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Filling the PipelineFilling the Pipeline
March 1, 2005
3 Min Read
.svg?width=1280&auto=webp&quality=95&format=jpg&disable=upscale "MDDI")
Originally Published MX March/April 2005
COVER STORY
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).
Revenue/Expense | 4Q03($ millions) | 4Q04($ millions) | Change(%) | FY03($ millions) | FY04($ millions) | Change(%) |
|---|---|---|---|---|---|---|
Rentel revenue | 161,346 | 196,659 | 21.9 | 582,801 | 726,783 | 24.7 |
Sales revenue | 54,568 | 76,996 | 41.1 | 181,035 | 265,853 | 46.9 |
Total revenue | 215,914 | 273,655 | 26.7 | 763,836 | 992,636 | 30.0 |
R&D expenses | 7,425 | 9,461 | 27.4 | 23,044 | 31,312 | 35.9 |
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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