LONE TREE, CO--(Marketwired - March 03, 2014) -
Zynex, Inc. (OTCQB: ZYXI
), a medical technology company specializing in the manufacture and sale of non-invasive medical devices for pain management, stroke rehabilitation, neurological diagnostics, and compound pharmacy, announced today that its subsidiary Zynex Medical, recently received its 19th state license for its non-sterile compound pharmacy.
Zynex Medical's compound pharmacy sells non-sterile topical and transdermal pain creams through its existing sales force. The market for pain cream has many similarities to the electrotherapy business, requiring a doctor's prescription and providing a recurring revenue stream. Zynex believes the market for topical and transdermal pain cream represents a $2 billion opportunity in the United States and the Company intends to be licensed in all 50 states by mid to late 2014.
Thomas Sandgaard, Zynex President and CEO, commented, "Compounded, non-sterile topical and transdermal pain creams complement our existing electrotherapy products and further diversify our offerings, allowing us to be a full service, non-invasive pain management company. We introduced topical and transdermal pain creams to our existing Zynex Medical electrotherapy sales force late last year, targeting in particular pain management doctors and physical therapists in the rehabilitation segment, where we already have a strong market presence. We believe this is a great opportunity for revenue growth beyond our traditional electrotherapy products."
Zynex, founded in 1996, operates under five primary business segments: Zynex Medical, NeuroDiagnostics, Monitoring Solutions, International, and Billing and Consulting. Zynex Medical engineers, manufactures, markets and sells its own design of electrotherapy medical devices used for pain management and rehabilitation. Zynex Medical's product lines are fully developed, FDA-cleared and commercially sold world-wide. Zynex Medical also operates a non-sterile compound pharmacy providing topical and transdermal pain creams. Zynex NeuroDiagnostics sells the company's proprietary NeuroMove device designed to help recovery of stroke and spinal cord injury patients, and is expanding into markets for EMG, EEG, sleep pattern, auditory and nerve conductivity neurological devices through product development and acquisitions. Zynex Monitoring Solutions, currently in the development stage, was established to develop and market medical devices for non-invasive cardiac monitoring. Zynex International is dedicated to supporting sales and marketing of Zynex products worldwide through a network of medical distributors. Zynex Billing and Consulting division provides medical billing and consulting service for offices and hospitals.
For additional information, please visit: www.ir-site.com/zynex.
Safe Harbor Statement
Certain statements in this release are "forward-looking" and as such are subject to numerous risks and uncertainties. Actual results may vary significantly from the results expressed or implied in such statements. Factors that could cause actual results to materially differ from forward-looking statements include, but are not limited to, the ability to obtain state pharmacy licenses, the need to obtain additional capital in order to grow our business, our ability to engage additional sales representatives, the success of such additional sales representatives, the need to obtain FDA clearance and CE marking of new products, the acceptance of new products as well as existing products by doctors and hospitals, larger competitors with greater financial resources, the need to keep pace with technological changes, our dependence on the reimbursement from insurance companies for products sold or rented to our customers, acceptance of our products by health insurance providers, our dependence on third party manufacturers to produce our goods on time and to our specifications, implementation of our sales strategy including a strong direct sales force, the uncertain outcome of pending material litigation and other risks described in our filings with the Securities and Exchange Commission including the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2012.