PTS Pulse Q4 2022
pts
pulse Q4
The Future of PTS:
2022 and Beyond
By Jonathan Chapman, President and Chief Executive Officer
2022 has been a terrific year for the organization despite its share of challenges. The pandemic brought
about some big changes in healthcare and specifically in PTS’ traditional
core markets.
Some customers who we expected to make a near full recovery in 2022 —like our traditional global screening customers— did see growth compared to 2021, but have continued to struggle. When we look at 2023, though, there are positive signs that the beginnings of the recovery we saw in 2022 will continue into 2023. Sales to Direct Screening customers and to Distributors who supply healthcare providers’ offices led a rally toward the end of the year.
Pharmacies, another core segment for PTS, have not re-embraced point-of-care testing at the rates we had hoped, as they continue to be distracted by the demands of providing vaccinations instead. The Home Health market, however, delivered strong results for A1CNow sales. Overall though, the net result is that the hard fought for successes combined with the Global Sales Teams’ concerted efforts to grow our U.S. distribution business and recapture lost tender business in Mexico have us poised to hit our overall profitability targets for 2022.
This puts us on much more solid ground for a building momentum in 2023 and beyond.
Facing New Challenges
There is no question that we will be facing increased competition in the marketplace as we head into 2023. Other medical device manufacturers are looking to grab some of our market share by positioning their products as better solutions in the pharmacy and healthcare provider markets. Dry blood spot cards and other devices continue to be a competitor in the home testing market.
However, we will continue to differentiate ourselves, along with our partners at Sinocare and Trividia, with our high-quality products, and our many years of experience as leaders in the management of diabetes and its comorbidities. We will also continue to lean on our culture of resourcefulness and creativity to think beyond our limits.
We must continue to diversify and expand our customer base in the US as well as our Distributor network around the world. Our products have far-reaching utility and in absence of new products we must add new vertical markets to achieve revenue targets. Areas like home health, physician office laboratories, pediatrics and community health represent significant growth opportunities in 2023 and beyond.
One of the ways we hope to prove our continued leadership in this space, is by launching a new point-of-care analyzer late in 2023 that measures a patient’s blood creatinine levels. That data is used to help healthcare providers identify patients who at risk of developing kidney disease.
At-home testing continues to be in demand in our post-pandemic world, as a way for people to complete their biometric screenings without the hassle of attending multiple appointments. To help meet the needs of these consumers, we plan to extend our home testing portfolio in 2023 to include CardioChek Plus Home with Lipid Panel + eGLU test strips. This will help us expand into a new market and mitigate some of the losses we have sustained due to changes in the Health & Wellness Screening industry.
The at-home testing market will also drive a greater need for our devices to offer seamless connectivity to healthcare provider’s patient record systems. Not only will this increase the ease and convenience of our test systems, it will also allow providers to have greater trust in receiving results from a patient’s self-test. If the results are being beamed directly from the device into the records system, there’s less likelihood of error in the reporting of the results.
Advancing Business Processes
In order to support new initiatives and our expansion into new markets, we will need to be creative with our resources and innovative in our approach. We will continue to look for ways to streamline our business processes and improve our reporting and analysis.
We anticipate that supply chain challenges are likely to continue to follow us into 2023. Our Finance and Sales teams will be working on providing real-time data analysis to allow for more precise forecasting that will give our Operations team information they need to continue to manage inventories and customer expectations.
We will also continue looking for ways to further align PTS Diagnostics and Trividia to expand our resources, strengthen our processes, reach new markets, and meet the growing needs of our customers.
We Are Counting on You
Our people are and will always be our biggest asset. We have a great culture made up of talented people and strong teams. In 2023, we will look for ways to invest in each of you by creating professional growth opportunities. Continuing our revenue growth trends and introducing new products and initiatives will better enable us to do that. I genuinely appreciate the important and significant role that each person at PTS plays in moving our business forward and in making this a rewarding place to work.
We have a unique product line, and in a post-pandemic world, management of high-risk persons with diabetes and other chronic disease states is seen as paramount to improving future outcomes. Our best days are clearly ahead of us. Thank you for being a part of the PTS Team.
Employee Connection:2022 Year in Review
If there is one thing that has not changed much since 2020, it is the tendency for articles in this newsletter to start by marveling at how much change there’s been. Even when everything else in the world feels uncertain, you can at least count on this one small thing to remain the same. (You’re welcome?)
