Category — linkedin

Reimbursement pressures subside in France – French homecare market a growth opportunity – cautious optimism…

Bastide, a French public traded homecare provider reports revenue up move of 3,5% Q2 2009 – 2010. This follows the troublesome legislative change in “les Etablissements d’Hébergement pour Personnes Agées Dépendantes (EHPAD)” (read Institutional reimbursement), the negative effect of which appears to have leveled off. In addition the regular homecare sector has continued it’s positive trend.

BASTIDE: Interim Results 2009-2010 & Resumption of growth in 2nd quarter)

Résultats semestriels 2009-2010 (Euronext)
(01/03/10 07:30 CET)

BASTIDE LE CONFORT MEDICAL

Résultats semestriels 2009-2010

Reprise de la croissance au 2ème trimestre

En K€ 2008-2009 2009-2010 Var.
Chiffre d’affaires 1er trimestre 24 427 22 782 - 6,7%
Chiffre d’affaires 2ème trimestre 26 846 27 778 +3,5%
Chiffre d’affaire 1er semestre 51 272 50 560 - 1,4%
[Read more →]

There is no doubt that with the strengthening dollar, costs for homecare products are set to rise in Europe. Most manufacturers and distributors of wheelchairs and other homecare products extensively source wheelchairs or components from China, where products are usually procured in US Dollars.

A quick glance at a ten year chart will show that a 10% or more swing in a relatively short time is not outside of the realm of possibility. It is also interesting to note the close linking of the Yuan (despite the US wish that that it will be allowed to float more in the future).

Of course with the largest revenues derived from Government reimbursement business, increasing prices is not going to be that easy. So it seems that the industry may be in for another round of restructuring, standardizing on lower featured products, or perhaps worse.

There are of course better ways to run sourcing and supply chain operations that are mostly dependent on China, but in an industry largely driven by cost, many companies have largely ignored these options – maybe at their peril.

Here is Business Week’s take on the fluctuating exchange rates.

Dollar Rises for Sixth Week Versus Euro After Fed Rate Increase – BusinessWeek.

Frank Barlin is Managing Partner at Sibaya LifeScience!

Are hospitals who limit ties with drug companies at a competitive disadvantage? | KevinMD.com.

KevinMD asks an interesting question, and goes on to summarize:

In a lot of ways, this is similar to the college recruiting of athletes. Schools that have rigorous academic requirements put themselves at a competitive disadvantage athletically. The same could be said for hospitals, who risk driving away doctors by limiting their ties with drug companies.

My own take is simply “absolutely not”.

On the related posts several other drug company / physician ethics / commercial questions are raised.

Press Release:

Handicare takes the next step to success

2 February 2010 – Midlands based Stairlift manufacturer Minivator has signed a deal to become the latest member of the family of companies in the Norwegian based Handicare, subject to regulatory approval.

Previously owned by its Directors and Gresham PE, Minivator Group has had an exceptional growth record, indeed it continued to experience double digit growth throughout the testing economic climate of recent years. With a core product range of stairlifts Minivator has expanded its presence establishing operations in North America and Germany and have recently started its own manufacturing base in the Far East. It has seen expansion within the UK having taken on new premises at least four times in the last three years.

As one of the world’s leading manufacturers of stairlifts with a turnover of approx. 55 million Euro, and 420 employees selling to over 35 countries the Minivator Group was a desirable prospect for many companies. The board were in no rush to sell, choosing instead to spend time finding the perfect partner to move forward with. They found such a match with the Handicare Group. Minivator CEO Mike Lord commented “We were looking for a buyer who not only made sound business sense but who was also a great fit with the culture and values that Minivator holds at its core. We are delighted with the deal and are looking forward to seeing what the future holds. We believe exciting times are ahead and being part of a larger and well established group that holds similar ethical beliefs will open up many opportunities that will be mutually beneficial and rewarding.”

The healthcare company Handicare AS, owned by Herkules Private Equity Fund1, was founded in 1986 and has operations in technical aids like wheelchairs and home care products in addition to adaptation of cars for elderly and physically disabled people. Through its subsidiary Puls, the Group also has a leading position in Norway in the sales of capital goods and consumables to hospitals and institutions. Handicare has its headquarters in Moss, Norway, and has subsidiaries in Sweden, Denmark, Germany, the Netherlands, England, Belgium, Poland, USA and Canada, and distribute its own products to an additional 30 markets. Handicare has just shy of 1000 employees and reached sales over 250 million Euro in 2009.

Handicare CEO Per Gunnar Borhaug explained “Handicare has grown both organically and through the acquisition of successful companies that had the same drive as Handicare: the desire to provide excellent products and services that help improve the quality of life for the less able, the elderly and those who care for them. Having identified Minivator Group as a financially promising acquisition target we were delighted to find that they had the kind of culture that would fit right in with Handicare’s other companies.”

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For further information concerning this press release please contact:

Per Gunnar Borhaug, CEO Handicare, +47 69 24 44 28

Mike Lord, CEO Minivator, +44 (0) 1384 40 87 00

[1] Herkules Private Equity Fund 1 is an investment fund with Euro 250 million in capital from 25 Norwegian and international investors. Herkules Capital has in total 1,4 bill Euro under its administration. HPEF has a financial strength which enables them to take a dominant position of ownership in well-established companies with a potential for further growth. Herkules acquired Handicare in July 2005 and has during the latest three years tripled the size of Handicare and is aiming for further growth.

More about Handicare over time on this blog

From Homecare Monday

So – surprise surprise – in the latest round of proposals there is one that orders an investigation possibly that manufacturers of homecare products are going to be asked to bid.

Of course we have been saying for some time that the traditional supply lines between manufacturers and dealers / distributors / buying organizations are blurring, not only as a result of this competitive pressure but the bar has been lowered because of the ease of Asian sourcing for manufacturers and distributors alike.

This is happening in several countries in Europe as well – come to think of it the British NHS – the biggest supplier of wheelchairs in the UK, has been doing it for years.

Permobil has announced that they will be establishing a brand new 120000 sq ft facility in the US – 80000 of this will be dedicated to manufacturing.

This comes at a time where National Competitive Bidding, Medicare cuts and China outsourcing are the norm for several wheelchair manufacturers.

Lebanon, TN (October 20, 2009) — Permobil, Inc., an international company that is the world’s leading manufacturer of custom-made powered wheelchairs, will build its new $12 million North American Operations Center in Lebanon on a 17-acre site located in Park 840. The project is the largest, single capital investment that Permobil has ever made since it was established more than 40 years ago. Permobil’s new 120,000 square foot building will be the company’s second largest and most technically-advanced manufacturing facility. It will include over 80,000 square feet of manufacturing space and nearly 40,000 square feet of corporate office space. Construction of the new building will begin in late October 2009 and is slated for completion in summer 2010.

France based EDAP has announced 510k approval for it’s new lithotripsy device.

Marc Oczachowski, EDAP’s Chief Executive Officer, said, “We are very pleased that the U.S. FDA has granted 510(k) approval for Sonolith I-Sys, which marks a clear milestone for EDAP, further validates our technology and supports our objective to expand the Sonolith I-Sys into additional geographic territories. With the U.S. approval, we will be positioned to enter one of the largest global markets for lithotripsy. This is an excellent opportunity for EDAP. We will now actively market Sonolith I-Sys and its patented electroconductive technology. We strongly believe that this is the most advanced and robotized lithotripsy system and that it will play a role in the high end market in the U.S. as it was designed to respond to the specificities of this established market.”

EDAP, publically traded in the US saw it’s shares jump significantly from 1.37 USD to over 4 USD.