Luther Medical, TUSTIN
Nature of Business: Develops, manufactures and markets intrevenous catheter placement systems.
Total Employees: 35
In Orange County: 35
Stock Listing in The Times: On Western OTC as “LutherMed”
Ticker Symbol: “LUTH”
Friday’s Close: $8.38
One-Week Change: Up $.63
Analyst Review: “Luther Medical had a great idea: an IV catheter that didn’t stick health care workers. But like most small companies, they didn’t have enough capital to market it on their own, so they struck a deal with Johnson & Johnson that initially gave them royalties of five cents for each unit J&J; sold; those royalties later dropped to three cents. In hindsight, it may not have been the greatest deal for Luther, but they did what had to be done. The market potential for stickless catheters is very good--especially if OSHA or some other regulatory agency mandates their use. I’ve seen estimates of 30 million catheters being sold each year. Even at three cents each, that’s still $900,000. They recently signed a contract with Pharmacia Deltec that will guarantee them a minimum of $780,000 in the first year. Luther is one of these companies that always seems to be on the verge, and you never know when that verge is going to mushroom. --Mark Matheson, director of research, Cruttenden & Co., Irvine
REVENUE VS PROFITS
Fiscal year ending June 30 June 30 June 30 2 Qtrs. 1989 1990 1991 1991 Net Revenue $2.3 $3.1 $2.4 $1.2 Net Profit (Loss) ($124,000) $16,000 ($772,000) ($177,000)
Fiscal year ending 2 Qtrs. 1992 Net Revenue $1.4 Net Profit (Loss) ($191,000)
Corporate Outlook: “On Jan. 1, 1991, Luther stock traded for approximately $2.80. Today it trades at more than $9. The financial markets are valuing Luther’s ability to create unique catheter products and to attract world-class partners for distribution. Johnson & Johnson sells millions of our stickless catheters, and sales should rise as the concerns for protection increase. Our contract with Pharmacia Deltec should take catheter sales up 50% in 1993. Our future can only be exciting.” --W. Tate Scott, president/COO
RETURN ON INVESTMENT: 3-YEAR SUMMARY AND YEAR-TO-DATE
Year ending June 30 June 30 June 30 2 Qtrs. 1989 1990 1991 1991 52-Week High $7.00 $6.34 $5.47 $4.81 52-Week Low $3.50 $3.06 $2.19 $2.41 Book Value Per Share $0.42 $0.53 $0.20 $0.53 Price Per Share $5.25 $3.28 $4.38 $2.63 Net Earnings Per Share ($0.07) $0.08 ($0.39) ($0.09) Price-to-Earnings Ratio N/A 41:1 N/A N/A Avg. Return on Investor Equity N/A .08% N/A N/A N/A
Year ending 2 Qtrs. 1992 52-Week High $9.93 52-Week Low $3.25 Book Value Per Share $0.71 Price Per Share $7.75 Net Earnings Per Share ($0.09) Price-to-Earnings Ratio N/A Avg. Return on Investor Equity N/A
Source: Luther Medical Products Inc. For more information call or write, Luther Medical Products Inc.: 14332 Chambers Road, Tustin, Calif., 92680. (714) 544-3002
