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Omnicell in Arab Health Conference

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Omnicell Inc. (OMCL - Free Report) , a provider of end-to-end automated solutions for medication-use process, recently revealed that it will showcase its highly regarded G4 know-how as well as other offerings, such as the MTS drug adherence packaging know-how at the Arab Health Conference from January 28 to January 31, 2013. 

Omnicell will exhibit several offerings at the conference including the Savvy Mobile Medication Workstation, the OmniRx G4 Automated Medication Dispensing Cabinet and the Anesthesia Workstation. The offerings of MTS Medication Technologies which will be exhibited at the conference include the Easyblist product line. 

The 2013 Arab Health Conference is the most prominent yearly healthcare meeting in the Arab world. Omnicell’s participation at the conference is bolstered by its regional office in Dubai which provides training and other facilities to its customers in the region. 

Omnicell serves a niche market that is expected to grow further. Its inroad into the non-acute care market after acquisition of MTS Medication has helped the company develop a wider revenue base. Given the high profitability and under-penetration of the non-acute market, the buyout appears to be a rational and lucrative opportunity to support long-term growth.

Further, the shortage of nursing facilities in the U.S. should drive demand for automated solutions for medication and supply solutions. The company is on a deal winning spree as a rising number of institutions switch over to the automated mode.

We note that the international market remains largely under-penetrated. Omnicell’s continuous attempts to expand its geographical footprint should yield positive results.

However, lower capital expenditure by hospitals as they battle reimbursement cuts and budget constraints remains a looming concern for Omnicell. The company also faces intense competition in the medication management and supply chain solutions market from major players such as CareFusion Corporation and McKesson Corporation (MCK - Free Report) .

We believe that Omnicell, through its attractive growth prospects and a three-pronged strategy of domestic expansion, selective acquisitions and targeted international expansion, is poised to accelerate growth. The stock carries a short-term Zacks Rank #3 (Hold).

HMS Holdings Corp. (HMSY - Free Report) is a Zacks Rank #1 (Strong Buy) stock which is expected to do well.

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