THE AUSTRALIAN, WEALTH, APRIL 21, 2010
Feds step up to
the super crease Little and large, and grinds and sterilises it. I;'ounder
Dan Daniels has also devised'a sharps
disposal system that makes it difficult
for even the most sleep-deprived
treatment unit bearing the futuristic
title of the MetaMizer. The unit
breaks down waste (even plastics) us-
ing a natural heat sanitation method.
they're both medics to sustain a needlestick injury.
"With.the disposable sharps con-
tainerWe started a new industry wlllch
didn'Lexist," says Daniels, who in-
It was developed locally as an
alternative to the present practice of
trucking and treating waste or incin-
eration which, notes chief executive
worth the waste
ventedthe devicein Illsgarage. "While Paul McPherson, is "incrediblybad for
everyone was making VWs we were the environment".
making spaceslllps." The waste is deposited in special
SteriHealth competes with a raft of wheelie bins and carted to the central
non-specialist waste operators such as unit, which reduces the waste to a
HOSPITALS are meant to be centres Veolia, Sita and Transpacific. But the smaller inert mass that can be dis-
for healing but in reality they're sector is higWyregulated, which tends posed of in normal garbage.
dangerous places: go in for an in- to deter newcomers. MediVac has sold three Meta-
grained toenail operation and there's a "We have a very solid ground in the Mizers and wants to get a larger ver-
chance you'll be discharged in a industry," chief executive Cameron sion to market by the third quarter.
wooden box,the victim of golden staph Grant says. "We would sit on 40 per MediVac's other main products are
THE federal government will be- or hospitalfood. cent to 60 per cent share ofthe market infection-control wipes and hand
come a major competitor in superan- And spare a thought for the health and we're one of the few businesses 10tions.Itis already marketing the for-
nuation if the MySuper fund pro- CRITERION professionals: one errant prick with a that operate in every capital city." mer, SunnyWipes, under the Kleenex
posed by the Cooper review is used needle and they're at risk of all SteriHealth achieved 10 per cent brand to the domestic sector, but its
'l'lM BOR.EHA~¥1 kinds ofnasties. revenue growth last year, while Grant main target isthe professional market,
Lastweek The Australian revealed Still, the average ageing baby estimates the sector is growing at 3 per which requires Therapeutic Goods
that reviewchairmanJeremy Cooper boomer won't be able to avoid the odd centto 5 per cent a year. The business is Administration certification.
was proposing that all super fun visit and, given there's so many of largely fixed cost, so increased vol- McPherson estimates the address-
forced to offer a version of the them, health care is a growth sector. umes flowthrough to the bottom line. able market at $70 million a year for
Super fund, which will be relatively The investor gut reaction is to buy MediVac,which has a market cap of clinical waste and $200 million for
simple to understand, have a nar- stocks such as hospital operator Ram- a mere $8 million and sub-lc share hand sanitisation. "But the real mar-
rower range of investment options say Health Care, but there's money in price, is developing an on-site waste- ketfor both is overseas,"he says. "Both
and lowerfees. . muck, too: the safe and effective dis- markets are growing strongly: more
It was an alternative approach to posal of hospital waste, especially countries are banning incinerators,
the one he first mooted where the sharps (used needles). two stocks to Trash and treasure while the swine flu heightened the
government would offer its own na- watch are SteriHealth (ASX code: need for effectivehand sanitation."
$ Sterihealth (STP)
tional default fund, but the practical STP) and Medivac (MDV), although 200 MediVac is in pre-revenue stage
outcome is essentially the same: the we stress they're at different evolution- 1.80 and its shares are trading at a fraction
government would just require the arystages. of a cent. McPherson expects a more
existing super funds to operate the SteriHealth is an established oper- positive response as the company rolls
fund, leaving it to set the parameters. ator in waste disposal. In fact it's the out its products.
MySuper is an admission that the firstname.lastname@example.org biggestlocal operator and handsomely In the meantime SteriHealth (mar-
benefits of superannuation choice, profitable, producing a 40 per cent ket cap $27 million) is trading on a
introduced fiveyears ago,have large- TheAustralian accepts no surge in first-half net profit to $3.1 mil- lowly price-earnings multiple of less
ly proved illusory for most people, responsibility for stock lion (and an 8 per cent revenue gain to than six times. So it's an investment
and they are now being offered a recommendations. Readers should $23.7 million). choice between the underloved stal-
safety net. contact a licensed financial adviser. SteriHealth removes medical waste wart and the ambitious up and comer.
Unlike most Wealth readers, most
of the broader population is disen-