Boston, MA 06/17/2014 (wallstreetpr) – Investment advisor Goldman Sachs Group Inc (NYSE:GS) expects blood management solutions provider Haemonetic Corporation (NYSE:HAE) to make progress in its efforts to cut down costs as part of its long-term plan to achieve share gain in Whole Blood. The company has participated in the recent Goldman Sachs Medical Technology conference represented by its president and CEO Brian Concannon.
While emerging markets and Plasma are providing constant growth verticals, the company has reiterated its opinion that fiscal year 2015 will be a trough one for revenue and improvements can be expected in fiscal year 2016 and afterwards.
Whole Blood
Over the last few years, whole blood material witnessed a decline in utilization. However, the management expressed its confidence of handling these pressures abating during the fiscal year 2016 time frame since it is largely a US phenomena. The brokerage indicated that the company has reaffirmed its long-term commitment as a total blood management solutions provider.
Haemonetic expects to benefit from its capacity to fuel value for both hospital users, as well as, blood collectors to lift its share over time. Goldman Sachs also sees that Goldman Sachs Group Inc (NYSE:GS)’s multiple new product launches are well aligned with the initiatives of hospitals aimed at reducing logistics costs like BloodTrack. The brokerage expects it to continue to expand traction.
The company is likely to face headwinds from pricing and blood usage, though Haemonetic expects the landscape to stabilize since transfusion per 1K of the population is more standardized in tune with global norms.
Emerging Markets
The investment advisor views that the emerging markets offer a meaningful portion of sales upside based on approximately 14% of its sales. The company’s management predicts there is no stopping of continuous growth in the DD% growth range.
Goldman Sachs expects Haemonetic’s diagnostics and cell salvage as the leading product drivers, while the company expects to convert a part of these markets to leuko-reduced blood product since they are the leader in this category.
Plasma
Goldman Sachs Group Inc (NYSE:GS)’s existing base of business is contracted over 80% till early 2019 with market dynamics remaining quite strong. The brokerage views that there is enough opportunity for the company to record upside in the coming years even as the sector grows apart from the improved potential for profitability.
