Apr 5 2010
Ingen Provides Tremendous Value to Home Care Providers
Ingen Technologies, Inc. (IGNT) can provide tremendous potential value to home care providers Lincare Holdings (LNCR), Apria Healthcare and Home Diagnostics Inc. (HDIX). Ingen's SMART Nasal Cannula can improve quality care and reduce their costs, while providing investors a unique growth opportunity.
Ingen Technologies, Inc. (Pink Sheets:IGNT), a leading manufacturer of respiratory medical devices, recently announced today that the SMART Nasal Cannula is a featured new product at the upcoming MedTrade convention in Las Vegas from May 10 through May 13, 2010. The Las Vegas MedTrade convention is the largest home health care expo in the world. Ingen is an exhibitor and will be part of the New Product showcase at MedTrade. The SMART Nasal Cannula is the Next-Generation of cannulas that improve oxygen therapy and reduce expenditures.
The home respiratory market is estimated to generate $6 billion in annual sales, with oxygen cannulas accounting for about $500 million per year. The size of the market also continues to grow with more cases of COPD, a demographic increase in those over 65 years old, and a continued trend towards treatment of patients in-home as a low-cost alternative.
Since most of the funding for at-home care comes from Medicare or Medicaid, oxygen equipment providers differentiate themselves based on service more so than cost. However, cost does remain a concern for the providers themselves, particularly as Medicare lowered their national monthly amount for oxygen equipment by 1.5% last year to $173.17 in 2010.
Ingen Technologies' innovative smart cannulas are helping to improve patient care and reduce cost for oxygen providers. The Oxyview is the only cannula with an oxygen gauge that quantifies and confirms the flow of oxygen. Oxyview helps ease patient concerns and reduce home support calls. As a result, the company stands at a unique position within the industry and could redefine the oxygen cannula market.
Companies like Apria Healthcare and Lincare Holdings (LNCR) continue to express the importance of customer care in the highly-competitive oxygen market. With thousands of local and regional providers, a market price set by the government, and a very low barrier to entry, customer care is perhaps the most important aspect of at-home oxygen care. Home care companies compete primarily on the basis of service rather than price, since reimbursement levels are established by Medicare and Medicaid or by individual determinations of private health plans.
Ingen has recently completed many of the preliminary tasks and now expects sales to increase. The potential of their GSA application has opened up the channels which will provide their SMART cannulas to government industries. Ingen has obtained ISO certification and has entered into the international market. While most of its sales right now are to retail consumers, the company has planned to quickly ramp up its efforts to larger at-home organizations as well.
"These facts have created enormous opportunity for Ingen shareholders. A large sales contract is the next step to quickly ramp up revenues and net income. Lincare alone realized more than $1.4 billion in revenues last year from oxygen and respiratory therapy services. They are one of several large companies that have potential for such a compelling value proposition. Potential contracts seem within reach for Ingen in the short term and have greater potential to be very lucrative for the long term," stated Scott R. Sand, Chief Executive Officer and Chairman of the Board.
SOURCE Ingen Technologies, Inc.
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