In brief: Insulet hits financial milestone, KCI buys, Roche cuts
BEDFORD, Mass. – Insulin pump maker Insulet reported revenues of $60.1 million for the second quarter ended June 30, 2013, an 18% increase compared to the same period last year. Gross profit was $26.8 million, compared to $22.3 million. Operating losses decreased to $5.8 million, compared to $10.5 million. The company cited the launch of its new, smaller OmniPod during the first quarter of 2013 as key to growth. "With a greater than 50% year-over-year increase, we shipped a record-setting level of initial orders of the OmniPod in the second quarter,” stated Duane Desisto, president and CEO, in a release. “This robust demand drove strong financial results, and we generated positive quarterly cash flow for the first time in Insulet's history.”
Liberator reports earnings
STUART, Fla. – Liberator Medical posted sales of nearly $17.5 million for its fiscal third quarter ended June 30, 2013. That’s an increase of 16.9% compared to the same period last year, the company stated in an earnings report released Aug. 9. Net income for the quarter was $2 million, an increase of 197.9% over the same period the previous year. Liberator also noted that it has repurchased 195,000 shares since it announced a buyback program June 13.
KCI buys U.K.-based wound care company
SAN ANTONIO – Kinetic Concepts, Inc. (KCI) has signed a definitive agreement to acquire Systagenix, a provider of wound care products based in the U.K., for $485 million. The deal represents a major step in KCI’s strategy toward increased revenue diversification and geographic expansion, according to a press release. Systagenix’s products focus on moist wound healing dressings, including Promograin Prisma, a collagen dressing; Tielle (foam) and Adaptic (non-adherent contact layers). It distributes more than 20 million dressings each month to more than 100 countries. Formerly part of Johnson & Johnson, Systagenix has about 800 employees worldwide. Also as part of the deal, One Equity Partners will spin off an early stage diagnostics business from Systagenix and operate it as a standalone business. KCI will enter into a long-term strategic relationship with the business for the distribution of Woundcheck protease status.
Mail-order program forces Roche to cut jobs
INDIANAPOLIS – Roche, which has its North American headquarters here, will cut jobs in the next several months due to a 14% decline in revenues for the first six months of this year for its diabetes care business, according to an article in the Indianapolis Business Journal. “The U.S. diabetes care market is rapidly evolving, and Roche’s diabetes care business in the U.S. is responding by making changes to its customer service and manufacturing operations, which includes the elimination of some jobs,” spokesman Todd Siesky wrote in a prepared statement to the journal. A national mail-order program for diabetes supplies went into effect July 1, cutting Medicare reimbursement by, on average, 72%. Roche will cut jobs in customer service in Fishers and in manufacturing in Indianapolis. Between the two sites, Roche employs more than 900 in the area, according to the journal. Reuters reported earlier this year that the company is trying to sell its diabetes care business.
3B/BMC asks for investigation of ResMed
LAKE WALES, Fla. – 3B Medical/BMC Medical, a manufacturer of sleep diagnostics and therapy devices, has requested that the International Trade Commission investigate whether ResMed's action to exclude imports of CPAP devices and interfaces is contrary to the public interest in lowering healthcare costs, according to an Aug. 7 press release. "Because of the economic pressures to reduce healthcare costs, we believe that 3B/BMC plays an important and vital role in bringing lower costs to the sleep disordered breathing market," stated Alex Lucio, vice president, 3B Medical, in the release. "In our view, the litigation by ResMed has little to do with any legitimate intellectual property issues and has more to do with using litigation costs to try and limit competition.” The request is the latest development in the 3B Medical/ResMed patent infringement dispute.
A/R, Universal form relationship
OVERLAND PARK, Kan. – A/R Allegiance Group announced Aug. 9 that it has entered into a joint development agreement with Universal Software Solutions. Their goal: a seamless, automated solution. A/R offers an automated patient billing workflow and collections solution, whereas Universal offers a practice management solution. “Our combined solutions will create noticeable savings to the HME or home infusion provider at a time when they need it most,” stated Christopher Dobiesz, president of Universal, in a press release.
No stop to prepay review for certain power wheelchairs
INDIANAPOLIS – National Government Services (NGS), the DME MAC for Jurisdiction B, has reported a claims error rate for power wheelchair bases with options and accessories of 64% between April 1, 2013, and June 30, 2013. NGS examined 754 claims that were developed for additional documentation and it paid in full only 234 claims. The most common reason for denials: The physical and functional findings that were documented in the medical records failed to clearly establish medical necessity for power mobility. Additionally, NGS reported providers failed to respond to requests for additional documentation to support medical necessity 57 times. The DME MAC will continue to conduct a widespread prepayment medical review for all Group 2 power wheelchairs that do not possess the capability of adding a power seating option (K0820-K0829).
Apria sticks with collections contract
LAKE FOREST, Calif. – Apria Healthcare has extended its contract with Waltham, Mass.-based Connance after the company helped it increase patient pay cash collections. Connance provides predictive analytic technologies that improve financial performance in healthcare enterprises. Connance started to manage Apria’s collection agency network in 2011, streamlining communication efforts, and standardizing reporting and activity management.
Cardinal Health’sretail pharmacy customers can now use Independence Medical as a resource for more than 40,000 home medical products, Cardinal announced Aug. 8 at its annual Retail Business Conference…Ottobock Mobility Solutions has snagged exclusive distribution rights in North America for three products by Krabat AS, a developer of aids for children and youth, Ottobock announced Aug. 8. The products: Krabat Pirat, a floating aid that helps a child be independent in the water; Krabat Pilot, an aid that facilitates crawling; and Krabat Jockey Plus, an active children's chair that provides mobility and variation…The American Association of Breast Care Professionals has asked Noridian, the Jurisdiction D DME MAC, for a meeting to discuss numerous and ongoing audits in the region. Noridian is currently conducting a complex medical review of silicone breast forms (L8030)…Vantage Mobility International (VMI) has given away a 2013 Honda Odyssey Touring Edition with VMI Northstar Conversion to Steve Herbst, one of three winners of the 2013 Local Heroes Contest, the company stated in an Aug. 6 press release…ApniCure has announced that positive results from the ATLAST clinical trials of its Winx sleep therapy system to treat obstructive sleep apnea have been published in Sleep Medicine. The trial results show significant improvements in both apnea-hypopnea index (AHI) and oxygen desaturation index (ODI) on the first night of treatment and following 28 days of using the Winx…Pinnacle Medsource has expanded into Texas with a new distribution center in northern Houston, according to a press release. Pinnacle Medsource, which uses a “hybrid manufacturer/distributor bundling model,” carries products from more than 60 manufacturers.
Quantum Rehab and Pride Mobility Products have promoted Chuck Finn to COO and hired Douglas Cummins as chief technology officer.