Global sanitation products major,
) recently collaborated with World Health Organization ("WHO") to
raise the standard of hand hygiene in hospitals around the world to
lower health care associated infections ("HAIs").
Apart from Ecolab, WHO has teamed up with 14 other companies
producing or distributing hand hygiene products to work together in
three major areas: education, research and system change. Together,
they are known as the WHO Private Organizations for Patient Safety.
Their main goal is to promote and spread awareness regarding WHO
recommended hand hygiene offerings and ensure their availability
around the globe.
The World Health Organization has reported that 7% and 10% of
patients admitted in hospitals in developed and developing
countries, respectively, catch an infection during their stay.
Also, as high as 30% of patients admitted in intensive care units
can acquire infections due to poor hand hygiene.
According to another survey conducted across 2000 hospitals in
69 nations by the WHO, only 65% of them have achieved a good
standard related to hand hygiene. The rest are below average and
require better resources and awareness.
Thus, management at Ecolab's Global Healthcare division believes
that it has a lot of scope to work in collaboration with its
partners and enhance patient safety around the world. The health
care business offers infection prevention products such as hand
hygiene products, instrument cleaners, patient drapes, equipment
drapes and surgical fluid to various surgery centers, acute care
hospitals, dental and veterinary clinics.
Revenues from Ecolab's larger U.S. Cleaning & Sanitizing
segment climbed 4% year over year to $709 million in the first
quarter of 2012,. Within U.S. Cleaning & Sanitizing, the
Healthcare unit revenues grew 24% year over year led by
higher environmental hygiene, surgical drapes and hand hygiene
Ecolab remains focused on bringing new technologies aimed at
reducing food safety risks. Moreover, the company is aggressively
pursuing acquisitions to expand into emerging markets. Latin
America remains a key growth engine for the company's overseas
Although we are impressed by Ecolab's strong international
exposure, we remain cautious about aggressive competition from the
Church & Dwight
). Also, raw material price inflation and high delivered product
costs remain headwinds. We are currently Neutral on Ecolab,
supported by a short-term Zacks #3 Rank (Hold).
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