Omnicell, Inc.
(
OMCL
), a leading developer and marketer of end-to-end automation
solutions for the medication-use process, will showcase its newly
launched fourth-generation G4 solutions in the presence of 70,000
healthcare professionals at the Arab Health 2012 Congress and
Exhibition, scheduled from January 23 to January 26.
Given the fact that very few hospitals have adopted medication
control systems in the international market, Omnicell is presently
working hard to establish its presence in the global arena,
especially in markets with huge potentials.
Earlier in May last year, Omnicell set up its Middle East
regional office and training center in Dubai, which is considered
to be path breaking for healthcare customers and business partners
in that region. This center has already organized several training
sessions for students from six countries. The company is also
looking forward to provide training using the G4 platform to
hospitals in that region.
Presently, outside the US, Omnicell operates in Canada, Europe,
South America, Australia and Asia with supply chain sourcing in
Asia. The company aims to derive 20% of its revenues from
international operations in the longer term compared with the
current level of 5%.
To achieve this, the company is aiming at expanding its
international footprint through various strategies. The company
expects the adoption curve to show an ascending pattern going
forward, as it is on track to develop products incorporating new
technologies, to capture more market share from its competitors and
continue winning more deals.
Despite the tough economic conditions in Europe, we are
optimistic about Omnicell's growth prospects in the international
arena. In November 2011, Omnicell launched its Mandarin-language
versions of G4 platform for clinical use in China. Additionally,
Omnicell announced a partnership with China Resources Beijing
Pharmaceutical for distributing its automated medication dispensing
systems in China.
Considering the increased investment in information technology (
IT
) by healthcare providers and the huge untapped market for
automated healthcare management systems in China, we expect
Omnicell's initial entry into the Chinese market to further enhance
the company's international endeavor in due course.
Athens Regional Hospital in Georgia has adopted the upgraded
version of OptiFlex supply management solutions. Wellmont Health
System in Tennessee and Sentara Health in Virginia installed the
company's new controlled-substance management solution.
Notwithstanding the concerns arising from several macro-economic
uncertainties as well as intense competition from major players
such as
CareFusion Corporation
(
CFN
) and
McKesson Automation
(
MCK
),
we are optimistic about Omnicell's growth prospects globally. We
are also looking forward to the Omnicell's fourth quarter and full
year 2011 result which is expected to release on Thursday, January
26, 2012.
Currently, Omnicell retains a short-term Zacks #2 Rank (Buy
rating). However, over the long term, we remain Neutral on
Omnicell.
CAREFUSION CORP (
CFN
): Free Stock Analysis Report
MCKESSON CORP (
MCK
): Free Stock Analysis Report
OMNICELL INC (
OMCL
): Free Stock Analysis Report
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