), a provider of end-to-end automated solutions for
medication-use process, recently revealed that it will showcase
its highly regarded G4 know-how as well as other offerings, such
as the MTS drug adherence packaging know-how at the Arab Health
Conference from January 28 to January 31, 2013.
Omnicell will exhibit several offerings at the conference
including the Savvy Mobile Medication Workstation, the OmniRx G4
Automated Medication Dispensing Cabinet and the Anesthesia
Workstation. The offerings of MTS Medication Technologies which
will be exhibited at the conference include the Easyblist product
The 2013 Arab Health Conference is the most prominent yearly
healthcare meeting in the Arab world. Omnicell's participation at
the conference is bolstered by its regional office in Dubai which
provides training and other facilities to its customers in the
Omnicell serves a niche market that is expected to grow
further. Its inroad into the non-acute care market after
acquisition of MTS Medication has helped the company develop a
wider revenue base. Given the high profitability and
under-penetration of the non-acute market, the buyout appears to
be a rational and lucrative opportunity to support long-term
Further, the shortage of nursing facilities in the U.S. should
drive demand for automated solutions for medication and supply
solutions. The company is on a deal winning spree as a rising
number of institutions switch over to the automated mode.
We note that the international market remains largely
under-penetrated. Omnicell's continuous attempts to expand its
geographical footprint should yield positive results.
However, lower capital expenditure by hospitals as they battle
reimbursement cuts and budget constraints remains a looming
concern for Omnicell. The company also faces intense competition
in the medication management and supply chain solutions market
from major players such as
We believe that Omnicell, through its attractive growth
prospects and a three-pronged strategy of domestic expansion,
selective acquisitions and targeted international expansion, is
poised to accelerate growth. The stock carries a short-term Zacks
Rank #3 (Hold).
HMS Holdings Corp.
) is a Zacks Rank #1 (Strong Buy) stock which is expected to do
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