ICU Medical Inc. (ICUI, Financial) filed Quarterly Report for the period ended 2009-09-30.
ICU Medical Inc. together with its wholly-owned subsidiary Budget MedicalProducts Inc. is a leader in the development manufacture and sale of proprietary disposable medical connection systems for use in intravenous therapy applications. The company's intravenous connectors are designed to prevent accidental disconnection's of intravenous lines and to protect healthcare workers and their patients from the spread of infectious diseases such as Hepatitis B and Human Immunodeficiency Virus bysignificantly reducing the risk of accidental needlesticks. Icu Medical Inc. has a market cap of $552.2 million; its shares were traded at around $37.36 with a P/E ratio of 18.8 and P/S ratio of 2.8. Icu Medical Inc. had an annual average earning growth of 8.4% over the past 5 years.
Net sales to domestic distributors and through direct sales in the third quarter of 2009 (including Canada) were $18.8 million compared to $9.5 million in the third quarter of 2008, an increase of 98%. The increased sales were primarily from new standard and custom critical care sales, increased oncology and TEGO sales, both newer product lines and increased custom infusion set sales. We began selling standard and custom critical care products directly to distributors and through direct sales in September 2009. New standard and custom critical care sales in the third quarter of 2009 were $5.8 million and $1.0 million, respectively. The increase in custom infusion set sales was primarily in increased unit volume sales. We expect increased sales in domestic distributor and direct sales in 2009 compared to 2008 from new standard and custom critical care sales, growth in custom infusion sets, custom oncology products and other new product sales, although there is no assurance that these expectations will be realized.
Net sales to international distributors and through direct sales (excluding Canada) were $12.6 million in the third quarter of 2009, compared with $8.2 million in the third quarter of 2008. The increased sales were primarily from new standard critical care sales of $1.0 million, new custom critical care sales of $0.4 million and increased custom infusion set sales of $1.2 million. The majority of the increase was attributable to increased sales in Europe and the Pacific Rim. We expect increases in international sales in 2009, primarily from new standard and custom critical care sales and increased CLAVE , custom infusion and oncology products and standard oncology product sales and additional sales of our new products from our recent acquisition in Germany, although there is no assurance that these expectations will be realized.
Net sales of custom products, which include custom infusion, custom oncology products and custom critical care products, were $19.4 million in the third quarter of 2009 compared to $18.9 million in the third quarter of 2008. This increase was primarily comprised of increased sales of custom infusion sets of $3.0 million, partially offset by lower custom critical care sales of $1.8 million and lower custom oncology sales of $0.8 million. The unit growth in custom infusion sets was primarily due to the conversion by certain of our customers from a competitors standard sets to our custom systems. The lower custom critical care sales are due to lower unit volumes. We expect increases in custom infusion set sales and new custom oncology sales in 2009 compared to 2008. We expect comparable to slightly lower custom critical care sales in 2009 compared to 2008 because of higher unit volumes expected in the fourth quarter of 2009 that should offset the lower unit sales in the first nine months of 2009.
Our standard oncology product sales were $1.6 million in the third quarter of 2009 compared to $0.9 million in the third quarter of 2008.
Other revenue consists of license, royalty and revenue share income and was approximately $0.1 million in the third quarter of 2009 and $0.4 million in the third quarter of 2008. We may receive other license fees or royalties in the future for the use of our technology. There is no assurance as to amounts or timing of any future payments, or whether such payments will be received.
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ICU Medical Inc. together with its wholly-owned subsidiary Budget MedicalProducts Inc. is a leader in the development manufacture and sale of proprietary disposable medical connection systems for use in intravenous therapy applications. The company's intravenous connectors are designed to prevent accidental disconnection's of intravenous lines and to protect healthcare workers and their patients from the spread of infectious diseases such as Hepatitis B and Human Immunodeficiency Virus bysignificantly reducing the risk of accidental needlesticks. Icu Medical Inc. has a market cap of $552.2 million; its shares were traded at around $37.36 with a P/E ratio of 18.8 and P/S ratio of 2.8. Icu Medical Inc. had an annual average earning growth of 8.4% over the past 5 years.
