Specialized Health Products International Inc. (fka SHPI)

[MikeDDKing]

Specialized Health Products Receives Stockholder Approval and Completes Acquisition by C. R. Bard
Friday June 6, 9:00 am ET


BOUNTIFUL, Utah--(BUSINESS WIRE)--Specialized Health Products International, Inc., (“Specialized Health Products”) (OTCBB:SHPI - News), a leading developer, manufacturer and marketer of proprietary safety medical products, today announced that it has completed its merger into a wholly owned subsidiary of C. R. Bard, Inc. (NYSE:BCR - News), a leading multinational medical technologies company, for cash consideration of $68.4 million, or $1.00 per share. The transaction was overwhelmingly approved by Specialized Health Products stockholders at a special meeting held on June 5, 2008, with 90% of the votes cast in favor of the merger.

Specialized Health Products stockholders may refer to the proxy statement delivered to stockholders in connection with the special meeting for information and instructions regarding how and when they will receive their portion of the merger consideration. The proxy statement has been filed with the Securities and Exchange Commission and can be accessed online at www.sec.gov or on the Company’s website at www.shpi.com. Questions from stockholders may be directed to the paying agent, JPMorgan Chase Bank, N.A., by calling [phone].



Contact:
JPMorgan Chase Bank, N.A.
Paying Agent, 800-318-5202

--------------------------------------------------------------------------------
Source: Specialized Health Products International, Inc.

[maryl]

Schedule 14A/April 24, 2008

http://www.sec.gov/Archives/edgar/data/790228/000114420408023891/v111063_defm14a.htm#LineIP

[MikeDDKing]

Bard Signs Agreement to Acquire Specialized Health Products International, Inc.
Monday March 10, 4:33 pm ET


MURRAY HILL, N.J.--(BUSINESS WIRE)--C. R. Bard, Inc. (NYSE: BCR - News) today announced that it has signed an agreement to acquire all the outstanding shares of Specialized Health Products International, Inc. (OTCBB: SHPI - News) for a purchase price of $1.00 per share in cash, totaling approximately $68 million. Bard’s Access Systems subsidiary, located in Salt Lake City, Utah, will assume marketing responsibility for the related products. The company expects to complete the transaction following approval by the shareholders of Specialized Health Products and customary closing conditions, including Hart-Scott-Rodino clearance.

Specialized Health Products manufactures and markets vascular access products, including winged infusion sets, which are used to deliver therapeutic agents through vascular access ports. Many of its devices, including the SafeStep® Huber Needle Set, are designed to reduce the risk of accidental needlesticks for both patients and clinicians. Specialized Health Products is currently an original equipment supplier of winged infusion sets to Bard.

Timothy M. Ring, chairman and chief executive officer, commented, “Infusion sets are an important component of our market-leading vascular access port line and help give Bard a full range of devices for port-based therapies. The SafeStep® technology provides a differentiated approach to reducing needlestick injuries and the associated risk of transmitting blood-borne pathogens. This acquisition represents a good strategic addition to our port franchise.”

Bard’s 2008 financial guidance remains unchanged as a result of this transaction.

C. R. Bard, Inc. (www.crbard.com), headquartered in Murray Hill, NJ, is a leading multinational developer, manufacturer and marketer of innovative, life-enhancing medical technologies in the fields of vascular, urology, oncology and surgical specialty products.

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on management’s current expectations, the accuracy of which is necessarily subject to risks and uncertainties. These statements are not historical in nature and use words such as “anticipate”, “estimate”, “expect”, “project”, “intend”, "forecast", “plan", “believe”, and other words of similar meaning in connection with any discussion of future operating or financial performance. Many factors may cause actual results to differ materially from anticipated results including product developments, sales efforts, income tax matters, the outcomes of contingencies such as legal proceedings, and other economic, business, competitive and regulatory factors. The company undertakes no obligation to update its forward-looking statements. Please refer to the Cautionary Statement Regarding Forward-Looking Information in our December 31, 2007 Form 10-K for more detailed information about these and other factors that may cause actual results to differ materially from those expressed or implied.

SafeStep is a registered trademark of Specialized Health Products International, Inc.



Contact:
C. R. Bard, Inc.
Investor Relations:
Eric J. Shick, 908-277-8413
Vice President, Investor Relations
or
Media Relations:
Holly P. Glass, 703-754-2848
Vice President, Government and Public Relations

--------------------------------------------------------------------------------
Source: C. R. Bard, Inc.

[MikeDDKing]

There hasn't been any news in a while on SHPI. I'm continuing to watch it, however. We have about 7 weeks until the 10-K is filed. That may be the next point where there is news.

Mike

[KauaiPI]

aLOha Mike~thanks for starting this board and mentioning this one on Tim's board. Just in case you don't read that one often;

#msg-25030019

...looking for some advice lol

It looks like the market had already priced in an unfavorable outcome of the lawsuit

BTW I am an owner of TYCO but missed this suit outcome as posted here.

TIA
kp

[MikeDDKing]

It looks like the market had already priced in an unfavorable outcome of the lawsuit. SHPI last traded at $0.885 up $0.055 for the day.

Mike

[MikeDDKing]

Here is the text of the pertinent information from the 8-K:

Item 8.01 Other Information.

