A Look at InfuSystem Holdings (INHI)
InfuSystem Holdings, Inc. (INHI), which competes with companies like Gentiva Health Services, Inc. (GTIV) and separated from its former parent I-Flow Corporation (IFLO), is the largest provider of ambulatory infusion pumps and related services in a large, growing and highly fragmented $100+ million market, and recently had the chance to present at a major industry conference.
InfuSystem Holdings, Inc. (OTCBB: INHI) (OTCBB: INHIW) (OTCBB: INHIU), the leading provider of ambulatory infusion pumps and associated clinical services, received some additional attention from investors after participating in the JMP Securities 2009 Healthcare Focus Conference held on October 5-6, 2009, in New York.
The JMP Securities 2009 Healthcare Focus Conference was an exclusive two-day event that provided company executives, asset managers and financial sponsors with valuable insight into the trends and innovations shaping the healthcare industry today. The fourth annual event included biotechnology, medical devices, healthcare services and IT companies.
Company Overview
InfuSystem provides and services ambulatory infusion pumps that are used for the continuous infusion of chemotherapy drugs to treat Stage III colorectal cancer, through a growing customer network of more than 1,300 oncology practices. From setup to billing, the company’s end-to-end solution offers these practices a way to improve patient outcomes and collect service fees.
The company allows for physicians to realize additional revenues, while providing patients with value-added services. At the same time, insurance companies are able to realize significant cost savings over alternatives. Combined, this win-win-win combination has led to extraordinary growth and success with this up-and-coming public company.
Market Overview
InfuSystem is currently the leading provider of ambulatory infusion pumps, with approximately a 40% share of the $100+ million market. The remaining 60% of the market is highly fragmented and composed of home-care referrals, physician-owned pumps, and smaller competing services. Of course, the company’s advantages are their end-to-end solutions, low overhead costs, and unique offerings.
Financial Overview
InfuSystem reported operating income of $4.8 million on revenues that grew 12% year-over-year to $35.4 million for the fiscal year 2008. The strong performance remains on-track in the first half of the year, with operating income of $2.6 million on revenues of $18.4 million.
Growth Drivers
InfuSystem expects to grow through a combination of organic growth and acquisitions. Organic growth opportunities include the billion dollar market for other infusion products as well as expansion into new clinics and the offering of additional complementary products. As for acquisitions, the company is seeking near-term accretive acquisitions that leverage its current distribution model in order to expand its footprint as well as introduce new products.
The Takeaway
In the end, InfuSystem is a market leader within a growing and fragmented $100+ million industry. Its services offer advantages to all parties involved, including physicians, patients and insurance companies, which has led to a constantly expanding customer base. These customers have been driving organic growth, while the company also explores additional opportunities to expand.
CONTACT: Daniel Minton, Managing Director, 406-862-5400, daniel@accelerize.com