Profile: Medical Action Industries Inc (MDCI.OQ)

MDCI.OQ on NASDAQ Stock Exchange Global Select Market

20 Aug 2014
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Medical Action Industries Inc. (Medical Action), incorporated on April 1, 1977, develops, manufactures, markets and supplies a range of disposable medical products. The Company’s products are marketed primarily to acute care facilities in domestic and certain international markets. The Company’s product portfolio includes custom procedure trays, minor procedure kits and trays, operating room disposables and sterilization products, patient-bedside products, containment systems for medical waste and laboratory products. It also offers original equipment manufacturer (OEM) products under private label programs to supply chain partners and medical suppliers. Medical Action’s manufacturing, packaging and warehousing activities are conducted in its Arden, North Carolina, Clarksburg, West Virginia, and Gallaway, Tennessee and Toano, Virginia facilities. The Company’s products are divided into seven categories: Custom Procedure Trays, Patient Bedside Products, Minor Procedure Kits and Trays, Containment Systems for Medical Waste, Operating Room Disposables and Sterilization Products, Dressings and Surgical Sponges, and Laboratory Products. On August 27, 2010, the Company completed its acquisition of AVID Medical Inc. (AVID).

Custom Procedure Trays

The Company assemble disposable custom procedure trays for acute care hospitals and integrated delivery networks (IDNs), free standing surgery centers, government hospitals and medical treatment centers, and organ and tissue procurement agencies. Its custom procedure trays are utilized in all areas of the hospital including; surgery, labor & delivery, cath labs, radiology, robotics and special procedures. It manufactures a range of trays including custom anesthesia and wound care trays, cardiac, gynecologic, lap gastric, orthopedic, tissue procurement, transplant, trauma and urology trays.

Patient Bedside Products

The Patient Bedside Products category includes wash basins, bedpans, pitchers and carafes, urinals, and emesis basins. Wash basins are used in both hospital in-patient setting, as well as in nursing homes and other long term convalescent care applications, polypropylene wash basins come in a range of sizes and colors. Washbasins are available in single patient/disposable, autoclavable plastic, and stainless steel designs.

For immobile patients bedpans come in conventional, over the commode seat, stackable and pontoon styles. Polypropylene bedpans come in a range of sizes and colors. Bedpans are available in single patient/disposable, autoclavable plastic, and stainless steel designs. Pitchers and carafes are primarily injection molded from durable polypropylene and include ice guards, cup covers, hinged lids, and graduations. For immobile patients urinals are made in a range of designs. Differing versions accommodate male and female anatomy. Urinals are made from translucent polyethylene which facilitates measuring and visualizing contents. Emesis basins are utilized in many health care settings and are used for containing fluids and tissues, measuring output, instrument passing, and routine oral care. Emesis Basins are available in single patient/disposable, autoclavable plastic, and stainless steel designs in sizes ranging from 400 cubic centimeter (cc) to 1700 cc sizes.

Minor Procedure Kits and Trays

The Company offers one-time use kits and trays which are used for a range of minor surgical and medical procedures. Kit components are determined by the procedural requirements and might be customized to accommodate individual hospital protocols and preferences.

The intravenous administration of fluids and medications is done through an I.V. catheter or needle which is inserted into a peripheral vein. The components include a tourniquet, antiseptic ampule or swab, gauze, surgical tape, and a dressing. During the fiscal year ended March 31, 2011 (fiscal 201), I .V. Start Kits accounted for 9% of the Company’s total net sales.

Central line dressing trays are used to provide cleansing and dressing placement at the site of a central venous catheter, which is placed in a vein in the patient’s chest area and is used for the infusion of fluids and medications. The components include an antiseptic ampule or swabs, gloves, gauze tape and a transparent dressing. The Company’s Central Line Dressing Trays are marketed under the ActaSept and Cepti-Seal brands.

Post procedural suture removal is a medical procedure commonly performed in physicians’ offices, outpatient settings, and hospital emergency rooms amongst other acute and alternate care settings. The procedure requires precise instruments for grasping and cutting fine sutures. The suture removal tray components include Littauer scissors, alcohol prep pads, and metal or plastic forceps.

Laceration trays are used to facilitate closure of lacerations and other deep wounds. Its use is concentrated in hospital emergency rooms although they are sold in both acute and alternate care settings wherever emergency care is provided. The components are disposable instruments, including needle drivers, forceps, scissors and hemostats, as well as drapes for creation of a sterile field, gauze and syringes and needles for administration of a local anesthetic.

The Company offers a range of disposable needle holders, hemostats, various procedural scissors, scalpels and forceps. These instruments are available in stainless steel, bent wire, and plastic versions. They can be purchased in bulk, packaged sterile as individual instruments, or combined in custom sterile instrument trays.

Containment Systems for Medical Waste

The Company’s infectious waste collection bags, known as biohazard bags or red bags are constructed from resins with reinforced seals for puncture resistance to reduce the risk of leakage. The bags come in a range of sizes, and are red, and are clearly labeled with the international biohazard symbol. Autoclave bags are designed to survive the heat generated in a steam autoclave and are used to contain infectious waste through steam sterilization and disposal.