In December 2002, Becton Dickinson (“BD”) filed a lawsuit against Tyco Healthcare in the United States Court of the District of Delaware, asserting that Tyco Healthcare’s Monoject Magellan™ safety products infringe upon BD’s U.S. Patent No. 5,348,544 (‘544 Patent), titled “Single-Handedly Actuable Safety Shield for Needles.” Tyco Healthcare is now known as Covidien. Tyco Healthcare developed the Monoject Magellan™ safety products in association with us. We are not a party to the patent infringement lawsuit.

On October 26, 2004, a jury found in favor of BD that Tyco Healthcare’s Monoject Magellan™ safety products willfully infringed the ‘544 Patent. On November 1, 2004, the court entered the judgment in favor of BD. Tyco Healthcare challenged the jury finding in post-trial motions. On March 31, 2006, the court granted Tyco Healthcare’s motion for a new trial on the issue of infringement with respect to the ‘544 Patent.

The new trial commenced on November 27, 2007. On November 30, 2007, a jury found in favor of BD that Tyco Healthcare’s Monoject Magellan™ safety products infringe upon the ‘544 Patent. The court did, however, grant Tyco Healthcare’s motion to dismiss BD’s claims of willful infringement. Tyco Healthcare has indicated that it intends to appeal the jury’s decision following post-trial motions.

Under our arrangements with Tyco Healthcare, Tyco Healthcare has the right to withhold up to fifty percent (50%) of royalties due as an offset against litigation expenses related to charges of infringement by a third party for the manufacture, use or sale of licensed product. This right continues while this litigation is pending. If, as a result of judgment in the litigation or settlement with BD, Tyco Healthcare is required to pay royalty and/or other monies to BD, Tyco Healthcare may thereafter deduct from the amount of royalties due us on unit sales of products alleged to infringe, an amount which is the lesser of all royalties and/or other monies paid by Tyco Healthcare to BD, or fifty percent (50%) of all royalty payments otherwise payable to us. Accordingly, we have previously recorded liabilities for amounts that were our estimate of the portion of costs associated with BD’s suit against Tyco Healthcare that Tyco Healthcare would withhold against the royalties due to us.

As of September 30, 2007, there remained $508,409 of the accrued liability which represented our estimate of the portion of costs associated with BD’s suit against Tyco Healthcare that Tyco Healthcare will withhold against future royalties due to us as of that date. Based upon information available at this time, we anticipate the litigation will continue into our 2008 fiscal year. Moreover, we intend to take a non-cash charge to income of approximately $250,000 during the fourth quarter of 2007, which together with the balance of our related accrued liability, is our estimate of the portion of costs associated with BD’s suit against Tyco Healthcare that Tyco Healthcare will withhold against the royalties due to us through the end of 2008. After this additional accrual, we anticipate our earnings for 2007 will still fall within the range previously disclosed in our financial projections for 2007.

Forward-Looking Statements

The statements contained in this Form 8-K, including but not limited to statements regarding (i) Tyco Healthcare’s intention to appeal the jury’s decision, (ii) our intention to take a non-cash charge to income, and (iii) our anticipated performance against financial goals for 2007 and other statements that are not historical facts, are forward-looking statements and are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, are based on management’s current expectations, and are subject to risks and uncertainties that could cause actual results to vary materially from historical results or those anticipated in such forward-looking statements. We wish to advise readers that a number of important factors could cause actual results to differ materially from those anticipated in such forward-looking statements. These factors include, but not are limited to, significant fluctuations in future operating results due to a number of economic conditions, risks in product and technology development, developments in the litigation between BD and Tyco Healthcare, the effect of our accounting policies and other risk factors detailed in our filings with the Securities and Exchange Commission, including the Company’s annual report on Form 10-KSB for the fiscal year ended December 31, 2006. These forward-looking statements speak only as of the date on which such statements are made, and we undertake no obligation to update such statements to reflect events or circumstances arising after such date.

Mike

[MikeDDKing]

Unfortunately, I sold all of my shares of SHPI today. An 8-K came out this afternoon indicating that TYCO lost their new lawsuit with BD. Here is a link to the 8-K:

http://yahoo.brand.edgar-online.com/fetchFilingFrameset.aspx?dcn=0001144204-07-065438&Type=HTML

This was one risk that I was concerned with with SHPI. According to the 8-K they will take a $250K non-cash charge in Q4 for their share of the legal costs. Tyco has indicated that they intend to appeal the jury's decision.

The bad thing is that ultimately this could mean that Tyco discontinues the Magellan product line. If they lose the product line I believe they will ultimately lose something like $250K in royalty revenue per quarter. Having said that, this could also be settled by a licensing agreement between Tyco and BD so it isn't necessarily a big problem.

I still like the company and may repurchase the stock but I want to wait until the smoke clears before repurchasing.

Mike

[Diabolic]

Excellent opportunity here.

[MikeDDKing]

Here are my answers to your SHPI questions:

1. My read on the call was that they were not sure that there would be a drop but are being conservative. There may or may not be a sequential drop. They did guide for $4.25 - $4.92M in revenue for Q4 vs. $5.1M in revenue for Q3. Note that this will still be a significant increase on a year over year basis.

See this post for more details:
http://investorshub.advfn.com/boards/read_msg.asp?message_id=24760182

2. I think growth will be from all of the sources that you mention. In the next year, EPS growth will be driven by international sales, further organic growth, new products, and cost reductions. I don't like to bank on acquisitions for earnings growth but I think that additional acquisitions are a strong possibility. Their existing intellectual property portfolio has more legs for growth so IMO organic growth should continue to be strong for some time.

3. Med-Design was acquired on June 2, 2006. Med-Design's revenue was roughly half that of SHPI prior to the merger. Med-Design revenue was $1,057,000 for Q1'06. Med-Design was purchased for 21.5M shares which was roughly 32.5% of the outstanding shares immediately after the acquisition. You can read more in the 8-K/A located here:

http://yahoo.brand.edgar-online.com/fetchFilingFrameset.aspx?FilingID=4608753&Type=HTML

Mike

[ghmm]

Mike,

I have a bookmark but sorry to say I am just watching at this point. I tend to pick my press or let the opportunity pass. Plus I still need to do a lot more DD. I have a few starter questions if you think others may benefit from answers:

1-On the call they said about December doing maintenance and basically shutting down. Is a slight drop in revenue all that can be expected or is it actually more significant just the growth will minimize the impact? Any notion for this?
2-Going forward (long-term) is growth more driven by acquisitions, market penetration or new markets (Europe)? I know acquisitions are unpredictable but does history give any idea?
3-Do you have a link/more info for their last acquisition. Specifically what they paid and what revenues were before the acquisition?

Thanks in advance.

[Diabolic]

I took the EPS from the Ibox ;)
Now i understand the potential. thanks

[MikeDDKing]

There is some seasonality in SHPI's business which is why Q4'07 may be slightly lower than Q3'07. Q4'07 will be much better than Q4'06.

Your historical PE is wrong. The trailing 12 months EPS is just under $0.03/share. So, the PE is 30 using a share price of $0.90/share.

As I stated in the following post I'm expecting earnings of $0.08/share next year:

http://investorshub.advfn.com/boards/read_msg.asp?message_id=24742741

IMO $0.08 in earnings next year will give SHPI a share price of $1.60 sometime later next year.

EPS growth will be driven by international sales, further organic growth, new products, and cost reductions. I wouldn't be surprised if my estimate is low but I'm hesitant to estimate more with what I know now.

Mike

[Diabolic]

Hey Mike
if Q4 results are not so much better than Q3.
And since the EPS is around 0.016. the stock is trading at 0.9$ nearly 56 X EPS, what is upside potential of this stock?
Taking a position before it rallies when it breaks its all time high?

[swampboots]

I am interested in SHPI but feel all under dollar stocks may be battered disproportionately or be lifted by year end rally?

[MikeDDKing]

Did anyone join me in SHPI today? There are 13 boardmarks but so far only 10 Bagger (Hank) has posted that he joined me.

Also, if anyone has some questions on SHPI, please post them.

Mike

[MikeDDKing]

I found out that the Knobias article was published on 11/14.

Mike

[MikeDDKing]

Here are the impressive biographies for the SHPI management and Board of Directors:

Jeff Soinski, President & CEO, and Director

Mr. Soinski brings 23 years of general management, business development and marketing experience to SHPI, including several years as the President and CEO of ViroTex Corporation (“ViroTex”), a venture-backed pharmaceutical company focused on the development and commercialization of proprietary drug delivery systems. Mr. Soinski merged ViroTex into Atrix Laboratories, Inc. (NASDAQ: ATRX) in 1998, and continued working with Atrix on a transitional basis through 1999. Prior to joining SHPI, he was the Managing Partner and CEO of Mad Dogs & Englishmen, a marketing communications firm with offices in New York and San Francisco. Mr. Soinski has a BA degree from Dartmouth College.

Guy Jordan, Ph.D., Chairman of the Board

Dr. Jordan brings a wealth of senior management healthcare experience to SHPI, with a strong focus in the areas of vascular disease and oncology. Dr. Jordan recently retired as Group President for C.R. Bard, Inc. with global operating responsibility for their oncology businesses, geographic responsibility for Canada, Australia, Latin America and Asia Pacific, and functional responsibility for all of Bard’s research and development. Prior to joining C.R. Bard in 1986, Dr. Jordan held senior product development positions at American Cyanamid. Dr. Jordan has a Ph.D. degree from Georgetown University and an MBA from Fairleigh Dickinson University.

Donald Solomon, Ph.D., COO, CTO, Vice President, and Director

Dr. Solomon has over 25 years of medical product experience in research, product development, engineering and manufacturing. Prior to joining SHPI, Dr. Solomon was the Vice President of Research and Development at Johnson & Johnson Medical – Vascular Access. Prior to that he spent 14 years at Becton Dickinson (“BD”), and held positions as Worldwide Director of R&D for BD Pharmaceutical Systems Division based in France, and Director of R&D for Biocompatible Polymer Development at the BD Infusion Therapy Division. Dr. Solomon holds 50 patents and is the author of 52 scientific publications. He received Masters and Ph.D. degrees from Case Institute of Technology at Case Western Reserve University.

