Industrial gases company Air Products & Chemicals Inc. (APD) has entered a contract with one of the United States’ largest independent MRI (magnetic resonance imaging) service providers, Genesis Medical Imaging Inc.
Per the agreement, Air Products will supply its KeepCOLD Cryogenic Services product for around 150 magnets that are presently installed by Genesis for MRI scans at medical service providers across the country.
Air Products appears to have a great deal of confidence in this agreement with Genesis as it has a considerable experience in the MRI servicing sector of almost 20 years and offers established products to its customers.
The company offers services as per the requirements of its customers and has gained considerable experience by working in close association with original equipment manufacturers (OEMs). This contract enables Air Products to continue to expand its customer base in the MRI servicing market and to increase its existing network with the independent MRI segment of the medical services industry.
The long-term contract with Genesis is the largest ever that Air Products has signed in the independent sector and the company feels that it will provide a number of opportunities. Genesis also, on the other hand, holds the view that its agreement with Air Products will enable it to provide timely services to its customers by ensuring a sustained quality improvement and value addition.
Air Products, the largest international supplier of helium, plays a very vital role in the MRI industry and its MRI expertise is unparalleled among cryogen service providers. There are more than 12,000 MRI magnets using Air Products’ helium and cryogenic gases to keep them cold and superconducting for the medical services industry.
Recently the company also announced that it will launch its new product, Deposilk Q1 Polymer at In Cosmetics in Milan, Italy, on March 29. Deposilk Q1 Polymer is a new offering that empowers formulations through superior deposition of ingredients with excellent sensory aesthetics.
Based in Pennsylvania, Air Products is benefiting from a long-term take-or-pay contract, a consolidated industry structure, a diverse customer base and sustained pricing power.
However, soaring energy and raw material costs pose a threat to margin expansion. In order to compensate for escalating raw material costs Air Products has been increasing the price for a range of chemicals it makes for industrial use.
Air Products faces stiff competition from Praxair Inc. (PX) and The Linde Group.
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