Non-infectious medical waste and trash are collected, stored, transported and disposed of in a separate waste stream from potentially infectious or biohazardous waste. The Company’s non-infectious medical waste bags come in a range of sizes, materials, mil thicknesses and seal configurations to isolate the range of non-infectious medical waste generated at health care provider sites from collection to disposal.

Waste contaminated with chemotherapeutic agents must be disposed of in a separate waste stream from normal infectious and non-infectious medical waste due to the toxic nature of many of these agents. The Company’s chemotherapy waste containment bags and sharps containers are made of durable plastic resins for the collection and containment of chemo waste through disposal.

Infectious and non-infectious reusable laundry and linen must be collected in specifically designed and clearly labeled receptacles and be segregated from the infectious and non-infectious medical waste streams. The Company offers laundry and linen containment systems consisting of hamper style receptacles and disposable laundry and linen receptacle bags for the collection, storage and transportation of infectious and non-infectious laundry and linen.

The laboratory specimen transport bags are used to collect, transport and contain tissue samples and other patient specimens obtained from examinations, diagnostic, or surgical procedures. The bags feature a specimen compartment and documentation pouch to insure that specimens and paperwork do not become separated during transport.

The patient belonging bags are used to collect and transport patient belongings from admission to discharge. The bags come in a variety of sizes, and thicknesses, and utilize a combination of handle, drawstring closure, and zip closure designs. These bags are often customized with hospital or healthcare facility logos and designs.

The Company’s containers comes in a range of sizes and configurations and are constructed from resins protecting the public and health care workers from accidental stick injuries and potential transmission of pathogens in blood and body fluids. These containers are designed to be puncture resistant and to have torturous path means of egress once a contaminated device is placed inside.

The equipment dust covers are used for the protection of hospital equipment, which is non-sterile. They provide a dust and dirt barrier for equipment that is stored between procedures.

Operating Room Disposables and Sterilization Products

The Company’s range of absorbent cotton operating room towels are used during surgery for drying hands, rolled up for propping instruments, on back tables and mayo stands for absorbing fluids, around the incision site for absorbing blood and to allow the surgeon to clip tubing and instruments close to the surgical site during the surgical procedure. Operating room towels are sold in sterile packaging for single (disposable) use and as a non-sterile component to be used with other health care companies’ products, primarily surgical pre-packaged procedure trays.

The surgical marking pens are used for marking the patient’s skin prior to making a surgical incision, as well as to address wrong site, wrong procedure surgery. The pen barrel fits comfortably in the surgeon’s hand and is made with gentian violet color ink.

Red plastic boxes manufactured from medical grade materials are designed to resist breakage and punctures. They are produced with a range of designs, including surgical grade magnets in order to facilitate sharps disposal. The foam blocks and foam strips allow for varying count capacity and designs.

The Company’s disposable surgical light handle covers acts as a sterile barrier on surgical light handles in the operating room. Light Shields are manufactured of a heavy gauge flexible plastic for the optimum assurance of a sterile barrier.

The Company offers its customers the ability to purchase multiple products packaged with its needle counters. It has the flexibility to package many different kits to individualize a hospital’s requirements.

Surgical headwear and shoe covers are worn by operating room and other critical care personnel these items prevent contamination of sterile and clean environments from dust and other contaminants, as well as protection of health care worker apparel. Bouffant caps made of lightweight spunbond polypropylene and surgeon’s caps made of Kaycel are comfortable and absorbent. Shoe covers are made of durable polypropylene and are available with a skid resistant coating.

The Company’s line of disposable isolation gowns are used to prevent contamination of health care worker apparel during a variety of medical procedures. They are available in yellow fluid resistant spunbond cloth and impervious poly coated spunbond configurations.

Sterilization pouches are used to house instruments during the sterilization process and maintain sterility of the instrument until it is needed. The pouches are used in hospital central supply, operating rooms and in physicians’ and dentists’ offices as well as in any environment where sterile instruments are needed. There are three different styles of pouches available-self seal, heat seal and rolls. The self seal is already sealed on three sides and includes a peel back adhesive strip on the bottom of the package, which when folded over would seal the package. The second type is heat seal, which is also sealed on three sides but needs a heat sealer to seal the fourth side. The Company also markets a roll product, where the user can pull as long a pouch as needed and then seal each end of the pouch.

Sterilization monitoring products are printed paper and chemical devices used to measure certain necessary parameters within a sterilization cycle. Predominate users include the hospital operating room which often houses steam sterilization units for unanticipated needs while cases are in progress, and the central sterile department which cleans, packages and sterilizes the bulk of reusable surgical supplies.

Patient Aids are used to assist the mobility of patients after injury, surgery, or to improve mobility of the elderly patient population. These devices are primarily fitted and dispensed in the hospital, surgery center and physician office setting.

Crutches are lightweight aluminum adjustable patient crutches complete with tips and pads. It is offered in a range of sizes, including child, youth, adult, and tall adult. It is used to assist mobility in the event of a leg, foot or ankle injury.