Paul Evans, Vice President, Business Development, General Counsel and Secretary

Mr. Evans is a registered patent attorney and brings a wide range of intellectual property and corporate legal experience to SHPI, having previously served as Vice President, General Counsel for an R&D company, and as a patent attorney with the law firm of Snow, Christensen & Martineau. Mr. Evans manages our intellectual property portfolio and corporate legal matters, and is extensivel involved in business development efforts. Prior to earning his law degree, Mr. Evans worked as a Project/Design Engineer for Morton International (now Autoliv). He holds JD, MBA and BS degrees from the University of Utah.

David Green, Chief Financial Officer, and Treasurer

Mr. Green brings 13 years of investment banking and financial advisory experience to SHPI. Most recently, Mr. Green was a Managing Director and head of the life sciences practice in the San Francisco office of Duff & Phelps. Mr. Green was also a Director in the mergers and acquisitions group and head of the fairness opinion practice at Ernst & Young in Palo Alto, California. Mr. Green has a BS degree in chemistry from the State University of New York at Brockport and an MBA in finance from the University of Rochester.

David Jahns, Director

Mr. Jahns is a General Partner and principal of Galen Partners. Since joining Galen in 1993, Mr. Jahns has been responsible for making and managing successful investments in several of the firm’s portfolio companies. He is an experienced board member and currently serves on the boards of DAOU Systems, Inc. and several of Galen’s privately held portfolio companies. Prior to joining Galen, Mr. Jahns worked in the Corporate Finance Division at Smith Barney. Mr. Jahns has an MBA degree from the J. L. Kellogg Graduate School of Management at Northwestern University and a BA degree from Colgate University.

Stuart Randle, Director

Mr. Randle is a highly experienced healthcare executive with over 20 years of operating experience. He is currently Chief Executive Officer of GI Dynamics, a medical device company focused on the treatment of obesity. From 1998 to 2001, Mr. Randle was the President and CEO of ACT Medical, Inc., a leading company providing outsourcing services to the medical device, biotech and diagnostic industries. He merged ACT Medical with MedSource Technologies in 2001. Prior to ACT Medical, Mr. Randle was President, Northeast Region, for Allegiance Corporation, a $5 billion medical products distribution and manufacturing company. He is also the past President, New England Region, for Baxter Healthcare Corporation. Mr. Randle has an MBA degree from the J. L. Kellogg Graduate School of Management at Northwestern University and a BS degree from Cornell University.

Steve Shapiro, Director

Mr. Shapiro has over 30 years of relevant medical device and equipment industry experience, including executive positions at Union Carbide Clinical Diagnostics and Becton Dickinson, where he was Director of Advanced R&D and New Business Development. In 1982, he joined The Wilkerson Group, a leading management consultancy to pharmaceutical, medical device, and diagnostic companies. Mr. Shapiro was Managing Director of The Wilkerson Group at the time of its acquisition by IBM in 1996. In 1999, Mr. Shapiro left The Wilkerson Group (now IBM Healthcare Consulting) to focus on sourcing and evaluating investments for two premier healthcare venture capital firms, including Galen Partners. Mr. Shapiro has a BS degree from MIT and an MS degree in biomedical engineering from the University of California, Berkley.

Bob Walker, Director

Mr. Walker is the past President of the IHC Affiliated Services Division of Intermountain Healthcare, a regional hospital company. He is also former Chairman of the Board of AmeriNet, Inc., a national group purchasing organization for hospitals, clinics, detox/drug centers, emergency, nursing homes, and other healthcare institutions. Mr. Walker is a member of the American Hospital Association and the Hospital Financial Management Association. He has a BS degree in Business Administration from the University of Utah.

Mike

[MikeDDKing]

I listened to the SHPI Q3 conference call again. Here are some quotes and notes from the call:

1. "...we expect Q4 operating expenses to remain at the same level or move lower compared with the third quarter."

2. "...and have already begun to implement some cost reductions in the fourth quarter."

3. "...we expect to begin shipping two new manufactured product lines over the next six months."

4. They have stockholder approval for a R/S of up to 1 for 10 which would enable them to get on the Nasdaq Capital Market. The only requirement they are missing right now for the Nasdaq Capital Market is the minimum stock price. They consider the R/S on a continual basis but they don't feel the timing is quite right. They would like to be in the mid to low end of the range of R/S range (e.g. 1 for 5 or lower) before executing on the R/S. My interpretation of what they stated is that they will not do a R/S at least until after Q4 results are out if at all.

5. "We anticipate holding gross margin roughly where it is today."

6. "...Europe is a high potential market and the Huber needle market in Europe is about the same size of that in the U.S." "...and that the majority of 2008 will benefit from growth in Europe."

Mike

[MikeDDKing]

SHPI: CEO Optimistic About Continued Growth Prospects

By Fain Hughes, [e-mail]

Specialized Health Product International (SHPI) has been the recipent of two recent awards. It was ranked Number 228 on Deloitte's 2007 Technology Fast 500, a ranking of the 500 fastest growing technology, media, telecommunications and life sciences companies in North America. It was also ranked Number 30 on MountainWest Capital Network's 2007 Utah 100 List of Fastest Growing Companies. The Utah 100 list is based on revenue growth over the last five years.

Specialized Health Products' President and CEO, Jeff Soinski, credits the Company's rapid pace of new safety needle product introductions and the success of its manufactured product lines with the company's 714% revenue growth over the past five years.

The Company designs, develops, manufactures, and markets proprietary disposable medical devices for clinician and patient safety. Their innovative safety devices are designed to maximize the efficiency and quality of healthcare, while minimizing the risk of accidental needlesticks, which are a leading occupational cause of the spread of blood-borne diseases such as HIV/AIDS and the hepatitis B and C viruses. The Company manufactures and market certain products, including three of the leading brands in the safety Huber needle market, under its own label. It licenses or supplies other products on an OEM basis to leading manufacturers and marketers in the global disposable medical products industry, including Tyco Healthcare, a subsidiary of Covidien Ltd., Bard Access Systems, and BD Medical. Product royalty income is generated from proprietary products subject to license agreements with larger corporate partners, including Tyco Healthcare, BD Medical, and TAP Pharmaceutical Products Inc. In each case, these products are manufactured and sold by licensing partners, and SHPI receives on-going royalty payments on product sales.

Mr. Soinski told Knobias on Wednesday, "To date, other areas of the world have been slower to adopt the safety medical needle mandates now adopted and enforced in the U.S. However, the danger of needlestick infection knows no national boundaries. Demand for safety products in certain medical needle categories is growing as certain countries in Europe and the rest of the world pass legislation of their own, including Germany, France, Italy, Australia, and Canada, and as unions become more active in requiring stronger measures to protect healthcare workers from accidental needlestick injuries. We anticipate that our products will be among the very first safety Huber needles available broadly in Europe, giving us a potentially strong first-mover advantage. More broadly, we expect international sales to be an important growth driver in 2008."

"Huber needles are specifically designed to access surgically implanted, subcutaneous vascular ports in patients requiring vascular access frequently, for infusions of drugs or fluids or for blood sampling, over periods extending from six months to one year. A major cause of accidental needlestick injuries to healthcare workers from Huber needles is due to the "rebound effect" which occurs during needle withdrawal from the implanted port."

"Regarding competition, the leading suppliers of syringe needles and syringes with needles are BD and Kendall, both partners of SHPI. B. Braun Medical is a leader in Europe and Asia, while Terumo Medical Corporation is a leader in Japan and the Pacific Rim. Competitive suppliers of safety Huber needle products with an integral safety feature or mechanism include Smiths Medical, Bard Access Systems, AngioDynamics and B. Braun."

Mr. Soinski explained, "The advantages of our products are shown by our market success, especially in the Huber market niche. We believe our LiftLoc(R) and MiniLoc(R) Safety Infusion Sets and SafeStep(R) Huber Needle Set provide significant advantages versus competitive safety Huber needle products on the market, including safety, reliability and ease-of-use. Between our branded products and our OEM products, Specialized Health commands approximately 58% unit share of the Huber safety needle market and 39% of the overall market for this important specialty safety medical category."

"Approximately six billion needles are used in the U.S. healthcare industry each year, and U.S. healthcare workers suffer an estimated 800,000 needlestick and sharps injuries annually. Each year, an estimated 1,000 U.S. healthcare workers contract serious, potentially life-threatening infections from accidental needlestick and sharps injuries. Besides HIV/AIDS and Hepatitis B and C, diseases that can be acquired from such accidents include diphtheria, gonorrhea, typhus, herpes simplex virus, malaria, syphilis and tuberculosis. The Centers for Disease Control and Prevention estimate that approximately 80% of accidental needle sticks are preventable with the use of safety needle devices."

"The products that we produce make a significant impact on the global healthcare market. The U.S. market for disposable medical needles alone is estimated to be $1.5 billion and growing, with the addressable market for safety medical needle products estimated to be approximately $1.2 billion annually based on an 80% conversion rate to safety products. We have developed multiple safety needle products based upon a broad intellectual property portfolio that applies to virtually all medical needles used today. We manufacture and market three of the leading brands in the safety Huber needle market."

He added, "Our philosophy of business maximizes our potential. Our business model is to enter into licensing, OEM supply, or distribution agreements for our products, rather than engage in direct sales of products to end-users on our own. The OEM supply of products to corporate customers and the sale of our own branded products through distributors are our preferred business relationships for targeted specialty products that can be manufactured efficiently on semi-automated manufacturing lines without a large capital investment. Targeted specialty products typically represent lower-volume, higher-margin opportunities in niche markets. We pursue out-licensing arrangements for high-volume, typically lower-margin; product opportunities that would require a tremendous capital investment to develop high-speed automated manufacturing equipment or would require competition with dominant multinational companies."

Mr. Soinski concluded, "We are now structured for growth. Our board of directors and management is ready to build on the transition of our business model in recent years from an R&D company with limited development funding and license fee revenue to a predominantly market-driven manufacturer and marketer of proprietary safety medical products. Management is focused today on profitability and expanding our positive cash flow. For our company, cash is king. We are focused on growing cash reserves that we can generate internally, through operations, and then reinvest into strategic growth alternatives without taking on debt."

