July 17, 2012
A Look at Oxysure Systems’ (OXYS) Model 615
OxySure Systems Inc. (OTCBB: OXYS), a medical technology company focused on the design, manufacture and distribution of specialty respiratory and medical solutions, similar to companies like Boston Scientific Corporation (NYSE: BSX) and Oxygen Biotherapeutics, Inc. (NASDAQ: OXBT), has developed a unique product with enormous market potential.
The company’s OxySure Model 615 is a portable emergency oxygen system capable of generating medical grade oxygen on demand without the necessity of storing oxygen in compressed tanks. Instead, the technology generates pure oxygen from two dry, inert powders that are non-hazardous and easy to use and store for long periods of time.
Necessary in Many Environments
OxySure’s Model 615 is a first-in-class technology that could be extremely useful in a vast number of different scenarios. Emergency oxygen during cardiovascular or respiratory distress can help save lives by preserving vital organs or injured areas, while a reduction in emergency room visits could significantly reduce costs for patients, hospitals and insurance companies.
The unit itself is lightweight and does not have any compressed air, making it very safe for use by a lay person. The unit is supremely easy to use and no training is required. Further, no prescription is required for the patient, as the unit is cleared by the FDA for over the counter (OTC) sale. With availability on-site, the technology bridges the gap between emergency onset and the arrival of first responders. A USA Today study has found this gap can be between 6 and 15 minutes, but can be longer depending on city, traffic conditions, time of day, rural areas, and so forth.
The technology is immediately applicable in a number of end markets, including educational facilities, manufacturing facilities, recreational vehicles, restaurants, OSHA-compliant buildings, and the U.S. Federal Government among others. Combined, these customers represent enormous end markets that could translate to hundreds of millions in revenues.
Frequent Usage Relative to AEDs
In addition to numerous end markets, OxySure’s products benefit from frequent usage among its customer base. Emergency medical oxygen can be used in all medical emergencies, ranging from severe heart attacks to treating asthmatic student athletes, making it far more likely to be used relative to other emergency devices, like AEDs that are designed for a single purpose (keeping in mind that in excess of 1.6 million AEDs have been sold and prepositioned in the US alone since 2001).
OxySure also benefits from many protocols and standards requiring the availability of supplemental oxygen. For example, with OxySure meeting the new compliance standards for NATA (National Athletic Trainers’ Association) there is additional opportunity for more frequent usage due to asthma emergencies amongst student athletes. NATA has published a new position statement and protocols for “Preventing Sudden Death in Sports” that covers 10 of the main causes of sudden death in organized sports and physical activity, including asthma and exertional sickling.
According to the OxySure press release on May 8th of this year “The new NATA treatment protocols recommend that ‘supplemental oxygen should be offered to improve the athlete’s available oxygenation during asthma attacks.’ The protocols further stipulate that ‘for breathing distress, the sports medicine team should provide supplemental oxygen to help maintain blood oxygen saturation above 92%.’”
More frequent usage by student athletes may equate to higher recurring revenues for the company. The disposable cartridges containing the dry powders used to create the oxygen must be replaced after each use, which could result in greater revenue per school than just the one-off sale. Multiplied by the various other end markets, the technology should provide a significant recurring revenue stream that could dramatically increase shareholder value over the long-term.
Award Winning Company with Outstanding Technology
OxySure has managed to garner quite a bit of attention already while collecting a number of awards. Most recently the company was named amongst the Dallas Fort Worth Top Public companies for 2011, an accolade that is especially significant considering that Texas is considered to be one of the most competitive business climates in the nation.
Also in 2011, OxySure was chosen from amongst a field of 70+ applicants to present to the MedVentures educational conference hosted in Frisco, Texas. The MedVentures 2011 conference is a regional, early-stage investment and education conference focusing on the rapidly growing medical technology sector. The 70+ applicants represented a record-breaking number of companies vying for the opportunity, making the award especially cherished.
A Great Investment Opportunity
OxySure represents a great investment opportunity for a variety of reasons. By administering oxygen sooner, the technology can help save both money and lives in numerous end markets. Meanwhile, oxygen can be used in a wide array of emergency situations, which means the company’s product is likely to be used more frequently and generate recurring revenue. OxySure is poised to become a standard issue item in all businesses, homes and other public and private venues, just like an AED or a fire extinguisher.
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