The U.S. remains the biggest market for makers of medical devices even though in recent years many have shifted focus to emerging markets. According to data from the U.S. Commerce Department, the medical devices market is expected to reach $133 billion by the end of 2016.
In the U.S. there are an estimated 6,500 medical device companies. Many of these companies though are small. According to Commerce Department data, over 80% of medical device
companies in the U.S. have fewer than 50 employees. In fact many of the companies are still in development stage.
However, U.S. based medical device companies have a very good reputation globally. The Commerce Department notes that U.S.-based medical device companies are globally renowned for their innovations and high tech products. The U.S. also sees significant investment in the sector compared to other countries.
The industry had been facing a great deal of uncertainty following the implementation of health-care reforms but now the outlook for the industry has improved.
The improving outlook for the medical device industry augurs well for Wilmington, Massachusetts-based AdvanSource Biomaterials Corporation (OTCQB:ASNB), a developer of advanced polymer materials which provides critical characteristics in the design and development of medical devices.
ASNB’s biomaterials are used in devices that are designed for treating a range of anatomical sites and disease states. The company seeks to leverage its proprietary materials science technology and manufacturing expertise in order to expand its product sales and royalty and license fee income.
This morning, AdvanSource announced that it has signed a multi-year supply agreement with a agreement will provide year-over-
year volume increases of a custom developed polyester urethane product line.
Commenting on the development, Khristine Carroll, SVP of Commercial Operations at AdvanSource, said that the company is very pleased at the partnership it has developed with a valued customer and a leader in the imaging and radiography market.
Carroll further said that the multi-phase agreement again shows ASNB’s ability to work closely with strategic partners to develop novel, value add solutions and targeted material formulations which the company believes assists its customers’ R&D initiatives to bring innovative products quickly to the market.
Carroll added that leveraging its biomaterials expertise to support customers’ challenging development initiatives is the core of ASNB’s business model and the company welcomes such opportunities to support such critical innovations.
Shares of ASNB have been on a tear since August, rising around 800% in that time frame.
Shareholders seem to be excited about the Company’s prospects with shares near their 52-week high at last check.
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