Thursday, May 8, 2014

Seeking Alpha: ICU Medical Back At The Drawing Board

After years of under-investment and, in my opinion, complacency regarding its high-quality infusion business, ICU Medical (ICUI) is paying the price. Revenue declined in FY 2013 and likely will decline again in FY 2014. Some of this can be laid on the head of Hospira (HSP), a major customer that has badly mismanaged its infusion/medication management business, but the reality is that ICU Medical has had more than enough time to recognize the issues with Hospira.

Now there's a new sheriff in town, or more accurately a new CEO running the company. Vivek Jain is saying the right things about improving the company's operating performance and increasing its investment in R&D. It also sounds as though management is looking to mobilize that sizable cash hoard. ICU Medical isn't especially well-followed and the company's sluggish near-term growth prospects aren't going to help raise its profile. Even so, I think there's value here and risk-tolerant investors should take a closer look.

Please continue here:
ICU Medical Back At The Drawing Board

No comments: