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Filling the Pipeline |
Published: March 1, 2005
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Filling the Pipeline
Originally Published MX March/April 2005
COVER STORY
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Return |
With increased R&D spending made possible by its successful initial public offering in February 2004, Kinetic Concepts Inc. (KCI; San Antonio, TX) is moving to expand its leadership in the fields of advanced wound care and therapeutic surfaces (see Table I).
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Revenue/Expense
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4Q03
($ millions) |
4Q04
($ millions) |
Change
(%) |
FY03
($ millions) |
FY04
($ millions) |
Change
(%) |
| Rentel revenue |
161,346
|
196,659
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21.9
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582,801
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726,783
|
24.7
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| Sales revenue |
54,568
|
76,996
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41.1
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181,035
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265,853
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46.9
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| Total revenue |
215,914
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273,655
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26.7
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763,836
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992,636
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30.0
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| R&D expenses |
7,425
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9,461
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27.4
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23,044
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31,312
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35.9
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| Table I. Revenue and R&D investment at Kinetic Concepts Inc. for the quarters ending December 31, 2003 and 2004 (4Q03, 4Q04), and for the company's fiscal years ending on the same dates. |
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The star of KCI's business in advanced wound-care systems is the company's proprietary Vacuum-Assisted Closure (VAC) technology. The success of the VAC technology—which accounted for just over 70% of the company's revenues in 2004 and nearly all of its meteoric sales growth since 2000—helps to explain why investors have put their dollars behind KCI's future.
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