West Perth company Eastland Medical Systems achieved a major milestone this month with its first substantial export order confirmed for its ClipOn hypodermic needle.
West Perth company Eastland Medical Systems achieved a major milestone this month with its first substantial export order confirmed for its ClipOn hypodermic needle.
But behind the good news lies a highly competitive international market for ‘safe’ needles, with no less than nine listed Australian companies chasing a share of the $5 billion global syringe market.
Increasing regulation has opened opportunities for developers of safe syringes but to date there has been little evidence of sustainable sales.
Another Perth company trying to push into the market is bioMD, recently granted a United States patent for its pre-filled safety syringe.
Sydney company Unilife Medical Solutions (formerly Unitract) also has a strong Perth connection, after being floated by West Perth advisory firm Grange Consulting.
Grange director David Riekie was until recently chairman of Unilife, stepping aside in April in favour of Sydney-based Jim Bosnjak.
Other Australian companies active in this sector include Ritract, OMI and Norwood Abbey, all competing against international firms like Texas-based Retractable Technologies Inc, which describes itself as a market leader.
Retractable posted record sales of $US24 million in 2005, an increase of 12 per cent, but still incurred a trading loss, highlighting the challenge facing new entrants.
Like most of its competitors, Eastland is developing a range of products, including its ClipOn needle and retractable syringes.
The export order, for five million ClipOn needles, was placed by UK company Response Medical Equipment, which indirectly is 32 per cent owned by Eastland.
Eastland has acquired several medical products distributors in the UK, South Africa and recently Perth, via the $2.2 million purchase of Westcoast Surgical & Medical Supplies.
These distribution businesses provide revenue while Eastland continues clinical evaluations and regulatory approvals for its safe needles.
The company has ambitious plans, announcing recently that the capacity of its planned South African factory would be increased to 100 million units annually.
Unilife is developing syringes to meet the needs of different market segments, including vaccinations, clinical and injecting drug users.
It is currently seeking regulatory approval in Canada and Europe for its lead product, the 1ml Unitract syringe.
Ritract is more advanced in its plans, claiming to be the first Australian producer of retractable safety syringes with regulatory approval to sell in the US, with a first order of 500,000 syringes to generate sales revenue of $A300,000.
