Henry Schein Inc.
) recently extended its long-standing relationship with
) through another distribution agreement. Henry Schein's animal
health business in the U.S. - Butler Schein Animal Health will
now distribute Masimo's innovative portfolio of pulse oximetry
This appears to be a lucrative deal for Henry Schein as it will
expand its product offering for the fast growing animal health
market. Revenues from the animal health business recorded robust
double-digit growth for the fifth straight quarter in the first
quarter of 2013. The inclusion of Masimo's advanced pulse
oximetry technology should accelerate growth for Henry Schein's
animal health franchise.
Henry Schein continues to capture share in the animal health
market. Following the deal, Masimo's innovative portfolio will be
made available to Butler Schein's customer base of over 26,000
veterinary professionals across the U.S. The novel distribution
agreement with Masimo should further expand Henry Schein's market
The distribution agreement applies to Masimo's upgradable rainbow
Radical-7 Pulse CO-Oximeters, Rad-87, Rad-57, Rad-5 and Rad-8,
all with SET Measure-Through Motion and Low Perfusion pulse
onximetry. The deal between Masimo and Henry Schein intends to
leverage the companies' revenue profile.
At present, Henry Schein is rebranding Butler Schein Animal
Health to Henry Schein Animal Health and expects to complete the
procedure in the ongoing year. The rebranding of domestic
operations coupled with international network in Europe,
Australia and Asia is likely to strengthen Henry Schein's global
foothold in the animal health market.
While Henry Schein continues to boost its domestic animal health
business, unfavorable macroeconomic factors in the overseas
market such as currency headwinds and touch capital spending
environment remain an overhang. The stock carries a Zacks Rank #3
(Hold). While we remain on the sidelines for Henry Schein, we are
), carrying a Zacks Rank #2 (Buy) will do well.
CONMED CORP (CNMD): Free Stock Analysis
HENRY SCHEIN IN (HSIC): Free Stock Analysis
MASIMO CORP (MASI): Free Stock Analysis
STERIS CORP (STE): Free Stock Analysis Report
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