LONE TREE, CO--(Marketwired - July 15, 2014) -
Zynex, Inc. (OTCQB: ZYXI
), an innovative 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 it has attained compound pharmacy licensing approval in seventeen additional states bringing the total to thirty-six approvals.
Zynex commenced operations of its in-house, non-sterile compound pharmacy in December 2013, providing topical and transdermal pain creams. Zynex-branded pain creams, along with electrotherapy products, offer the market a unique full service, conservative pain management solution. With the recent addition of new states, Zynex is now marketing compound pharmacy pain creams, across 36 states. Zynex estimates that the annual US market for topical and transdermal pain, scar and wound creams represents a $2 billion market opportunity. Compounded pain cream prescribers and specialties include pain management doctors and physical therapists in the rehabilitation segment, anesthesiology, podiatry, orthopedics, rheumatology, and family practices, which are the same target markets for Zynex electrotherapy devices.
Thomas Sandgaard, CEO of Zynex added, "We are very pleased with the progress of our national rollout for the compound pharmacy. The new states nearly double our geographic footprint and we are now seeing a meaningful contribution from this segment, with over 10% of our revenue coming in from compound pharmacy sales during the second quarter. Our efforts to re-position the company for growth over the past several quarters are now showing encouraging results."
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; and the company's proprietary NeuroMove device designed to help recovery of stroke and spinal cord injury patients. 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 and distributes EMG, EEG, sleep pattern, auditory and nerve conductivity neurological devices. 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 need to obtain additional capital or augment our liquidity in order to continue our business, the success of our compound pharmacy and international expansion efforts, 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, 2013.