Neat trick: Used needles won't prick

SHPI's MiniLoc Safety Infusion Set has a low profile and small footprint, and when a set of plastic "wings" are pulled to withdraw the needle from the patient, a plastic mechanism extends along each side of the needle. An audible click and a small color indicator let the user know the needlepoint is locked out.

SHPI's SafeStep is used for the same function but has a different safety technology. LiftLoc and PowerLoc are among other SHPI Huber needles.

Additional products include the SecureLoc, a long needle with a small plastic safety capsule that slides to the business end of the needle and locks in place; a needle that has V-shaped plastic protection that unfolds over the needle; and a syringe needle that instantly disappears entirely into the plastic syringe when its work is done.

Humble beginnings

While SHPI is a major player in its industry, it wasn't always that way. In fact, it once was as hidden as one of its retractable needles.

Founded in 1993 as Specialized Health Products Inc., it became a wholly owned subsidiary of SHPI in 1995 but still was primarily a research and development company until 2001.

That's when a private equity firm led the first of two investments, leading to what Soinski called "kind of like a company restart." The company's first safety needle products were introduced into the U.S. market in 2002.

"We set out to transition from a somewhat underperforming R&D company to a successful operating company," Soinski said. "That's been our mantra the past 5 1/2 years now."

When the company restart occurred, SHPI had about $500,000 in revenues but millions in operating losses. However, the past few months have been good to the company. Armed with a June 2006 merger with Med-Design Corp., SHPI had its fourth straight profitable quarter in the first quarter of this year.

For all of 2006, SHPI net income thrust to $385,000 on revenue of $13.3 million. The prior year, it had a net loss of $2.8 million on revenue of $7 million. The company's 2007 first-quarter net income of $304,000 is in marked contrast with the net loss of $543,000 a year earlier. First-quarter revenues of $4.2 million were more than double the $2 million in the prior-year period.

For all of 2007, the company expects to have profitability of about $2 million and revenues between $17.2 million and $18.6 million.

Diversified products

SHPI makes its money in a number of ways, and its diverse product offerings make their way to end users through different paths.

Armed with more than 400 issued and pending patents worldwide, SHPI has opted to license some products, serve as an original equipment manufacturer on others and sign distribution agreements for some. Deals are in place with such powerhouses as Tyco Healthcare, Bard Access Systems and BD Medical, the latter two based in Utah.