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I’m Jennie Tsai, the medical device analyst at Gabelli Funds.
With coronavirus cases increasing in the US and globally, many US states and cities are preparing their healthcare systems and hospitals for an influx of critically ill patients. One key focus is to set up new intensive care unit (ICU) beds as they are in short supply.
The typical equipment required for an ICU in the US includes:
• Ventilator – helps the patient breath through a tube.
• Infusion pump/ IV lines – controls and delivers IV fluids and drugs to the patient.
• Patient monitor systems which monitors cardiac conditions.
And other supplies…
One company that manufactures products for the ICU setting is ICU Medical. Headquartered in San Clemente, CA, ICU Medical manufactures products for the plumbing in an ICU setting – the pipes, water and the motor that delivers fluids and drugs to the patient.
With approximately $1.2 billion of revenue in 2019, ICU Medical operates in four key segments:
• Infusion consumables which includes infusion therapy sets and needle-free connector products
• IV solutions which includes a broad portfolio of IV solutions and nutritionals.
• Infusion systems which includes Infusion pump hardware and IV medication software.
. And lastly Critical care which includes various types of monitoring systems to determine blood flow and blood oxygen levels.
The company also has a clean balance sheet with no debt and $275 million of cash as of December 31, 2019.
In summary – Since ICU Medical’s products and services are used primarily in the ICU and critical care settings, we believe the demand for its products and services will increase due to the coronavirus outbreak in the US and globally.
