MTS Medication Technologies: Drug Organization

With its automated medication dispensing systems for long-term care facilities, MTS Medication Technologies Inc. (AMEX: MPP) is in step with the times. Forget about Gerry and The Pacemakers. The new trendsetters for the Beatles generation: MedLocker and the Multi-Dose Punch Cards.

Instead of a British invasion, MTS is expanding from the United States into the United Kingdom and Germany, and also is entering the promising retail and nutraceutical markets. The St. Petersburg, Fla.-based firm’s products include its MedLocker, which securely stores medications, and punch cards, disposable packaging that labels multiple drugs. Most important is its OnDemand systems, which make automated patient packs and dispense patient-specific doses for the right time and day.

MTS’ customers are pharmaceutical suppliers to institutions. Its prescription pill management machines allow pharmacies to automatically or semi-automatically assemble, fill and seal drugs into packaging that represents a weekly or monthly supply of a patient’s medication. In addition to its long-term care and assisted living facilities, MTS also supplies correctional institutions.

More people are getting really old faster than others are spreading into middle age. The U.S. Census Bureau says the total U.S. population is expected to grow at a compound annual rate of 14% between 2000 and 2050; the number of those 65 and over is expected to grow annually at 35%. And the number age 85 and older is expected to surge almost 70% each year. 

That’s a lot of folks, a lot of ailments and more and more drugs, all of which is expected to stoke MTS’ growth. Analyst Glenn Garmont at Broadpoint Capital says the demographics bode well for the company’s two largest customers, Omnicare, Inc. (NYSE: OCR) and PharMerica Corp. (NYSE: PMC), who supply prescription drugs and other services to about 65% of the long-term-care industry. In turn, this should keep MTS’ drug machinery humming.

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