MCS Medical Compression Systems (DBN) Ltd. (TASE:MDCL) has signed an agreement with New York's Hospital for Special Surgery (HSS) for use of MCS's ActiveCare+SFT non-pharmaceutical, mechanical solution treatment for deep vein thrombosis. HSS is a leading US hospital for orthopedic surgical procedures.
HSS carries out 5,000 procedures a year for which MCS's product is applicable. MCS has conducted clinical trials, which demonstrated that the ActiveCare+SFT eliminates the need for anticoagulant drugs, and all their inherent risks, such as bleeding and cranial hemorrhaging. However, market penetration of the device depends of proving that it is cheaper than the use of drugs.
Many hospitals currently use patented anticoagulant drugs, and the ActiveCare+SFT device is cheaper. However, when the drugs' patents expire and cheaper generic versions of the drugs reach market, it will be harder for MCS to demonstrate the economic viability of its device, and it will have to prove long-term savings.
30 US hospitals currently use the ActiveCare+SFT, including three of the country's top orthopedic hospitals. MCS's revenue rose to $1.5 million for the third quarter of 2010 from $980,000 for the corresponding quarter of 2009 and $1.3 million for the preceding quarter.
MCS's share price fell 0.4% today to NIS 3.93, giving a market cap of NIS 154.8 million.
Published by Globes [online], Israel business news - www.globes-online.com - on December 12, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010