"We are optimistic about our continued growth prospects, as we put new growth initiatives in place for 2008. We also see potential opportunities to expand beyond safety needles into adjacent areas of technology related to healthcare worker and patient safety. Nearest at hand are opportunities in the disciplines of vascular access, oncology, interventional radiology and surgery. Elements of our growth strategy include capturing significant market share in targeted product segments, broadening existing product lines, developing new products, and seeking additional market opportunities through merger and acquisition activities."

http://www.nasdaq.com/aspxcontent/NewsStory.aspx?cpath=20071114\ACQKNB200711141119KNOBIAS_NEWS____2007111416_1876.htm&symbo

[10 bagger]

Mike,,

I bought a few at $0.89 at the close.. The company makes a great presentation and appears to have Depth in it's management.. After disasters in VDBG and SGZI I am looking forward to owning a real company,, that has a real product that is purchased for it's need and not because of advertising hype.. I think you have found a needle in the haystack of VMC type stocks.. I think SHPI has legs to become at least a 5 bagger from here... hank

[swanlinbar]

Saw your post over on the value Microcap board,will check it out! Thanks Jerry

[MikeDDKing]

SHPI has some seasonality so Q4 revenue and earnings are expected to be slightly lower than Q3. Here is a quote from the Q3 press release: "With organic revenue growth of 23% for the quarter and expanded profitability, we believe we are on-track to achieve the mid-to-high end of our financial goals for 2007,” continued Mr. Soinski. “We are also optimistic about our continued growth prospects, as we put new growth initiatives in place for 2008, including the anticipated expansion of our core safety Huber needle business to international markets.” Their guidance was for 30-40% revenue growth which would indicate 2007 revenue of $17,249,727 – $18,576,629. That implies Q4 revenue of $4,254,026 - $4,917,477 which would be down slightly from Q3 revenue of $5,069,283. Having said that, I wouldn't be surprised if they beat the top end of their guidance as they seem to under promise and over deliver.

Mike

[MikeDDKing]

SHPI is experiencing some excellent growth. YTD they have had 43.6% revenue growth and 657% earnings growth. They have GM in the 66% ballpark which is why the strong revenue growth drops rapidly to the bottom line. Earnings growth next year should be spectacular as well. The big driver of this growth will likely be a move into the international market. They also are planning some new products.

Right now I'm estimating 2008 revenue of $23.5M and EPS of $0.08. With a PE of 20 that suggest a price of $1.60 in late 2008. That would be a big jump from $0.87 where SHPI closed today. SHPI will provide guidance along with their Q4 report. That report will give us a better idea of the kind of growth to expect. I wouldn't be surprised if their guidance is higher than my estimate.

The biggest risk that I can find with this company are their patent lawsuits.

Mike

[MikeDDKing]

Specialized Health Products Enters Agreement with B.Braun Medical S.A.S. for International Distribution of SafeStep(R) Huber Needle Set
Monday November 19, 1:00 pm ET


BOUNTIFUL, Utah--(BUSINESS WIRE)--Specialized Health Products International, Inc. (OTCBB:SHPI - News), a leading developer and marketer of proprietary safety medical products, today announced that it has entered into an agreement with B.Braun Medical S.A.S. for the exclusive supply and distribution of SafeStep® Huber Needle Set in worldwide markets, excluding the United States and Canada. Under the terms of the agreement, Specialized Health Products will provide finished goods to B.Braun Medical for marketing under B.Braun’s private label and branded as Surecan® SafeStep®. The agreement is for an initial term of three years and includes minimum purchase requirements for the life of the agreement.

“While Specialized Health Products is the leader in the U.S. safety Huber needle market, expansion into international markets is an important and relatively untapped element of our growth strategy,” commented Jeff Soinski, President and CEO of Specialized Health Products. “By aligning ourselves with B.Braun Medical, the European market leader in vascular access ports, which Huber needles are used to access, we believe that we are well-positioned to efficiently and effectively enter Europe and other key international markets with our fast-growing SafeStep® product line.”

“Surecan® SafeStep® will help us grow our global market share in access ports, and contribute to the everyday safety of medical staff in the workplace, a pioneering area for the B.Braun group,” said Jean-Michel Actis, Vice-President/Access Port Systems and Peripheral Vascular Systems. “Our partnership with Specialized Health Products is an enhancing factor for our innovation strategy to provide solutions whenever an implanted port system can be used to access a target area in the body with relation to blood and/or treatments.”

About Specialized Health Products International, Inc.

Specialized Health Products International, Inc. is a leading developer, manufacturer and marketer of proprietary disposable medical products for clinician and patient safety. Specialized Health Products has developed multiple safety needle products based upon a broad intellectual property portfolio that applies to virtually all medical needles used today. Specialized Health Products is a market leader in safety Huber needles, with four complementary product offerings. The Company has licensed or supplies other products to leading global healthcare companies, including Covidien, Bard Access Systems, and BD Medical. For more information about Specialized Health Products, visit the Company’s website at www.shpi.com.

About B.Braun Medical S.A.S.

B.Braun Medical S.A.S. is the French subsidiary of B.Braun Melsungen A.G., one of the world’s leading companies in international healthcare, with a workforce of 33,000 and presence in more than 50 countries. With the motto “Sharing Expertise,” the B.Braun Group pledge to use, share and broaden knowledge in dialogue with the customers, in order to provide integrated system solutions. B.Braun Medical S.A.S. has both local and global responsibilities: the latter cover access port systems, endovascular systems, woundcare, stomacare and continence care. For more information, visit the websites at www.bbraun.com and www.bbraun.fr.

