| | Procedural
Trays and Packs. Our 2004 acquisition of the Medsource assets enabled us
to add a new level of service to customers through the distribution of a comprehensive
line of custom procedure packs and trays. MARKETING
AND SALES Target Market/Industry.
Cardiovascular disease continues to be a leading health problem in the
United States. According to American Heart Association estimates, 70 million Americans,
or approximately 24% of the population, have one or more types of cardiovascular
disease. Cardiovascular disease accounts for more than one million deaths annually,
more than 40% of the U.S. total. We derive a majority of our sales revenues from
products used in angiography and angioplasty procedures designed to treat cardiovascular
disease. We believe that the greatest potential to diagnose and treat the disease
comes from the use of transcatheter technologies, meaning products utilizing vascular
catheterization procedures such as balloons, bare metal and drug eluding stents,
and technologies aimed at defect repair. We intend to pursue additional our sales
growth by building on our existing market position in both catheter technology
and accessory products. The global market for transcatheter
products stands at a major crossroad, even when considering the continued dynamic
evolution in vascular stent placement. The core diagnostic and therapeutic applications
for basic transcatheter technologies (balloons, stents and defect repair) are
well established, with the future growth of procedures and products dependent
upon demographic trends. Several companies, however, are researching and developing
new technologies and applications designed to enhance patient outcomes and enable
the treatment of new populations that have been traditionally limited to surgical
intervention. Much of this additional research and development has led to new
or enhanced procedures, devices and drugs designed to treat or prevent cardiovascular
disease. These procedures, devices and drugs include laser angioplasty, atherectomy
procedures and drug therapies. Because these new procedures and therapies do not
involve the use of catheterization, they may either render some of our products
obsolete or limit the markets for our products. However, with the advent of vascular
stents and other procedures, such as discography and kyphoplasty, we have experienced
continued growth in our proprietary inflation technology. We are monitoring trends
in the industry and believe that we are in a position to launch catheters and
accessories to support growing clinical applications. A
large number of current research and development projects focus on improving the
diagnosis of cardiovascular disease, improving the issue of restenosis, and developing
other less invasive alternatives to open-heart surgery. In recent years, researchers
have focused their interests on technologies and products that support the increased
use of transcatheter approaches to reduce the mortality rate of cardiovascular
disease. These new technologies and procedures include drug-coated stents, radiated
stents and balloons, anti-platelet therapy, gene therapy, percutaneous coronary
thrombectomy, and transmyocardial revascularization. One area of specific interest
to us is transradial catheterization, in which a doctor introduces vascular catheters
through the radial artery, allowing a patient’s rapid recovery, which ultimately
reduces total patient cost. We plan to continue to develop and launch innovative
products to support these clinical trends. Market
Strategy. Our marketing strategy is focused on identifying and introducing
a continual flow of highly profitable, differentiated products that meet customer
needs. In order to stay abreast of customer needs, we seek suggestions from hospital
personnel working with our products in cardiology and radiology applications.
Suggestions for new products and product improvements may come from engineers,
sales people, physicians and technicians who perform the clinical procedures.
When we determine that a product suggestion demonstrates
sustainable competitive advantage, meets customer needs, fits strategically and
technologically with our business, and has a good potential financial return,
we assemble a “project team” comprised of individuals from our marketing, engineering,
manufacturing, legal, and quality assurance departments. This team identifies
the customer requirements, integrates the design, compiles all necessary documentation
and testing, and prepares the product for market introduction. We believe that
one of our marketing strengths is our capacity to rapidly conceive, design, develop,
and introduce new products. | |
