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Biotech / Medical : SABRATEK CORP (SBTK)

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To: Madpinto who wrote (23)7/13/1998 10:57:00 PM
From: Mike  Read Replies (1) of 487
 
Does anyone have any information as to how the two contracts will help or hurt earnings? The two contracts awarded over the past couple weeks have been from Premier and Omnicare. The Omnicare contract was a "prime vendor" contract. Both contract are on SBTK's Reocap Flush product line.

The reason why I say "hurt" earnings is due to the potential low margins on this product. There is no question that these contracts have the potential to help sales as long as they are executed right. Can anyone comment on the margins this product has for SBTK. The market may see this lower margin sales as the beginning of the end. So if anyone can make comments it would be greatly appreciated. In addition, can SBTK be a high volume profitable manufacturer?

Comments appreciated,
Mike
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