Maxxon are to receive delivery of the first 5,000 batch of its functional 3 cc Vacuum Operated Retractable Safety Syringe ("ReVac"), which is set to spark a price war amongst fellow manufacturers in the Safety-engineered medical devices (SEMDs) arena.
The world market for SEMDs was projected to exceed $1.6 billion (€1.3 billion) last year and is forecast to maintain, near term, a 20 per cent annual growth rate. The Theta Report estimated the number of needles and syringes sold in the US and international market, combined, should exceed 20 billion units in 2006.
In the US, the safety needles and syringes market is expected to generate approximately $693 million in revenues in 2006, representing 66 per cent of the total needles and syringes market a compound annual growth rate of 21.7 per cent.
The 5,000 lot is intended for the US FDA 510K Application for the syringe and are to be delivered by medical safety and drug delivery manufacturer Global Med Tech no later than March 31, 2006.
Maxxon's 3cc safety syringe is designed as a single-handed, vacuum- operated safety syringe that retracts the used needle into the syringe after use. The product works on a vacuum principle, where pressing the plunger creates a vacuum.
When the plunger reaches the bottom, the needle is captured. A further push on the plunger breaks the seal, and the needle retracts into the plunger barrel. The vacuum is maintained, so the needle cannot be removed from the plunger.
Maxxon said its business strategy would mean it would market itself as a growing SEMDs designer, manufacturer and distributor that creates innovative SEMDs, which it believes would have a price advantage over its competitors.
Currently, Johnson & Johnson, Becton Dickinson and Kendall Healthcare, a Tyco International Company, are among the market leaders.
Maxxon added that it was prepared to distribute the product directly, or form a strategic alliance with a major distributor, upon US FDA 510K Application acceptance.
"The design process time frame was expanded to ensure that the design submitted provides Maxxon the best chance possible for approval, a lesson learned from our past experiences," Ron Wheet, said president and CEO of Maxxon.
The Occupational Safety & Health Administration estimates that 8 million workers in the health care industry and related occupations are at risk of occupational exposure to bloodborne pathogens, including HIV, Hepatitis (Carried by at least 4 million Americans) and others.
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 US reached a record high of $759 million. This figure is expected to increase to $1.05 billion by 2006.
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 by 2005.
The market for safety needles and syringes is expected to grow from 23 per cent in 1999 to 66 per cent in 2006 of the total needles and syringes market.
In 1999, the US safety needles and syringes market generated $175 million in revenues and is expected to generate approximately $693 million in revenues in 2006, representing a compound annual growth rate of 21.7 per cent.