REVOLUTIONS MEDICAL CORPORATION

Syringe Market

1 million healthcare workers in the U.S. are stuck with hypodermic needles that may be infected with Hepatitis B, Hepatitis C or HIV.
Over 1000 of them contract serious infections.
Over 80% of these injuries could be prevented.
In some countries as many as 90% of the injections given are unsafe.
24 million people in developing countries around the world are infected yearly.
More than 580 million people in the world are chronic carriers of these diseases.
An estimated 1.3 to 1.6 million die.
Countless others in the private sector including housekeepers, janitors, and trash handlers are not even counted in these statistics.
The medical community was aware of this problem for years.

So why wasn’t a solution put into place ASAP?

Purchasing decisions were made primarily on cost.
Purchasing contracts set up with major group purchasing organizations (GPOs) limited the choices.
Existing syringe manufacturers were reluctant to invest in new designs.
And, why change? They already controlled the industry.

Frontline medical professionals were the first to demand safer syringes.
In April of 1998 the San Francisco Chronicle printed the “Deadly Needle Series”, putting California legislators on notice.
In September, 1998 Cal/OSHA passed the first legislation mandating the use of safety needle products in California.
In November of 2000 President Clinton signed the Federal Needlestick Safety and Prevention Act requiring the use of safety devices.
Purchasing decisions in hospitals are no longer based solely on cost.
Purchasing agents are now required to listen to needlestick committees comprised of medical professionals; and they want something effective.
23 states have passed additional needlestick legislation and 17 states currently have legislation pending.
Group purchasing organizations have been brought before the US senate for their monopolistic practices.
Retractable Technologies filed and prevailed in an antitrust suit against Premier, Novation, and Kendall Healthcare.
The case with the fourth defendant, BD, was settled out of court for $100 million.
These events are causing the major syringe manufacturers to lose their grip on market domination.
The stage is set for smaller manufacturers to enter the market.
Outside the United States markets are beginning their own transition to safety-engineered devices.

The safety needles and syringes market represents a large and growing segment of the healthcare industry. In 1999, total sales of needles and syringes in the U.S. reached $759 million. This figure is expected to increase to $2 billion by 2010.

According to the industry participants in Frost & Sullivan’s study, many believe that safety needles and syringes will eventually represent a majority of the needles and syringes market. The market for safety needles and syringes is expected to grow from 23% in 1999 to a majority of the total needles and syringes market. The number of safety needles and syringes shipped is expected to grow from 900 million units in 1999 to over 10 billion units worldwide by 2010.

Investrend Communications, Inc estimates the number of needles and syringes sold worldwide to be over 24 billion.

The Cost of Change

The cost of needlestick injury follow-up in the U.S. per incident is around $3,000.
Accident follow ups cost the US medical industry $1.2 billion annually.
Annual treatment for contracted diseases in the US is $1.8 billion.
A total of $3 billion is spent annually in the US on needlestick injuries.
This is three times the amount spent on conventional syringes.
And almost 3 times the cost of converting to safety syringes.

The balance of power is in transition, and the stage is set for the right product to gain more market share than has been achievable in recent history.