Thanks for posting. Very interesting. And its good to hear about the good results youāve been seeing in patients.
Doing a little research on this company (and it may be true for the entire plasmapheresis equipment market), they lock you into their platform and then make very high margins on the āconsumablesāā¦ this is a common business strategy, but from a customer standpoint is far from ideal as there is no price competition on the āconsumablesā. This is one strategy to raise the ābarriers to entryā for potential competitors in this market, but it can also creates a market opportunity for lower priced, standardized equipment. I wonder if any companies are addressing this market. Years ago a company started manufacturing Hewlett Packard - compatible printer cartridges to get around the same issue / business strategyā¦ this was a big, ongoing battle, Iām not sure how it eventually got resolved: HP is blocking third-party printer ink again - The Verge
As they mentioned in this stock analysis site:
Business Model
Haemonetics designs and manufactures blood collection systems, blood processing systems, devices incorporated in blood transfusions and cell processing, as well as related software. It employs a razor + blade model, where Haemonetics sells its customersā plasma collection machines and associated consumables.
Competition
Haemoneticsā key competitors include Diagnostica Stago, Fresenius (FMS), Instrumentation Laboratory (Werfen), LivaNova (LIVN), MacoPharma, MAK-System, Medtronic (MDT), MSoft, Sysmex, Terumo (OTCPK:TRUMF), and WellSky.
In the automated plasma collection market, it principally competes with Freseniusā Fenwal Aurora and Aurora Xi product lines on the basis of speed, plasma yield per donation, quality, reliability, ease of use, services, and technical features of the collection systems and on the long-term cost-effectiveness of equipment and disposables.
In the Blood Center, most donations worldwide are traditional manual whole blood collections and approximately 30% of the Blood Center portfolio competes in this space. There is intense competition in the whole blood business on the basis of quality and price. Main competitors are Fresenius, MacoPharma, and Terumo.
TEG systems compete more directly with other advanced blood test systems, including ROTEM analyzers, VerifyNow System and HemoSonics Quantra. ROTEM and VerifyNow instruments are marketed by Instrumentation Laboratory, a subsidiary of Werfen, and HemoSonics is owned and offered by Diagnostica Stago. In cell salvage, the intraoperative autotransfusion market, competition is based on reliability, ease of use, service, support, and price. For high-volume platforms, each manufacturerās technology is similar and Haemonetics Cell Saver technology which competes principally with products offered by LivaNova, Medtronic, and Fresenius.
Market Share
In Plasma collection, Haemonetics has the leading market position with 75% of the U.S. market for machines and disposables:
Source: SeekingAlpha: https://archive.ph/rHg6M
Interesting equipment details:
The FDA 510(k) Summary: https://fda.report/media/142820/BK200498-Summary.pdf
The IMPACT Clinical Trial Validation Study (FDA filing): https://clinicaltrials.gov/ProvidedDocs/23/NCT04320823/Prot_001.pdf
The Research Study published as a result of the above āIMPACTā validation study: https://onlinelibrary.wiley.com/doi/pdf/10.1111/trf.16389
The Hemonetics PCS2 Operators Manual: http://www.frankshospitalworkshop.com/equipment/documents/automated_analyzer/user_manuals/Haemonetics%20PCS2%20-%20Operation%20manual.pdf
Corporate Annual Report: https://stocklight.com/stocks/us/manufacturing/nyse-hae/haemonetics/annual-reports/nyse-hae-2021-10K-21965962.pdf
Company overview presentation for Morgan Stanley: https://haemonetics.gcs-web.com/static-files/b56e06b2-ffa4-4a52-ab7b-9d94322139e8