A Medical Device Daily
Zynex (Littleton, Colorado), a provider of pain management systems and electrotherapy products for medical patients with functional disability, reported plans to form two new business units: Zynex Monitoring Solutions and Zynex NeuroDiagnostic.
The proposed new subsidiaries will leverage the core technology in Zynex's existing product portfolio to develop new products for hospitals and clinics, the company said. Zynex Monitoring Solutions and Zynex NeuroDiagnostic are intended to be part of a long-term path of continued growth both domestically and internationally while Zynex Medical, with its electrotherapy products for home-use, continues to serve an increasing number of patients in the rehabilitation, pain management and recovery markets, the company said.
"We intend to create two new subsidiaries to augment our high-growth and profitable electrotherapy business," said Zynex CEO Thomas Sandgaard. "We believe that developing devices for monitoring in the cardiovascular area and devices for diagnosing neurological issues will be complementary to our existing electrotherapy business."
Sandgaard said these anticipated cardiovascular monitoring and neurological diagnosis products are under development. In addition to facilitating the development of new medical devices, Zynex intends to use the new subsidiaries as a platform for potential strategic acquisitions of businesses involved in the cardiovascular monitoring and neurological diagnosis industries.
The company's recent move to its expanded headquarters and distribution center as well as its strong cash flow for the year ended Dec. 31, 2009 has allowed it to pursue these potential opportunities to continue to grow the business and benefit its shareholders, Sandgaard said. "As mentioned previously, we are in the process of significantly increasing our number of experienced sales representatives and expect significant growth in 2010 revenues with our existing electrotherapy business," he added.