Israeli Distribution Deal - Boon For 'Trauma' Use? - Analyst Blog

Brian Marckx, CFA

Israeli Distribution Deal – Boon For “Trauma” Use?

In December 2010 Vicor Technologies (VCRT) announced that they signed a distribution deal for its PD2i Analyzer in parts of Asia, including China. This morning a company press release announced an agreement with Hadar Medical and Training Services for distribution of Vicor’s Analyzer in Israel and Palestine. Terms of the call for Hadar to gain approval of the PD2i Analyzer from Israeli regulators.

Hadar bills itself (from the company’s website) as “one of the leading firms in Israel within the importation and marketing of emergency medical equipment” and “the largest and most experienced company in Israel for training of first aid, resuscitation, ATLS (advanced trauma life support), and trauma training and medical programs.”

Hadar’s customers are largely within the public sector including the military, the national health system (including hospitals), schools and universities, and law enforcement.

Hadar’s management team has backgrounds in the Israeli military including previous high level medical positions within the Israeli army.

We think this deal with Hagar could result in a solid foothold in Israel and possibly an “in” within the Israeli military. In clinical trials the PD2i Analyzer has shown to be more effective than standard triage techniques in identifying patients who will die of their injuries – which supports use of the Analyzer in emergency medical applications. This would be a perfect fit for a distributor such as Hagar which markets directly to the military, hospitals and ambulance services.

As a reminder, Vicor in collaboration with the U.S. Army Institute of Surgical Research (USAISR), used the PD2i Analyzer in a study titled “Prediction of Injury Severity and Outcome in the Critically Ill Using PD2i.” The PD2i Analyzer was used to examine 325 trauma victims to determine which patients would die of their injuries. By looking at the interplay between the victims’ heart and brain, the Analyzer enabled physicians to correctly identify all twenty patients that would die of their injuries. Importantly, conventional triaging techniques had indentified only six of the twenty patients as requiring lifesaving intervention. In November 2009 Dr. Andriy Batchinsky, a researcher with the USAISR, made a presentation at the American Heart Association’s Resuscitation Science Symposium in which he identified the PD2i Analyzer as the most promising diagnostic tool for in-field trauma triage.

We cover Vicor and have an Outperform rating on the stock with a near-term price target of $1.07. See below for access to our full 25-page report on the company.

For a free copy of the full research report, please email scr@zacks.com with VCRT as the subject.

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