Highlight of Business Operations:
Distribution channels: Net U.S. sales to Hospira in the third quarter of 2009 were $21.4 million, compared to net sales of $35.7 million in the third quarter of 2008. The $14.3 million decrease was primarily due to minimal standard and custom critical care sales to Hospira as a result of the critical care asset purchase from Hospira. We entered into the asset purchase agreement with Hospira on July 8, 2009 and closed the transaction on August 31, 2009. The sales for all standard and custom critical care shipments to Hospira between signing the agreement and closing the transaction were not recognized as revenue. The gross profit from these sales of $1.9 million was deferred and will be recognized when the inventory is sold to the end customer. We had $0.7 million of standard and custom critical care sales to Hospira in the third quarter of 2009 compared to $13.7 million in the third quarter of 2008. Excluding standard and custom critical care, our sales to Hospira decreased $1.3 million in the third quarter of 2009 compared to the third quarter of 2008. The decrease was primarily due to lower sales of custom oncology of $1.0 million, CLAVE of $0.4 million, CLC of $0.3 million, partially offset by increased custom infusion set sales of $0.9 million. The decrease in CLAVE sales was from lower unit sales as Hospira began to reduce their inventory levels due to their stated objective to reduce their overall inventory balances. The decrease in custom oncology products was primarily due to lower unit sales. We may look for alternative distribution if this trend continues. The increase in infusion set sales is from higher unit sales primarily attributable to the conversion by certain of our customers from a competitors standard sets to our custom systems. Excluding critical care products, we expect minimal growth in sales to Hospira in 2009 as Hospira continues to take a more conservative stance in their inventory levels. There is no assurance that these expectations will be realized.Net sales to domestic distributors and through direct sales in the third quarter of 2009 (including Canada) were $18.8 million compared to $9.5 million in the third quarter of 2008, an increase of 98%. The increased sales were primarily from new standard and custom critical care sales, increased oncology and TEGO sales, both newer product lines and increased custom infusion set sales. We began selling standard and custom critical care products directly to distributors and through direct sales in September 2009. New standard and custom critical care sales in the third quarter of 2009 were $5.8 million and $1.0 million, respectively. The increase in custom infusion set sales was primarily in increased unit volume sales. We expect increased sales in domestic distributor and direct sales in 2009 compared to 2008 from new standard and custom critical care sales, growth in custom infusion sets, custom oncology products and other new product sales, although there is no assurance that these expectations will be realized.
Net sales to international distributors and through direct sales (excluding Canada) were $12.6 million in the third quarter of 2009, compared with $8.2 million in the third quarter of 2008. The increased sales were primarily from new standard critical care sales of $1.0 million, new custom critical care sales of $0.4 million and increased custom infusion set sales of $1.2 million. The majority of the increase was attributable to increased sales in Europe and the Pacific Rim. We expect increases in international sales in 2009, primarily from new standard and custom critical care sales and increased CLAVE , custom infusion and oncology products and standard oncology product sales and additional sales of our new products from our recent acquisition in Germany, although there is no assurance that these expectations will be realized.
Net sales of custom products, which include custom infusion, custom oncology products and custom critical care products, were $19.4 million in the third quarter of 2009 compared to $18.9 million in the third quarter of 2008. This increase was primarily comprised of increased sales of custom infusion sets of $3.0 million, partially offset by lower custom critical care sales of $1.8 million and lower custom oncology sales of $0.8 million. The unit growth in custom infusion sets was primarily due to the conversion by certain of our customers from a competitors standard sets to our custom systems. The lower custom critical care sales are due to lower unit volumes. We expect increases in custom infusion set sales and new custom oncology sales in 2009 compared to 2008. We expect comparable to slightly lower custom critical care sales in 2009 compared to 2008 because of higher unit volumes expected in the fourth quarter of 2009 that should offset the lower unit sales in the first nine months of 2009.
Our standard oncology product sales were $1.6 million in the third quarter of 2009 compared to $0.9 million in the third quarter of 2008.
Other revenue consists of license, royalty and revenue share income and was approximately $0.1 million in the third quarter of 2009 and $0.4 million in the third quarter of 2008. We may receive other license fees or royalties in the future for the use of our technology. There is no assurance as to amounts or timing of any future payments, or whether such payments will be received.
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