) marked the fiscal 2013 as a landmark yearbased on several key
growth factors including the purchase of transfusion medicine
) in August 2012, the largest acquisition in the company's
history. Haemonetics stated that it will discuss about the key
growth initiatives at the 31
Annual J.P. Morgan Health Care Conference in San Francisco on
January 9, 2013.
The above-mentioned $551 million acquisition has allowed
Haemonetics to enter into the $1.2 billion whole blood collection
market. The performance of this business, with the integration
process on track, during the last reported quarter was at par
with expectations. The company noted that the integration effort
is expected to be completed substantially by the end of fiscal
Manual whole blood collection accounts for the vast majority
of the nearly 60 million red blood cells collection procedures
performed annually worldwide. The entry into the whole blood
market precedes the planned launch of the company's automated
whole blood product beginning later this fiscal year.
A limited market release is expected in the fourth fiscal
quarter with a full market release expected shortly thereafter.
Automated whole blood collection is considered to be an important
growth driver for the company.
The company has also planned to discuss on its paperless
phlebotomy product offering in the conference. Earlier,
Haemonetics revealed its plans to introduce the paperless
phlebotomy products in the whole blood market, the first out of
the three phases of the Automated Whole Blood product
launch. The company expects the FDA (Food and Drug
Administration) clearance of the paperless phlebotomy offering
and a limited market release to an identified U.S. blood center
customer by the end of the fourth quarter of fiscal 2013.
Haemonetics believes that the emerging markets are a key focus
area for future growth of the company. The company is currently
investing more in this market, especially in China, as over the
next five years business from China is slated for a CAGR
(compound annual growth rate) of 20%−25% driven by sales from
platelets, cell salvage ("Cell Saver Elite") and
We also note that the robust growth of Diagnostics is based on
23% growth of TEG revenues in China, which is penetrating deeper
in the field of interventional cardiology. The company is looking
at recording 9%−13% growth in revenues from emerging markets
(except Plasma) in fiscal 2013.
Over the next five years, business from China is slated for a
CAGR of 20%−25% driven by sales from platelets, cell salvage and
TEG. Given further penetration in these markets, revenue
contribution from the emerging markets will be more
The other important factors, which the company wants to
discuss in the conference, are the 510K approvalfor
next-generation OrthoPAT perioperative autotransfusion device,
OrthoPAT Advance (expected limited market release in the first
half of fiscal 2014) and an update on the Hemerus Medical
Haemonetics sounds optimistic with its several recent growth
drivers working on track. We believe that low global penetration
and positive demand dynamics provide an encouraging long-term
thesis for investing in the blood processing and supply chain
management industry. Gradual improvement of the plasma business
should further aid growth of the company.
Over the long term, we have a Neutral recommendation on
Haemonetics. The stock retains a Zacks #2 Rank (Buy) in the short
HAEMONETICS CP (HAE): Free Stock Analysis
PALL CORP (PLL): Free Stock Analysis Report
To read this article on Zacks.com click here.