) recently signed a multi-year deal with HemeXcel Purchasing
Alliance LLC. Per the deal, Haemonetics will be the authorized
supplier of certain whole blood components for HemeXcel
exclusively over a period of two years starting 2014. Financial
details of the agreement, however, remain undisclosed.
Haemonetics does not expect the deal to have a significant
impact in fiscal 2014. Management is keen to expand the whole
blood business and expects to receive a major whole blood tender
in early 2014.
The whole blood collection market is highly competitive with
low demand leading to aggressive competitive pricing. However,
according to MarketResearchReports.Biz, over 2012-2016, the whole
blood collection market is expected to expand at a CAGR of
Growth is expected to be driven by increased demand for
products necessary to cater to an aging population. Therefore,
Haemonetics management's expectation to offset margin headwinds
beyond 2015 by capitalizing on their initiatives to create value
seems to be in line with the market forecasts.
Haemonetics entered the whole blood business by acquiring the
blood collection, filtration and processing business lines of
) for $551 million on Aug 1, 2012. The company then acquired
Hemerus Medical, LLC on Apr 30, 2013 for a total of $41.1
million, of which $17 million is yet to be paid subject to
The company entered the $1.2 billion-strong whole blood
collection market with the vision to launch the first whole blood
Currently, Haemonetics has a Zacks Rank #4 (Sell). Some
better-ranked stocks in the medical products industry include
Cardiovascular Systems Inc.
ZELTIQ Aesthetics, Inc
). Both these stocks sport a Zacks Rank #1 (Strong Buy).
CARDIOVASCLR SY (CSII): Free Stock Analysis
HAEMONETICS CP (HAE): Free Stock Analysis
PALL CORP (PLL): Free Stock Analysis Report
ZELTIQ AESTHETC (ZLTQ): Free Stock Analysis
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