Omnicell Inc.
(
OMCL
), provider of end-to-end automation solutions for medication-use
process, continues to expand its client base. The company along
with its partner Mannai Corporation has been selected as the
exclusive provider of automated medication management solutions
throughout the Sidra Medical and Research Center in Doha, Qatar.
Sidra Medical and Research Center, which is currently under
construction, will be focusing on woman and child health on a
regional and global basis. This center will be a complete digital
facility with 400 beds at the beginning with an expansion plan of
up to 550 beds at a later phase. To support its all-digital
facility, Sidra will deploy Omnicell's G4 platform.
The decentralized pharmacy model of the company's G4 platform is
expected to enhance nursing workflow and standards of patient
care at Sidra. Considering that the company's offerings were
selected after a worldwide competitive review of medication
automation technology, selection of Omnicell implies a clear
competitive edge over other players.
In a concerted effort to offer unparalleled medical facilities,
Sidra plans to standardize its management solutions by
implementing other offerings from Omnicell to better manage its
hospital. These include the Anesthesia Workstation, the Savvy
mobile medication workstation and the Anywhere RN remote
medication management system.
Our Take
Omnicell has already established its presence in the Middle East.
Last year, the company inked an agreement with King Faisal
Specialist Hospital and Research Center, Riyadh (accredited by
The Joint Commission International) to replace all of its
operating systems with the company's Anesthesia Workstations. The
latest deal will expand Omnicell's foothold in the Middle East
market.
This is well-aligned with the company's long-running goal of
driving growth through expansion in international markets. Given
that the overseas market is less than 1% penetrated, increasing
awareness of automation benefits and higher investment in
information technology by healthcare providers should provide
incremental revenue opportunities for Omnicell.
Due to a glaring lack of favorable events over the recent past,
the stock carries a Zacks Rank #3 (Hold) with no revision in
estimates for the ongoing year. Thus, we look forward to the
fourth-quarter results of Omnicell on Jan 31, 2013 which might
encourage bullish sentiment. However, its peers
CareFusion Corporation
(
CFN
) and
AmerisourceBergen Corporation
(
ABC
) carry a Zacks Rank #2 (Buy).
ResMed
(
RMD
), which reported a positive quarter last week, carrying a Zacks
Rank #1 (Strong Buy) also warrants a look.
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