Whitefish, MT / ACCESSWIRE / April 7, 2014 / OxySure Systems Inc. (OXYS), a global leader and medical device innovator of life-saving, easy-to-use emergency oxygen solutions with its “oxygen from powder” technology, jumped more than 5% on higher than average volume following its CE Mark announcement and coverage on InvestmentPitch.com on April 2, 2014.
Management called the CE Mark approval “a critical step toward launching this unique product into the thirty countries belonging to the European Economic Area (EEA)” in its recent press release. The approval covers the company’s OxySure Model 615, which is designed to let anyone easily administer emergency oxygen in much the same way that Automated External Defibrillators (“AEDs”) are used.
European end markets are particularly attractive for the emergency medical oxygen technology given that nearly a third of its population smokes compared to under a fifth of the U.S. population. As a result, approximately 7% of hospital admissions are from respiratory causes that could be avoided with early access to medical oxygen. These patients are often prescribed expensive treatments like AstraZeneca plc’s (AZN) Symbicort® for the treatment of COPD.
Sales of the OxySure Model 615 have already risen 10-fold in 2013 compared to 2012 with an estimated $1.6 million in sales. The company estimates that its total addressable market is some ten times larger than the market for AEDs that are produced by companies like Johnson & Johnson (JNJ). These devices are commonplace in the U.S. thanks to laws governing their placement.
OxySure believes that the European marketplace could boost its top-line results over the coming quarters. Management has already established two distribution agreements with Medizon and Aero Health, which will trigger a minimum combined purchase of 6,750 units over the next two years under the terms of the agreements.
“Our international distribution model has been quite successful for us so far,” said CEO Ross in a recent news release. “Basically you go to the market leader and say, 'we'll give you exclusivity in exchange for a minimum sales commitment'. It creates a symbiotic relationship. We get a fully incentivized partner, and they get the opportunity to control all the sales in their market.”
Shares of OxySure are trading at $0.73 a piece with a market capitalization of $17.5 million, as of April 4, 2014.
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