LISTED medical equipment supplier Medilines Distributors, Inc. said it obtained contracts to supply dialysis machinery and build dialysis centers in government hospitals.
In a regulatory filing on Wednesday, Medilines said deliveries on the contracts, which include consumables, will begin this quarter, continuing to 2024.
“Given the nature of the contracts and their dependence on site readiness, the company anticipates revenue recognition for some of these projects to take place in 2024,” Medilines said. It did not provide a value to the contracts in the disclosure.
In June, the Philippine Health Insurance Corp. (PhilHealth) expanded the coverage of dialysis treatments to 156 sessions from 90 sessions, with sessions at government-accredited dialysis running to three times a week.
“The dialysis market looks promising in the succeeding years,” Medilines said.
Medilines President Patricia V. Yambing said the company can start the delivery and installation of dialysis machinery in selected areas where the health infrastructure is ready to receive new centers.
“We are excited to see amazing progress in the implementation of government healthcare programs which includes the Philippine Health Facility Development Plan, among others. With some dialysis treatment infrastructure nearing completion, we can start the delivery and installation of much-needed dialysis machines and supplies in selected areas. This will help our fellow citizens gain better access to life-saving treatments,” she said.
Ms. Yambing said the company is also targeting equipment supply deals for other types of treatment center as they are established.
“We also look forward to the expansion and completion of other specialty centers like cancer centers as we anticipate additional orders of our cancer therapy machines and diagnostic imaging machines to equip these facilities,” she said.
In the first nine months, Medilines posted a net profit decline of 80% to P22.95 million.
Revenue over the nine months fell 70% to P358.90 million.
“There is a 70% decline from the same period last year due to the project-based nature or non-linear sales pattern of the company. This year, most of the company’s projects are scheduled to be delivered and completed in the last quarter of the year,” Medilines said.
On Wednesday, Medilines shares were flat at P0.365. — Revin Mikhael D. Ochave
