Atlanta, GA – Scibility Media – 11/06/2014.
This article discusses three medical technology/instruments companies: Lakeland Industries, Inc. (NASDAQ:LAKE), Nanosphere Inc. (NASDAQ:NSPH), Medical Alarm Concepts Holding, Inc. (OTCPINK:MDHI)
Fear of Ebola virus spreading in the U.S after two infections has had a massive impact on biotech stocks with most of them recording impressive runs. October has especially been exciting for Lakeland Industries, Inc. (NASDAQ:LAKE)’s investors who have seen their investments in the company soar by 75%. While Nanosphere, Inc. (NASDAQ:NSPH), on the other hand, has not had the best of runs in contrast and is currently down by 20% for the month.
Lakeland Impressive Run
Lakeland Industries, Inc. (NASDAQ:LAKE) is a manufacturer of protective garment used for shielding people from fire chemicals and contagious viruses such as Ebola. The company’s impressive run in the month came on the heels of the first Ebola death in the U.S. of Eric Thomas Duncan. Spread of the virus to two other nurses caused the industry to react as there was a belief the disease could spread even further on admission by the CDC.
It has not been all straight for Lakeland in the biotech space as a mixture of news from the Centre for Disease Control and the WHO have necessitated up and down movements in the market. Lakeland Industries, Inc. (NASDAQ:LAKE) was to be a major beneficiary of the virus spreading as its protective apparel could have enjoyed impressive demand from health care institutions.
The company’s president and CEO, Christopher Ryan, had stated that the company was more than ready to meet any demand for protective garments had the virus spread. Lakeland had already increased manufacturing capacity of its hazmat suits that were being used by health workers in handling patients infected with the virus.
Nanosphere Poor Run
Nanosphere, Inc. (NASDAQ:NSPH), on the other hand, has maintained a poor run amidst a mixture of news of the Ebola virus. The stock is already down by 38.63% for the week and 65.66% for the quarter, high margins that are second to none. The downward trend has mostly been due to a slow start with its Verigene Enteric Pathogens Nucleic Acids Test for Ebola.
Investor’s optimism seems to have been shaken about Nanosphere prospects even after receiving FDA approval for the Nucleic Acid test that was to be used to detect and diagnose Ebola virus in patients, at an early stage. The pricing of 40,000,000 shares in public offering has still not triggered a stop in the downward trend for Nanosphere, Inc. (NASDAQ:NSPH). The offering will be carried at a price of $0.50 a share as the company looks to raise funds to sustain its long-term operations. Underwriters have already been given the option of purchasing an additional 6,000,000 shares.
Financial constraints have always been the main challenge for most of the biotech companies in the fight against Ebola of which Nanosphere is no exceptions. Inadequate funds have rendered it difficult for the companies to ramp up production for the various cures and vaccines currently in the testing phase. Nanosphere, Inc. (NASDAQ:NSPH) has resorted to offering its shares in a public offering as it seeks to bolster its operating capital.
The state department is reported to have placed an order of 160,000 protective suits from Lakeland as a countermeasure should there have been a massive spread of the virus. Pharmaceutical companies developing vaccines and cures for the deadly virus have also been on a resurgence this year, in response to the virus spreading away from Africa.
Now the big question which investor community would be thinking of would be is Medical Alarm Concepts Holdings Inc. (OTCMKTS:MDHI)’s patented technology MediPendant which allows users to communicate with emergency personnel whenever they need help will pick itself up after torrid performance in last few years? The company has shed most of its toxic debt that nearly sunk it into collapse. The company has successfully converted most of its debts into equity, consequently acquiring a new credit line that it hopes will be enough to cater for future development plans.
Improvement in Gross Margins
Re-organization of the company finances has already had its fair amount of success seen by the company reporting a 71% gross margin for the quarter ending March 31, 2014. That was an improvement from a gross margin of 41% posted for the same quarter ending March 31, 2013. Growth in gross profit and Gross margin justifies Media Alarm Concepts Holding push to pursue other synergistic opportunities, as well as expansion through acquisition.
Medical Alarm Concepts Holdings Inc. (OTCMKTS:MDHI) now remains focused on marketing and distributing its patented personal emergency alarm MediPendant. Sales for the service continue to pick up at the back of key international partnerships, as well as distribution agreements in Denmark and Ireland. Medical Alarm Concepts Holdings Inc. (OTCMKTS:MDHI) has already signed a joint venture distribution agreement with China-based JTT-EMS LTD as it hopes to distribute MediPendant further into Asian markets.
Expansion of Distribution Channels
MediPendant’s sales also continue to be impacted by a distribution deal signed with Costco Wholesale Corporation (NASDAQ:COST) in 2011 while new promotions are expected to start in Q4 of 2014 and early 2015. Medical Alarm Concepts Holdings Inc. (OTCMKTS:MDHI) CEO, Ronnie Adams, has already confirmed that the company is seeking to expand its distribution channels for MediPendant through existing and other partnerships.
With the aging population increasing globally, Gartner Inc. expects MediPendant to register tremendous growth especially in Europe, the U.S and China. Gartner expects the aging population to be a key driver for technology and innovation by 2050 with innovation such as MediPendant expected to benefit a great deal.
The three mentioned medical technology/instruments companies above are of course just a small sampling of what’s out there. The key is not so much “who” they are, but “what” they do.
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