Gall & Eke flags up the attraction of Advanced Medical Solutions (AMS), a UK-based pharmaceutical company focused on the development and provision of advanced wound care dressings and tissue adhesives for the global wound care market.

AIM-listed AMS is apparently capitalising on Government-driven outsourcing in the NHS, with contracts to supply its flagship Activheal woundcare dressings to NHS trusts having doubled from 20 to 40 in a single year.

Acitvheal is tailored towards the current budgetary constraints facing the NHS. It offers significant cost savings in comparison to its competitors while providing identical operational functionality. In addition, Liquiband tissue adhesive is now the product of choice in the majority of the UK’s Accident & Emergency departments.

The substantial increase in penetration levels within AMS’s core markets over the past 12 months illustrates the current success of the group’s strategy, while providing it with valuable forward momentum.

Continuing outsourcing pressures in conjunction with the group’s strategy to increase penetration into NHS hospitals while marketing Activheal’s cost advantages to the as yet untapped local healthcare market should present further opportunities to secure contract wins, Gall & Eke believes.

Furthermore, ‘AMS has the ability to drive additional revenue growth through its expansion into the wound care markets of China and Japan, where regulatory approval is currently being sought for Liquiband, and in the USA through a strategic partnership with Kimberly-Clark.’

‘Considering the group has achieved considerable short-term growth, we now see this stock as attractive,’ concludes the broker.