MedClean Technologies, Inc.(fka MCLN)

[stervc]

The importance of MCLN & MDAS Contract…

With my last conversation I had with Scott Grisanti, President and CEO of MCLN, I asked him about the MCLN contract they signed earlier this year with MDAS trading on the NASDAQ at over $22.00+ per share:
http://www.medassets.com/
http://www.reuters.com/article/pressRelease/idUS119193+26-Mar-2009+PRN20090326

Below is the MCLN contract PR with MDAS:NASDAQ to review:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=43346804

I primarily asked him what the big deal about their contract with MDAS was. I told him that MDAS is a big company, but I didn’t see any dollar amount affixed to the contract. I told him that because of no dollar amount being affixed to the contract, it was hard for investors to really see and understand how it would benefit the company.

He explained that the contract was not for a specific dollar amount. He said that the big deal is that Midas (MDAS) have thousands of contracts with hospitals and healthcare providers to improve the financial situation for those thousands of hospitals and healthcare providers. One of the things that all of them will need to have is a means to legitimately dispose of their regulated medical waste (RMW). MDAS can’t do what MCLN brings to the table to provide that service which is why they contracted with MCLN to be their arm for doing such. Below is a link to help understand what is actually classified as RMW:
http://www.h2e-online.org/docs/h2e10steprmw20103.pdf

MDAS would lose customers to other companies without being able to provide this service. MCLN makes MDAS complete by being their arm to reach out to their thousands of clients to provide this service to dispose of RMW. It strengthens MDAS and definitely strengthens MCLN. Their contract with Midas is very big because it has opened the doors to thousands of hospitals and health care providers that will be using their disposal of RMW services through Midas.

With MDAS:NASDAQ
http://finance.yahoo.com/q/pr?s=MDAS
As of December 31, 2008, the company served approximately 125 health systems; 3,300 acute care hospitals; and 30,000 ancillary or non acute provider locations.

From reading below, the American Hospital Association estimates that every hospital will produce approximately 20 pounds of solid waste per patient per day. Of the 20 pounds, the American Hospital Association states that 10% to 12% is considered infectious (or what could be considered RMW). So, on an average, hospitals generate 2.0 to 2.2 pounds of RMW per patient day per day.

http://www.google.com/search?hl=en&source=hp&q=Infectious+waste+management%3A+a+practical+guide+By+Michael+L.+Garvin&btnG=Google+Search&aq=f&oq=&aqi=
(Click on first/top link within the link above and go to page 3 to see below.)


Now read the MCLN PR below that was announced earlier this year…

”MedClean Technologies, Inc. Announces $1 Million Order”
http://www.reuters.com/article/idUS164641+18-Feb-2009+PRN20090218

…a provider of innovative technology and services for onsite treatment and disposal of regulated medical waste (RMW), today announced it has finalized a contract valued at approximately $1 million to provide a turnkey system to a RMW processing provider on a major island in the Caribbean Basin.

This MedClean system includes dual sterilization units, capable of treating 3 million pounds of RMW annually, as well as a high performance, volume reduction shredder. …

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Given the fact MDAS has over 33,000 hospitals/providers that they provide services for, that makes for a lot of room to grow for MCLN considering that they will be the company introduced by MDAS to provide these RMW services to.

So far, they have only 34 current and pending installations, both domestically and internationally, according to what’s in their last 10K. I’m guessing they have more since then, but still I am sure that they are a good distance away from 33,000 installations.
http://knobias.10kwizard.com/filing.php?param=&ipage=6223834&DSEQ=1&SEQ=&SQDESC=SECTION_BODY&exp=

From the DD above and doing research on the costs for RMW, they could easily see $1 million per installation as indicated from their above contract. I won’t even post what their Revenues could be if they capture all 33,000 hospitals/providers that MDAS provide services for; or even capturing a few thousand of them. Keep in mind too that all of those hospital/providers have RMW and on an average of 2.0 to 2.2 pounds of RMW per patient day per day according to the American Hospital Association.

If you do the math, you will see that MCLN has the potential to make hundreds of millions or even billions if they capture the 33,000 hospitals/providers that MDAS are already contracted with. I think patience will pay here with MCLN.

v/r
Sterling