Massachusetts-based medical devices maker ZOLL Medical (ZOLL) has won a major contract from the Government of New South Wales (“NSW”), Australia, for its automated external defibrillators (AEDs), devices that diagnose and treat sudden cardiac arrest (“SCA”). The Government of NSW has awarded the company a contract to provide its AED Plus devices for deployment on all Rural Fire Service stations across the state of NSW.
The Rural Fire Service offers fire protection and emergency services across NSW through its volunteer members. The installation of the AED Plus represents a part of a major public health policy aimed at making these devices more accessible to the people of NSW with the onset of SCA. ZOLL Medical reckons the award as the biggest for the AED Plus and expects to realize benefit from the contract over the course of 2011.
ZOLL Medical develops and markets non-invasive resuscitation devices and related software solutions both in the U.S. and overseas markets. It is a leading player in the global market for external defibrillators, which is worth more than $1 billion. ZOLL Medical competes with Physio-Control, a wholly-owned unit of Medtronic (MDT) and Philips (PHG).
ZOLL Medical is the innovator of a wide range of product features that have become the gold standard in the external defibrillator industry. It remains committed to expanding its product range to sustain growth in this market.
To boost growth, ZOLL Medical is expanding its footprint in the international markets. The company conducts its international operations through its subsidiaries in Canada, Germany, Austria, The Netherlands, France, Australia, New Zealand and the U.K. International markets contributed roughly 26% of consolidated revenues for fiscal 2010.
SCA, an abrupt loss of cardiac function, is one of the major causes of unexpected deaths. Early defibrillation raises the chances of survival from just 5% to more than 50%. Roughly 20,000 people in Australia succumb to SCA annually with the survival rate lower than 10%. The availability of AEDs within the first few minutes of the onset of SCA may considerably improve survival rates.
The Australian Resuscitation Council has recommended wide deployment of AEDs. With the NSW contract in place, ZOLL Medical is expected to play a major role in treating this near-fatal condition in Australia. Currently, we have a Neutral recommendation on ZOLL Medical, supported by a short-term Zacks #3 Rank (Hold).
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