Recently, Kinetic Concepts (KCI) has launched VAC GranuFoam Bridge XG dressing, which provides better coverage to the large wounds requiring bridging, including difficult-to-access pressure ulcers. Studies have shown that V.A.C. therapy could provide a new angle to the treatment of pressure ulcers. There is immense market potential in the field of pressure ulcers as approximately 2.5 million patients are treated each year in acute care facilities.

The company is confident that the new dressing along with the V. A. C. therapy would be able to provide better treatment for stage III and IV pressure ulcer patients. Kinetic Concepts derives almost 70% of its revenues from active healing solution (AHS), which offers advanced wound healing and tissue repair systems to meet specific patient requirement.

Negative Pressure Wound Therapy, including V.A.C. therapy, currently represents the primary source of revenue for the AHS business.  Through the launch of several products in the recent past, Kinetic has been strengthening this segment.

ABThera, the company’s ‘negative pressure solution’ for active management of open abdominal wounds continues to witness increasing adoption in the US and Europe, and approximately 56% of level 1 and level 2 trauma centers in the US have approved the product. Prevena, a product designed specifically for the management of surgically closed incisions, was fully launched on a global basis in the third quarter and also enjoyed a sale of thousand units at one go.

Banking on the successful launch of ABThera and Prevena, Kinetic is focusing on the surgical wound management market. This product group recorded annualized revenue of $20 million during the last reported quarter. During the third quarter, the company conducted several clinical preference trials in order to optimally position Via among doctors. These trials were quite informative and the product was well received in 50 placements in the US and EMEA.

We are currently ‘Neutral’ on the stock.

 
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