67 WALL STREET, New York - October 28, 2013 - The Wall Street Transcript has just published its Health Care IT Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: HIT Consolidation Activity - Electronic Health Records Implementation - Affordable Care Act - Healthcare IT Consolidation Trends
Companies include: Omnicell Inc. (OMCL) and many more.
In the following excerpt from the Health Care IT Report, the Executive Vice President and CFO of Omnicell, Inc. (OMCL) discusses company strategy and the outlook for this vital industry:
TWST: What's the competitive landscape like for you, and what do you see as some of your competitive advantages?
Mr. Seim: The competitive landscape is really just a few vendors. We are number two in the market in terms of total overall sales behind CareFusion and its Pyxis product line. McKesson has also been in this business, but recently announced plans to divest their pharmacy automation business. Francisco Partners, a technology-focused private equity firm with investments primarily outside the health care marketplace, has announced a definitive agreement to purchase the McKesson automation unit. AmerisourceBergen and Emerson Electronic are smaller players as well, but almost 90% of the market share is between Omnicell and CareFusion.
As for competitive advantages, we feel we are technologically ahead of our competition by some distance. We have the only system in the market that can handle virtually 100% of drug distribution through an automated software product, SinglePointe. Other vendors' systems tend to be limited to 70% to 80% of the medication flow, and those limitations require a number of manual interventions to handle the rest. In addition, we've got a number of safety features that our competition do not offer, a number of workflow features that make it easier for clinicians to interact with our systems, a number of data analytics capabilities that allow for clinicians to get a lot more information - through our Pandora data analytics solution - to help them optimize medication flow and detect drug diversion.
Another key difference is that our systems are modular, so hospitals can buy our systems and feel reasonably assured that their investment will be protected. We regularly come out with updates, so hospitals can simply replace individual modules and/or update the software to keep their systems technologically current. We came out with a refresh of our platform in 2011, and the new computer module made available then is backward-compatible with any previous system in use by our customers. Hospitals can equip their system with the latest technology while still preserving somewhere between 70% and 80% of their original investment. Our competitors do not match this business model, meaning we offer a lower, longer-term cost of ownership, and that along with the other technological features makes us...
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.