This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended. Such statements are subject to risks and uncertainties that could cause actual results to vary materially from those projected in the forward-looking statements. The Company may experience significant fluctuations in future operating results due to a number of economic conditions, risks in product and technology development, the effect of the Company's accounting policies and other risk factors detailed in the Company's SEC filings. These factors and others could cause operating results to vary significantly from those in prior periods and those projected in forward-looking statements. Additional information with respect to these and other factors, which could materially affect the Company and its operations, are included on certain forms the Company files with the Securities and Exchange Commission.





Contact:
Specialized Health Products International, Inc.
David Green, Chief Financial Officer, 801-298-3360
[e-mail]
or
CCG Investor Relations
Sean Collins, Senior Partner, 310-477-9800
[e-mail]

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Source: Specialized Health Products International, Inc.

[MikeDDKing]

Specialized Health Products Reports Record Financial Results for Third Quarter 2007
Wednesday November 7, 4:02 pm ET


BOUNTIFUL, Utah--(BUSINESS WIRE)--Specialized Health Products International, Inc., (“Specialized Health Products”) (OTCBB: SHPI - News), a leading developer and marketer of proprietary safety medical products, today announced financial results for the three and nine month periods ended September 30, 2007.

Highlights for Q3-2007:

- Revenue increased 23% to $5.1 million in Q3-2007, compared to $4.1 million in Q3-2006;
- Gross profit margin increased to 66% in Q3-2007, compared to a gross profit margin of 65% in Q3-2006;
- Net income increased 92% to $1.1 million in Q3-2007, from $557,000 in Q3-2006;
- Cash, cash equivalents, and available-for-sale securities totaled $8.3 million at September 30, 2007, representing a quarter-on-quarter increase of $1.3 million from June 30, 2007.

“During the third quarter, we achieved three significant financial milestones: our first quarter with over $5 million in revenue, our first quarter with over $1 million in net income, and our first quarter with over $1 million in cash flow,” commented Jeff Soinski, President and Chief Executive Officer of Specialized Health Products. “With a 66% gross margin and 21% net income margin, our third quarter results underscore the efficiency of our business model, as we continue to gain operating leverage on increased sales.”

“With organic revenue growth of 23% for the quarter and expanded profitability, we believe we are on-track to achieve the mid-to-high end of our financial goals for 2007,” continued Mr. Soinski. “We are also optimistic about our continued growth prospects, as we put new growth initiatives in place for 2008, including the anticipated expansion of our core safety Huber needle business to international markets.”

Financial Results for Q3-2007

Total revenue for the three month period ended September 30, 2007 totaled $5.1 million, representing an increase of 23% over the $4.1 million posted in the year earlier period.

Product sales in Q3-2007 increased 27% year-over-year to $3.8 million, compared to $3.0 million in Q3-2006. Over the same time frame, royalty income grew 21% to $1.1 million in Q3-2007, from $923,000 in Q3-2006. Technology fees and licensing revenues remained constant between the two comparable periods at $49,000. Development fees and related services declined 48% to $65,000 in Q3-2007, compared to $126,000 in Q3-2006.

The primary drivers of product sales growth were increased market penetration of the Company’s leading safety Huber needle products, as well as new OEM sales of PowerLoc® Safety Infusion Set to Bard Access Systems and Monoject™ Bone Marrow Biopsy Needles to Tyco Healthcare. The increase in royalty income is primarily attributable to the growth of licensed products to BD Medical, including Vacutainer® Push Button Blood Collection Set. The decrease in development fees and related services reflects the Company’s continuing transition to an emphasis on manufactured product sales in its revenue mix and the maturation of funded development projects.

Gross profit in Q3-2007 increased 25% to $3.4 million, compared to $2.7 million in Q3-2006. Gross profit margin was 66% during Q3-2007, representing a one percentage point increase compared to the 65% gross margin recorded in Q3-2006.

Total operating expenses were $2.3 million in Q3-2007, representing a 9% increase compared to the $2.1 million realized in Q3-2006.

Net income increased 92% to $1.1 million in Q3-2007, from $557,000 in Q3-2006. Earnings per diluted share (“EPS”) were $0.02 for Q3-2007, compared to $0.01 for Q3-2006.

Excluding amortization of stock-based compensation (a non-cash expense), the Company would have achieved non-GAAP net income of $1.5 million and EPS of $0.02 in Q3-2007.

During Q3-2007, the Company’s cash, cash equivalents and available-for-sale securities increased to $8.3 million, representing a sequential quarter increase of $1.3 million from $6.9 million at June 30, 2007.

Financial Results for Nine Months Ended September 30, 2007

Total revenue for the first nine months of 2007 increased 44% to $13.7 million, from $9.5 million in the first nine months of 2006.

Product sales increased 50% to $10.5 million in the first nine months of 2007, from $6.9 million in the first nine months of 2006. Royalty income increased 57% to $3.0 million, from $1.9 million in the year-earlier period. Technology fees and licensing revenues remained constant between the two nine-month periods at $148,000. Development fees and related services declined 81% to $103,000 in the first nine months of 2007, from $532,000 in the first nine months of 2006.

