sustainability of its business.
Last year a federal judge ruled two rivals didn't infringe on its patents, subsequent to which British med-supply giant Smith & Nephew (SNN) bought one of them; it plans a Jan. 2008 launch of a VAC competitor. Another rival has produced a similar, cheaper product. It contends KCI's patents aren't valid due to pre-existing public-domain research, information which a previous head of KCI research has told courts the company was aware of. The U.S. Patent and Trademark Office has opened a re-examination into whether the Wake Forest patent bought by KCI should be invalidated as 'prior art.'
TSURGE
tsurge
17 years ago
Grantg2
Yes, the problems with PCs. My wife has a Mac for her work and that is what I am using right now, until I get my computer back from Geeksquad (they are cleaning it up again). My next computer will truly be a Mac if I can swing it...
I do not know much, but I do know, from DD that their CEO is from like Johnson &Johnson and it is now starting to act like a Pharma though it is an equipment company. there has been speculation/rumor among the hospital staff and wound nurses that they are going to reorganize the sales and management forces, USA and International. In what way I do not know, but I do know I do not see as many reps at the hospital like I used to see, whatever that means! Could it mean they are combining their sales forces and streamlining them??? do not know. It could also mean they are just paring back...or that I have been too busy at work to see them. I do know when we set up the Rotoprone beds, they were very helpful and they do have a wonderful support group and delivery system for their Rotoprone.
I agree they are a good company with good products (I know because I use them, and use them a lot!!!). I am worried that like many medical companies, they may get caught up in the "Big Pharma" mentality....
I am also wondering if they are either getting ready to buy a company or getting ready to be bought up by one!!! why would their CEO be from Johnson and Johnson? just a guess and only IMO, but one I can't shake as a strong possibility!
Would Johnson and Johnson be interested in buying them??? I emphasize, this is only my speculation and fantasy...johnson and johnson has bought up many product companines in the past....
They have a strong R&D and just came out with an "Info- VAC" a vaccuum device that can measure store pics of wounds and download the info to a medical record or print it out....my only concern is if it is worth the additional cost...most of us take pics of complex wounds now and download them to our computers (the office ones with the elect medical record) and do not have to worry about a proprietary machine and coming back to a patients room to get the info...it may be more of a benefit for outpatient and nursing homes....I have not used it yet, so I can only speculate!
TSURGE
grantg2
18 years ago
I cannot believe this company had NO board on The RagingBS site nor on iHub until I creaded it yesterday!
We are talking about a $60+ stock with a fantastic wound care system that is just beginning to gain the recognition it deserves... this is the key to much future growth for KCI!
"The advanced wound care systems incorporate the V.A.C. Therapy technology."
VAC stands for vacuum-assisted closure... KCI has pioneered and patented this technology. It is not "brand new" since it was first introduced in 1995 and has been growing at a good rate since 2001... compound annual rate of 25%.
Briefly the process inserts a type of non-absorbent foam into the wound and covers it with a transparent adhesive membrane. Then after the wound is covered, air is vacuumed out creating a "negative pressure" which acts to close the wound.
This process removes fluid & infectious material as it pulls the wound edges inward (together). The technique is effective for a variety of wounds ranging from those common to bed-ridden patients, those with diabetic ulcers, burns, skin grafts, surgical incisions. The benefits are therapeutic and economic...
the VAC care regimen hastens healing, lessens scarring, prevents infection, reduces the need for amputations in diabetic ulcer patients, and it really does reduce treatment costs!
The system has been approved for use with wounded military personnel on Medevac flights... which often leads to improved technologies and techniques. Also we are at the beginning demographic shift to larger numbers of elderly people in the population who have wound care concerns that are oft times more critical than a younger populace. The number of diabetics is also rapidly increasing.
All of this is such remarkable good news... the company has been around for some time and just keeps getting more and more attractive... a true leader in building product lines and growing shareholder value.
Of course, this is JMO... but I did work in the medical community for about 30 years...
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frenchee
17 years ago
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