FRISCO, Texas, April 1, 2015 (GLOBE NEWSWIRE) -- According to the Asthma and Allergy Foundation of America, 25 million Americans suffer from asthma (8% of adults, 9% of children). The disease accounts for one-quarter of all U.S. emergency room visits. It is the #1 chronic cause of school absenteeism. The total annual cost of asthma is estimated to be about $18 billion.
OxySure Systems (OTCQB:OXYS) $349 portable Model 615 device delivers medically pure oxygen on demand from two dry powders. OxySure owns a portfolio of patents, protecting its proprietary technology.
OXYS recently announced robust financial and operating results for 2014. Revenues were up 35% to $2.4 million, led by an 83% increase in U.S. revenues.
"We've grown revenues while focusing on building a solid medical device platform to leverage growth opportunities going forward," stated OxySure CEO and Chairman Julian T. Ross in an exclusive interview with Financial Press, "We are now positioned to rapidly grow our direct sales force, expand overseas, launch a direct to consumer campaign and uplist our company to NYSE or NASDAQ."
Q4, 2014 sales grew for the tenth consecutive quarter. Working capital was a surplus of $418,734. Replacement cartridge sales grew to 144% of Model 615s shipped.
"We've recently hired some key people," confirmed Ross, "One of them is Clark Hood, who was VP of Sales for Cardiac Science, one of the biggest Automated External Defibrillator (AED) manufacturers in the world. He is now our VP of Resuscitation Sales."
Mr. Clark has been expanding OxySure's distribution channels targeting public and private institutions including 102,265 educational campuses, 350,735 manufacturing facilities, 350,000 churches, and 950,000 restaurants.
At the same time, OxySure is building out an internal direct sales team. Ross's goal is to have 30 full-time dedicated salespeople in the U.S. by the end of 2015. The sales team will provide support to distributers as well as handle big accounts. In addition, the Company plans a direct to consumer campaign targeting the Asthma market.
OxySure's market is estimated to be ten times larger than the market for AEDs – which have already sold 2 million units in the U.S. The OxySure Model 615 is one quarter the cost of an AED and 300 times more likely to be used. That means strong repeat sales from cartridges. OXYS reported that cartridge reorder sales jumped to 45% of the Model 615 installed base in 2014, up from 39% in 2013.
The Model 615 requires no training, no compressed tanks, no maintenance, and no batteries. You simply twist a dial and the two powders mix, generating oxygen at a steady flow, bridging the gap between the onset of a medical emergency and the arrival of first responders.
"There are two basic markets available for the OxySure portable emergency oxygen device," stated Ross, "The placement market, where the product is positioned in public spaces like schools or airports or manufacturing facilities. And the second currently unexploited market which is the 'at risk' market". That means, people with asthma, people with cardiovascular disease, and so on.
Ross states that asthma patients are a perfect example of a good potential direct to consumer customer.
"Clinical protocols state that if you have an asthma attack, you need two things – an inhaler and oxygen," stated Ross, "The oxygen piece has always been missing. We think we have a role to play in fixing that."
There are currently about 25 million people in the U.S. with asthma. The attack prevalence for that population is 54% - which means a typical asthmatic has a 54% chance of having an asthma attack in the next 12 months.
The US asthma population includes seven million children. OxySure's direct to consumer campaign will target the parents of those children, educating them on the health benefits of having immediate access to medically pure oxygen.
"The campaign will be about awareness and also branding," stated Ross, "We've been selling through distribution channels, relying on word-of-mouth and some trade shows. A direct to consumer campaign has two purposes: to generate sales and to raise awareness of the company and the product. The general heightened awareness will have a positive spill-over effect on the distributors and the direct sales team."
OxySure has recruited Cliff Meidl - a Two-Time Sprint Kayaking Olympian and USA Olympic Team Flag Bearer to be an official spokesman. Meidl suffered a catastrophic construction accident in 1986 when he was a 20-year-old college student. A severe electrical shock put Cliff into a cardiac arrest. First responders were able to revive Cliff through the use of CPR, oxygen and a defibrillator within in minutes, saving his life.
"It is gratifying to know that our technology saves lives," stated Ross, "But there is also a great business opportunity here."
In tandem with its push to increase sales, OxySure is pursuing strategic acquisitions. Ross's goal is to close a first acquisition in 2015, targeting opportunities in synergistic markets, AED or first response companies.
"OxySure is designed to be used while an ambulance is on the way," stated Ross, "So the first responder markets are a natural space for us to be in – and we are interested in migrating our expertise there."
The World Health Organisation estimates that by 2030, respiratory diseases will account for about one in five deaths worldwide.
Recent financial statements confirmed that OxySure's long term debt is down 42% in 2014.
OxySure is currently trading at .78 with a market capitalisation of $21 million.
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