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Biotech / Medical : ACMI - Accumed Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Ryan Weisman who wrote (1501)	3/6/1998 1:37:00 AM
From: Sigmund	Read Replies (1) \| Respond to of 1894

Good point about the International situation. But the battle with NeoPath internationally is different since they sell the system outright in most cases outside of the U.S. whereas it is pay for use in the U.S., so increased utilization is helpful to the International labs. An interesting question is the degree of fragmentation internationally. The more fragmentation probably the better it is for ACMIC in one sense namely being successful in the sales situation. But fragmentation leads to higher selling expenses. The U.S. has become very consolidated with a large percentage of lab tests done by a very small number of firms with also a shrinkage in the number of establishments. That is why NeoPath favors pay for use rather than outright sale. Otherwise they might sell all the labs in one quarter and what would happen after that? The smaller labs are better prospects for ACMIC. Perhaps Europe has more smaller labs but I am not familiar with the industry structure there. That again is the reason I think that ACMIC should do a proper market analysis. It is only by doing a good job of segmenting the market that a well focused sales strategy can be developed.