Gross profit margin in the first nine months of 2007 was 66%; an improvement of one percentage point over the 65% recorded in the first nine months of 2006.

Operating expenses increased 24% to approximately $7.3 million for the nine-month period ended September 30, 2007, compared to $5.9 million for the nine months ended September 30, 2006.

Net income for the first nine months of 2007 increased to $1.8 million, representing an improvement of 657% compared to net income of $241,000 in the first nine months of 2006. Fully diluted earnings per share were $0.03 for the first nine months of 2007, compared to $0.00 for the same period in 2006.

Excluding amortization of stock-based compensation, the Company would have achieved non-GAAP net income of $2.9 million and EPS of $0.04 for the first nine months of 2007.

Financial Results for Trailing Twelve Months Ended September 30, 2007

For the trailing twelve months (“TTM”) ended September 30, 2007, total revenue increased 52% to $17.4 million, from $11.4 million in the trailing twelve months ended September 30, 2006.

For the TTM ended September 30, 2007, net income and EPS were $2.0 million and $0.03, respectively, compared to a loss of $1.5 million and ($0.03), respectively, in the TTM ended September 30, 2006. This represents an improvement of $3.4 million and $0.05 per share, respectively, in the 2007 period.

Excluding amortization of stock-based compensation, the Company would have achieved non-GAAP net income of $3.4 million and EPS of $0.05 for the TTM ended September 30, 2007.

Non-GAAP Measures of Financial Performance

To supplement the Company’s consolidated financial statements presented in accordance with generally accepted accounting principles, or GAAP, Specialized Health Products uses non-GAAP measures of net income and non-GAAP earnings per diluted share.

These non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Specialized Health Products’ results of operations as determined in accordance with GAAP. These measures should only be used to evaluate Specialized Health Products’ results of operations in conjunction with the corresponding GAAP measures.

Reconciliation to the nearest GAAP measure of all non-GAAP measures included in this press release can be found in the tables included in this press release.

Non-GAAP measures are provided to enhance investors’ overall understanding of the Company’s current financial performance and the Company’s prospects for the future. Specifically, the Company believes the non-GAAP measures provide useful information to both management and investors by excluding certain non-cash expenses. The sole adjustment to the Company’s GAAP financial statement presentation is the add-back to net income of the amount represented by amortization of stock-based compensation. Stock-based compensation expense consists entirely of the expense related to the issuance of restricted stock to Directors and employees of Specialized Health Products under Statement of Financial Accounting Standards No. 123 (revised 2004), “Share-Based Payment”. Specialized Health Products excludes stock-based compensation expenses from its non-GAAP income and EPS measures primarily because they are non-cash expenses that the Company does not believe are reflective of ongoing operating results.

In determining non-GAAP net income and EPS for the Company, an incremental tax representing an estimated amount for alternative minimum tax was deducted from the incremental income resulting from the add-back of stock based compensation expense. Company management believes there are sufficient NOL assets to mitigate any additional state or federal income taxes.

Conference Call

The Company will host a conference call at 4:30 p.m. EST on Wednesday, November 7, 2007 to discuss earnings for the 2007 fiscal third quarter ended September 30, 2007. To participate in the conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: [phone]. International callers should dial [phone]. This conference call will also be broadcast live over the Internet and can be accessed through a link on the Company’s website at www.shpi.com. To listen to the live call, please go to the Specialized Health Products website at least fifteen minutes prior to the start of the call to register, download, and install any necessary audio software. For those unable to participate during the live broadcast, a replay will be available by 8:00 p.m. EST on November 7, 2007 through November 14, 2007 at [phone] or [phone], using the access code 892108. The replay will also be available shortly after the call on the Specialized Health Products website.

About Specialized Health Products International, Inc.

Specialized Health Products International, Inc. is a leading developer, manufacturer and marketer of proprietary disposable medical products for clinician and patient safety. Specialized Health Products has developed multiple safety needle products based upon a broad intellectual property portfolio that applies to virtually all medical needles used today. Specialized Health Products is a market leader in safety Huber needles, with four complementary product offerings. The Company has licensed or supplies other products to leading global healthcare companies, including Covidien, Bard Access Systems, and BD Medical. For more information about Specialized Health Products, visit the Company’s website at www.shpi.com.

Forward-Looking Statements

The statements contained in this press release regarding performance against financial goals for 2007, anticipated revenue growth and expansion of the Company’s products to international markets in 2008, and other statements that are not historical fact are forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended. Such statements are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties that could cause actual results to vary materially from historical results or those anticipated in such forward-looking statements. The Company may experience significant fluctuations in future operating results due to a number of economic conditions, risks in product and technology development, the effect of the Company's accounting policies and other risk factors detailed in the Company's filings with the Securities and Exchange Commission, including the Company’s annual report on Form 10-KSB for the fiscal year ended December 31, 2006. These forward-looking statements speak only as of the date on which such statements are made, and the Company undertakes no obligation to update such statements to reflect events or circumstances arising after such date.

http://biz.yahoo.com/bw/071107/20071107006428.html?.v=1

Mike