Making parts for other manufacturers is paying off for San Clemente-based ICU Medical Inc.
The maker of devices used in vascular therapy, oncology and critical care had its third-quarter results enhanced by outperformance in its “original equipment manufacturer” category, something that Chris Lewis, an analyst with Newport Beach-based Roth Capital Partners LLC, discussed in a research note.
Original equipment manufacturers make parts or subsystems used in other companies’ end products. Irvine-based patient monitor maker Masimo Corp. is another noted local company that does similar work.
“ICU’s [original equipment manufacturer] segment has shown no signs of slowing down this year,” said Lewis, mentioning that company management noted the segment has grown, even though ICU is cautious about its longtime primary customer, diversified healthcare company Hospira Inc. in Lake Forest, Ill.
ICU is making moves to diversify its business. The company said during its earnings call this month that it’s entering a long-term supply agreement with Japan-based Terumo Corp.
Terumo, owner of Tustin-based device maker MicroVention Inc., will be carrying ICU’s entire product portfolio, including intravenous therapy and oncology.
“We see this positive development as a meaningful medium- to long-term growth opportunity for [ICU],” Lewis said, adding that the deal diversified the company’s business in order to cut off reliance on Hospira over time.
He also mentioned ICU’s October agreement with Mundelein, Ill.-based Medline Industries Inc. ICU will be an original equipment manufacturer of Medline’s SwabCap and SwabFlush products, which are designed for safety and protection of intravenous catheters.
ICU reported an adjusted third-quarter profit of $16.6 million, exclusive of nonrecurring charges. Wall Street had expected the device maker’s profit to come in at $13.4 million. Nonadjusted net income came in at $16.3 million.
TherOx Request Approved
Irvine-based TherOx Inc. received an investigational device exemption approval from the Food and Drug Administration to conduct a confirmatory safety study of a second-generation device that delivers the company’s Supersaturated Oxygen therapy for treating heart attack patients.
The study will have 100 patients and is being done to support TherOx’ premarket approval submission to the FDA.
“In multiple peer-reviewed studies, we have found the infarct size reduction achieved by [Supersaturated] was clinically significant compared to [percutaneous coronary intervention],” said Simon Dixon, a study investigator and chair of cardiovascular medicine at Beaumont Hospital Royal Oak in Royal Oak, Mich.
TherOx says Supersaturated is designed to provide interventional cardiologists with the first treatment option beyond percutaneous coronary intervention to salvage muscle in heart attack patients.
REIT Buys in Wisconsin
Lake Forest-based Summit Healthcare REIT Inc. bought four assisted-living and memory care facilities for $18.4 million.
The properties are in Green Bay and Appleton, Wis., and have 125 units combined. They’re leased to an affiliate of Eugene, Ore.-based Compass Senior Living LLC.
Summit is a publicly listed, nontraded real estate investment trust with a portfolio that includes investments in 25 long-term, triple-net-leased healthcare properties.
Metagenics Names CEO
Aliso Viejo-based Metagenics Inc. named Brent Eck its new chief executive. He replaces Fred Howard.
Eck comes to Metagenics, a maker of nutrition and wellness products that serves more than 75,000 healthcare provider clients, from Fresenius Kabi AG, a global healthcare company that makes clinical nutrition products. He most recently served as Fresenius Kabi’s executive vice president with responsibility for U.S. sales, marketing and business development.
Eck received a bachelor’s degree in mathematics and computer science from Loyola University in Chicago.
Awards
Chris Cruttenden, president of Newport Beach-based healthcare technology company Safety Net Connect, and George Carpenter, chief executive of Aliso Viejo-based neuroscience company CNS Response Inc., received awards at a ceremony presented last month by the Santa Ana-based Adaptive Business Leaders Organization. Cruttenden, Safety Net Connect and Dr. Paul Giboney, director of specialty care for the Los Angeles County Department of Health Services, shared an award for developing eConsult technology to increase specialty care access for safety-net patients. Carpenter and CNS received an award for CNS’ Psychiatric Encephalographic Evaluation Registry, which doctors developed to provide objective information about medication response for similar patients.