Walker are available in a one-button, two-button, and a wheeled version that facilitates folding of the walkers for utilization, storage and transport. It is used to assist patient mobility for both the short and long term. Canes are used to assist patient mobility for both the short and long term. Skid resistant patient slippers available in a full range of sizes from infant, toddler, youth, to adult (from small to XXL). It is used to prevent slipping and to provide warmth and comfort in both acute care and long-term care market settings.

Dressings and Surgical Sponges

The Company provides many sizes and varieties of dry burn dressings. Dry burn dressings are composed of multiple layers of folded gauze that are typically customized for individual hospitals as to size, weave, folds, and stitching.

Laparotomy sponges are designed for use during surgical procedures in hospitals and health facilities. They are single use and made of gauze and sold in varying sizes and utilized for a multitude of purposes. Laparotomy sponges cover exposed internal organs, isolating them from the part of the body being operated upon. They also absorb blood and act as a buffer between medical instruments and the skin, thereby reducing trauma to the skin tissue caused by the medical instrument. Laparotomy sponges are sold in sterile packaging or as a non-sterile component to be used with other health care companies’ products, primarily surgical pre-packaged procedure trays. The Company’s laparotomy sponges contain an x-ray detectable element and loop handle in order to facilitate easy counting and identification in the operating room.

The Company’s range of specialty surgical sponges is an extension to its laparotomy sponge product line. They are single use and made of gauze and sold in varying sizes and shapes. The design of these sponges is tailored to specific surgical applications for which a standard laparotomy sponge is sub-optimal. The two classifications of specialty surgical sponges include specialty sponges for open surgical procedures and endoscopic specialty sponges.

Gauze sponges are used in the operating room, as well as throughout the hospital. They are also used extensively throughout the alternate care market, including physicians’ offices, health clinics, and dentists’ offices and in veterinary practices. The Company also introduced gauze fluffs, which are pre-folded gauze sponges used for compression and absorption of blood and other fluids.

The Company’s line of sponge counter bags is designed to facilitate and improve the post-procedural counting of surgical sponges. Peri-operative nursing protocol calls for a systematic count of used and unused sponges and instruments pre and post surgery to insure that foreign bodies are not left in the body cavity. The Company’s Sponge Counter Bags are clear faced opaque backed plastic bags with up to five sponge or 10 gauze compartments. The compartments act as fluid receptacles while providing visualization of used sponges for fast and accurate post surgical counting. When used in conjunction with the Safe-T-Count gloves, the sponge counting procedure is even safer, as it counts five sponges and reduces airborne contamination.

Net, Padding and Wound Care includes Tubegauz brand and SePro value brand elastic nets, which are tubular bandages used for dressing retention. This category also includes Tubegauz brand tubular gauze, which is used to bandage fingers, toes, hands, or other areas that require wrapping to bodily contours. Padding products are used as a protective cushioning material for sensitive areas, and are sold in styles that offer characteristics, such as being mold-resistant, water-repellant or designs for improved air circulation.

Laboratory Products

Petri Dishes are used in the laboratory to culture microorganisms. Specimen Containers are used for the collection and transportation of fluid and tissue samples. Polypropylene specimen Containers are available in several sizes and styles including screw top, snap cap, and the patented ClikSeal for insuring sample security and leak resistance during collection and transport. A sterility seal, clear and accurate graduations, and patient identification label with mandated Patient ID information are typical features of specimen containers.

Commode Specimen Collectors are used for the collection of and measurement of stool and urine samples. Injection molded commode collectors fit securely on standard toilets and allow for collection and quick visualization, measurement and disposal. Several versions are available that can be sealed for transportation to the laboratory for analysis.

Triangular Graduates are used for measuring liquid intake or output, triangular graduates are made from either clear polystyrene or translucent polypropylene. The containers are graduated in 25cc and .5 ounce increments, up to 1000 cc’s and 32 ounces. The triangular style provides measuring ease, visualization of contents and comfortable handling.

Tri-pour Beakers are used in hospitals, clinics, laboratories and nursing homes for accurate drip-free mixing and or pouring of liquids utilizing the beaker’s three pouring spouts. Tri-pour beakers are made from translucent polypropylene and are resistant to commonly used acids, alkalis, solvents and reagents and are autoclavable. Sizes of the beakers range from 50ml to 1000ml and each beaker is graduated in increments of 10, 20 or 50ml. Paper lids are available for each size of beaker.

The Company competes with Cardinal Health, Inc., the Kendall Company, Medline Industries, Inc., DeRoyal, Inc., Mabis, DMI Healthcare, Minigrip, Inc., Heritage Bag Company, Pitt Plastics, Medline Industries Inc., Tri-State Hospital Supply, Becton, Dickinson and Company, Devon Industries, Inc., Betras Plastics, Kord Products Inc., Covidien Industries, Inc, and Parter Medical Products, Inc.

Company Address

Medical Action Industries Inc

BRENTWOOD   NY   11717
P: +1631.2314600

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