Andover Medical, Inc. (ADOV.OB) distributes and markets orthopedic, podiatric, and urology related medical equipment. The company is seeking to take advantage of projected growth and evolving economies of scale arising from consolidation in the procedure specific durable medical equipment (DME) and services segments of the orthopedic, podiatric, and urological physician care markets in the United States. By establishing a nationwide subsidiary network, AMI plans to offer physicians the largest selection of competitively priced brand-name DME, and urodynamic diagnostic and treatment products. These products include devices to aid the recovery from Anterior Cruciate Ligament (ACL) surgery, knee replacements, and hip replacements.
Medical supplies or equipment prescribed by a physician or physical therapists, which is medically necessary for the treatment of an illness, injury, or to prevent a patient’s further deterioration, are called Durable Medical Equipment (DME). DME products are designed for repeated use, and are tools that serve a medical purpose. AMI intends to offer extensive DME product offerings in orthopedics, podiatry, and urology, including post-operative pain management equipment, orthopedic devices, a range of soft goods, functional knee braces and urodynamic devices. These products will be delivered at point of service outlets such as physicians’ offices, clinics, hospitals, nursing facilities, patient homes, and retail outlets. Patients who are prescribed the use of DME can qualify for third party reimbursement.
Orthopedics, urology and podiatry are among the fastest growing segments in healthcare products and services. The “graying” of the population and the increase in the active physical lifestyle of seniors, among other factors, play key roles in this growth. These DME products are most significantly used by baby boomers and seniors that age 65 and over. This senior demographic – expanding rapidly, both in size and in its need for services – has been increasing from approximately 35 million people in 2000, to an estimated 40.2 million by 2010, and eventually to an estimated 71 million people by 2030, representing approximately 20 percent of the U.S. population.
Andover Medical’s strategy is to acquire and consolidate healthcare companies in the fragmented distribution channel for orthopedics, podiatric and urology supplies and services, as well as become a dominant provider in these marketplaces by providing a comprehensive program to dispense DME.
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