Henry Schein, Inc.
, a worldwide distributor of healthcare products and services
recently entered into an exclusive distribution agreement with Alma
Lasers, Inc. a laser, light-based, radiofrequency and ultrasound
devices for aesthetic and medical applications developer. The
partnership will enable Alma Lasers to utilize the huge
distribution network of Henry Schein across the US for marketing of
its product Harmony ClearChoice.
Per the deal, the Foot and Ankle business of Henry Schein
Medical will distribute Harmony ClearChoice to treat onychomycosis,
a nail fungus variant. Earlier in March 2012, the Harmony laser
technology platform of Alma Lasers received the US Food and Drug
Administration's clearance. This platform provides two discrete
laser technologies to treat onychomycosisfrom inside.
With around 35 million people suffering from onychomycosis
worldwide, this innovative technology is expected to go down well
with the huge customer base of Henry Schein especially in the
podiatry market. Moreover, being the sole technology to treat this
challenging nail infection, the addition of Harmony ClearChoice is
expected to boost Henry Schein's medical business further in the
Henry Schein is currently focusing on expansion through
strategic partnerships and acquisitions. Earlier this month, the
company entered into another distribution agreement with
non-invasive monitoring technology for patient care provider
) to distribute Masimo's Pronto-7, the only US Food and Drug
Administration (FDA) cleared small non-invasive device for
spot-checking of total hemoglobin, SpO2, pulse rate and perfusion
Earlier in May, the company completed the acquisition of AUV
Veterinary Services, the veterinary products distribution arm of
the Netherlands-based AUV Group. Last year, the company closed
significant acquisitions like Provet Holdings, the largest
veterinary products distributor in Australia and California-based
Alpha Scientific, a surgical, pharmaceutical and laboratory
Henry Schein's portfolio consists of consumable products, small
equipment, laboratory products, large dental and medical equipment,
equipment repair services, branded and generic pharmaceuticals,
vaccines, surgical products, diagnostic tests, infection-control
products and vitamins.
The company continues to experience strong top-line growth and
has established its footprint in both domestic and international
markets in dental, veterinary and medical supply
distribution. We are also encouraged by the company's focus on
improving its cost structure to drive profitability. The stock
retains a short-term Zacks #2 Rank (Buy).
Henry Schein's performance should improve further with the
gradual recovery in economic outlook. However, the company faces
stiff competition from major players like
Patterson Companies Inc.
). Over the long term, we have a Neutral recommendation on the
HENRY SCHEIN IN (HSIC): Free Stock Analysis
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MCKESSON CORP (MCK): Free Stock Analysis Report
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