Wednesday, February 15, 2017
Medication and supply management provider Omnicell, Inc. OMCL recently formed an alliance with West Alabama’s community-based health service provider, DCH Health System. Per the company, DCH has chosen Omnicell IV solutions, which will ensure patient safety and reduce pharmacy outsourcing costs while performing sterile compounding operations.
Omnicell’s full suite of IV compounding technology will be used by DCH. These are i.v.STATION for non-hazardous robotic compounding, i.v.STATION ONCO for hazardous robotic compounding and i.v.SOFT Assist for semi-automated compounding.
This apart, DCH will also implement Omnicell’s latest Robotic IV Insourcing Solution (RIIS). RIIS combines advanced robotic technology, data and trained pharmacy technician staff to form a comprehensive, turnkey package, useful for hospitals to insource their sterile compounding.
In this regard, we note that, over the last three months, Omnicell’s share price more or less steadily outperformed the Zacks categorized Medical Info Systems industry. Currently the stock is up 17.74%, compared with 6.94% gain of the broader industry.
We believe Omnicell's recent acquisitions of Aesynt, MACH4 Pharma Systems and Avantec Healthcare support the company’s three-pronged strategy which covers market expansion through delivery of differentiated solutions, expansion into new markets and expansion through strategic partnerships and acquisition of new technologies. The latest partnership with DCH also should help the company maintain its solid growth momentum.
We note that, Omnicell is progressing well with its three-pronged strategy. The first leg of differentiated products continues to track new customers who adopt G4 platform, Omnicell’s analytics tools and medication adherence solutions. There has been strong adoption of the company’s G4 platform. The second leg of expanding into new markets is driving growth in the Non-Acute Care segment. While the company continues to focus on the Middle East and South Africa, it also sees greater adoption of technologies in other parts of the world, the latest being Australia.
As stated earlier, the third leg of acquisition and partnerships is also progressing successfully. The Aesynt acquisition has started to broaden its product portfolio for point of care and centralized medication management equipment and solutions.
