Shares of InfuSystem Holdings Inc. (INFU) have been hitting new highs, as the Company continues to gain market share in its oncology business and sees continued growth in its pain management and infusion products markets.
InfuSystem is a national durable medical equipment (“DME”) solutions provider for manufacturers and health care providers in the United States and Canada.
The Company has significantly increased its revenue over the years, thanks to new initiatives like the introduction of InfuSystem Mobile, a “first of its kind” mobile application to enhance safety and communication, in 2018, and continuing success in winning new business for InfuBLOCK, its alternative to opioid pain management.
The annual revenue was $65.5 million in 2017 and $67.1 million in 2018. The Company expects $79.0 million in total revenue for 2019 and over $89.0 million in revenue for the fiscal year ending December 31, 2020.
Earlier this month, the Company entered into an agreement with a Top-10 health care services company to add Negative Pressure Wound Therapy (“NPWT”) to its Integrated Therapy Service (“ITS”) platform, joining the existing therapies, oncology and pain management. The core market to be targeted under the new agreement is U.S. home health care, which as a subset of the broader NPWT market has an estimated addressable market of $600 million per year, according to Richard DiIorio, chief executive officer of InfuSystem.
Negative Pressure Wound Therapy (“NPWT”) is a therapeutic technique using vacuum dressing to promote healing of acute and chronic wounds. The U.S. market for NPWT therapy is estimated to exceed $2 billion by 2024.
InfuSystem is slated to report fourth quarter and fiscal year 2019 financial results in the first week of March.
INFU has traded in a range of $3.90 to $11.89 in the last 1 year. The stock closed Wednesday’s trading at $11.75, up 5.86%.
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