Omran Healthcare manufactures devices used for patient screening and blood monitoring. The joint venture is aimed at the production of automated external defibrillator (AED), used for screening heart patients, which will enter the Japanese market this August.
Omran Healthcare will undertake the marketing and distribution of the product through its healthcare unit, which provides both home use and professional medical assistance.
Cardiac Science is a maker of AEDs, Electrocardiograms (ECG) and other heart related treadmills. Opto Circuits recently formed a wholly owned subsidiary called Opto Cardiac Care by merging the business of its three US based subsidiaries including Cardiac Science Corporation, Criticare Systems and Unetixs Vascular and thus formed a new unit.
The company acquired Cardiac in 2010 for $89 million, while Criticare was bought for $70 million in 2008 and Unetixs was acquired in 2010 for $ 10 million. This comprises the firm's non-invasive segment, which includes patient monitoring systems, stress testors and ECG equipment. Non invasive equipment is a painless and non contact technique of screening patients. The company is optimistic of cutting down its administration costs by nearly 15% in the coming quarters through the consolidation of its non-invasive business.
The invasive segment relates to the surgical part, which consists of stents and drug eluting balloons. The firm is looking to restructure its invasive segment too. It will merge its German based Eurocor GmbH and NS Remedies business into a new wholly owned subsidiary called Opto Eurocor Healthcare, in a bid to increase efficiency in operations .Eurocor was bought for $11 million in 2006, while N S Remedies was bought for Rs 6 crore in 2009.
Investing View: Opto Circuits is basically a pharma based engineering company. It develops and manufacture technologically-advanced medical equipment and devices for modern healthcare.
The EPS for the company stands at Rs 13.08 (adjusted). And the Price-to-Earnings ratio for the company is 21.98 times and the price to book value is at 5.16 times. The company is trading fairly expensive. (All data from EquityMaster.com)
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