With introduction of automated external Defibrillator (AED) Powerheart G5 in US and Canadian markets, Opto Circuits is hopeful of 8-10 percent growth in the total market size of AEDs said Vinod Ramnani, CMD, Opto Circuits in an interview to CNBC-TV18. The total market size is around USD 400 million, he added.He is also hopeful of this product opening up new markets for the company, but US to date remains the biggest market for the company, said Ramnani.Opto Circuits group company Cardiac Science has introduced the product. The stock rallied 10 percent on back of the news.Ramnani said there are currently only three to four players in the AED market.
Below is the transcript of Vinod Ramnani’s interview with Nigel D\\'Souza & Reema Tendulkar on CNBC-TV18. Reema: Can you walk us through what kind of an opportunity it throws up for Opto Circuits because you have launched it in two key markets, US as well as Canada and will this yield into any existing product of yours? A: This is very unique product for which we worked hard for almost 7 years to finish and get our FDA approve because this is a CPRD assessed product which has dual language and fastest shock. So this is a very unique product for the US and Canadian market.
Every year approximately 17 billion people die of cardiac arrest and will open up lot of new markets for us. This has a lot of new features which we didn’t have in your older version. We are hopeful that it is going to be a big turning point for Cardiac Science which is owned by us.
I hope that market will just accept it because this is very good product and we are hopeful of growing the market size with this product been introduced in US and Canada.
Nigel: What is the total market size of this particular product?A: Total AED market size is approximately USD 400 million. It is adding on because lot of deaths are happening while playing soccer, so all these clubs have started buying the AEDs. I am hopeful to see a growth of 8-10 percent of the total market size. Nigel: You are looking at capturing how much of this total market?A: We are only 3 or 4 major players so this will give a big boost because it is a very good and unique product, so I am sure the demand will increase. Reema: Will you launch this product in any other market?A: We already launched in Europe, US still is the biggest market for us and we just got the FDA for the CPRD assessed now that is very important feature of this unique product and at the same time there is two languages. So you can switch over from one to another, so it is very handy to use. Moreover, it is very simple and user friendly. Nigel: Could you give your targeted sales from this product? What are the margins that you are looking at, may be for FY16 and FY17 as well?A: The margins are pretty decent; we have a gross on this product between 45-50 percent. I wouldn’t be able to tell you the total size we are going to capture but our marketing and sales team is bullish after we launched the product.
Reema: Is USD 400 million market opportunity is in US and Canada or worldwide, the number that you gave us?A: Majority of it is coming from US and Japan. Japan we can not say because we are selling our old version there through Omron. The other markets like Europe is good, particularly Italy, France and UK. Reema: Are you present in Japan which seems like a key market?A: Japan we have a presence through Omron but that is our older version not this. We are selling it through Omron and this one is going to go to Europe and Middle East and Latin America and of course after FDA US is the big market for us.
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