Profile: ICU Medical Inc (ICUI.O)

ICU Medical, Inc. is engaged in the development, manufacture and sale of disposable medical connection systems for use in vascular therapy applications. The Company’ devices are designed to protect patients from catheter-related bloodstream infections and healthcare workers from exposure to infectious diseases through accidental needlesticks. It is also engaged in the production of custom intravenous (I.V.) systems, critical care medical devices, including catheters, angiography kits and cardiac monitoring systems. The Company designed CLAVE to eliminate needles from certain applications in acute care hospitals, home healthcare, ambulatory surgical centers, nursing homes, convalescent facilities, physician’s offices, medical clinics, and emergency centers. The principal products that it has introduced include Spiros Closed Male Connector, Genie Closed Vial Access Device and a line of custom I.V. therapy sets designed for use in Oncology. It also includes products, such as DyePod Contrast Management System, TEGO Hemodialysis Connector, a new Y-CLAVE connector with integral check valve and the Orbit 90 diabetes infusion set. The Company sells its products to I.V. product manufacturers, independent distributors and direct sales to the end user. Hospira, its largest customer, accounted for 69% of its revenues during the year ended December 31, 2008.

Intravenous Products

The CLAVE consists of a cylindrical housing, which contains a silicone compression seal and an internal blunt cannula. Emergency medications and I.V. fluids can be administered through the CLAVE by using a standard syringe without a hypodermic needle attached. The CLAVE can be used with any conventional peripheral or central vascular access systems, both for venous and arterial applications. The Y-CLAVE is designed to be integrated directly into primary and secondary I.V. sets. The Y-CLAVE will not replace CLAVE products used in non-piggyback connections. The Y-CLAVE is marketed to I.V. set manufacturers, such as Hospira, to build directly into their I.V. sets or used by the Company in its custom I.V. sets.

The MicroCLAVE is smaller than the standard CLAVE but is functionally similar. The MicroCLAVE has a feature where upon disconnection of an I.V. administration set or syringe, there is a neutral displacement of fluid. The MicroCLAVE is marketed as an extension of the CLAVE product line for use where the infection control, neutral displacement and saline flush features are advantageous. Under an agreement with Hospira, the Company manufactures new custom I.V. sets for sale by Hospira, and the two companies jointly promote the products under the name SetSource. The CLC2000 is a one piece, swabbable connector used to connect I.V. lines to catheters, which is engineered to prevent the back-flow of blood into the catheter. The CLC2000 does not permit the use of needles. The CLC2000 also contains no natural rubber latex. The CLC2000 is used on central venous catheters where catheter occlusion is most prevalent.

Critical Care Products

On May 1, 2005, ICU Medical, Inc. acquired Hospira’s Salt Lake City manufacturing facility and entered into a twenty-year manufacturing, commercialization and distribution agreement with Hospira, under which it produces for sale, to Hospira, substantially all the products that Hospira had manufactured at that facility. The critical care products the Company manufactures include invasive hemodynamic monitoring systems that are used to monitor cardiac function and blood flow in critically ill patients. They include all components of the invasive monitoring system, except capital equipment, such as computers and monitors, which continue to be manufactured elsewhere by Hospira. The products the Company manufactures at its Salt Lake City facility include Pressure monitoring devices, Blood sampling systems, Angiography kits, Advanced sensory catheters, Pulmonary artery thermodilution catheters and Multi lumen central venous catheters. The Company manufactures all critical care products sold by Hospira in the United States and all catheters sold by Hospira outside the United States.

The Company competes with Baxter Healthcare Corporation, B. Braun Medical, Inc., Cardinal Healthcare and Becton Dickinson.