Anyway, we recently surveyed a group of PTS employees to get their take on the highs and lows of 2022. Here’s what they had to say:
When you look back at 2022, what are some things that you and your team are most proud of?
“Maintaining the supply of raw materials in one of the most chaotic supply- chain-challenged eras!”
— Ann Fausset, Operations
“We achieved IVDR certification of our quality system AND achieved our first IVDR product certification.”
— Heidi Strunk, Quality & Regulatory
“2022 was challenging trying to find the right lane on the freeway to hit cruising speed. We had to compete with not only our biggest competitor, but other product lines for time and space as the PPE craze is wrapping up. We did exactly what I expected from our team—we hit cruising speed early and didn’t let up.”
— Gary Johnson, U.S. Sales
What are some new things you and your team members learned this year? How might your newly acquired skills and knowledge shape what you do in 2023?
“We learned, and are continuing to learn, how to best integrate with the broader PTS/THI/Sinocare teams, while developing new partnerships and new relationships externally and within the business. This should lead to a more motivated, driven team, supporting growth and development.”
— Andrew Greaves, International Sales
What is something that helped you and your team stay motivated in 2022?
“The continued support from the executive team, finance, marketing, manufacturing, shipping, and customer service is what makes the sales side of PTS successful. We need the full company to be in sync and we will continue to grow.”
— Gary Johnson, U.S. Sales
“Knowing that, as hard as it might seem initially, once you are up and ready to go, the whole team helps each other out.”
— Amy Howell, Customer Service and TSS
“The customer/patient. We’re not supplying widgets, but health care maintenance for our customers.”
— Ann Fausset, Operations
What words of wisdom do you have for new PTS employees as we head into 2023?
“Realize you are now a learner. Be open to new experiences and accept help. Coming from a position where you knew it all to one where you know nothing is overwhelming for everyone.”
— Amy Howell, Customer Service and TSS
“Make sure to ask for help when needed. We are all so busy and juggling different projects, we forget to check in with the new people. PTS has great people and would do anything for each other, we’re just pulled in multiple directions right now.”
— Ann Fausset, Operations
“Get to know and understand the business, the team and wider global family, be proud of what we do every day, improving health all over the world.”
— Andrew Greaves, International Sales
“If you have a good team, you can do just about anything. Never be daunted by the challenge you’re facing.”
— Carolyn Schmitt, Quality & Regulatory
“We will face adversity in 2023 with getting the time share with our distribution partners. We have to be creative with our resources and think past the typical avenues from the past.”
— Gary Johnson, U.S. Sales
“Keep the focus moving forward. Maintain that drive or urge to find new business and to challenge yourself every day. “
— Jeremy Farmer, U.S. Sales
Customer Corner:
What’s Next?
2023 Market Forecast
The shift from centralized to decentralized healthcare delivery is creating new opportunities for PTS Diagnostics all over the world. We can expect our growth and recovery to continue into 2023 and beyond, according to two of our market experts, Vice President of U.S. Sales Cliffe Allen and Vice President of International Sales David Brandt.
“Healthcare providers have recognized that you can’t look at just COVID. Many countries are developing programs now to reach out to those who are at the greatest risk not only for COVID-19 complications, but other life-threatening diseases and comorbidities like diabetes and heart disease. We’re seeing increasing demand for our products in multiple countries,” David said in a recent interview.
As the demand for our products increases, so does our reach into various emerging markets for point-of-care-testing. Cliffe said that the days of centralized healthcare delivery—where most patients would expect all their healthcare needs to be fulfilled through one doctor’s office or hospital system—are behind us.
“It seems that the historic model of a patient’s healthcare experience being transacted in a physician office is fading away. Many alternative channels like pharmacies and home health agencies are being heavily utilized by employers and insurance companies for population health. PTS has to stay ahead of these trends by continuing to partner with new healthcare service providers, so that our products are placed before the patients arrive.”
Ironically, physician offices will continue to be our biggest growth target in 2023 despite a decrease in demand for their services. Physicians who want to stay in business will need to compete with pharmacies and home health agencies for patients by offering faster, better lab tests and patient-friendly services. Our Field Sales and Inside Sales teams and our partners at MedPro will be instrumental in allowing us to open more doors in that sector.
Other groups who are helping us open doors right now are our partners at Trividia and Sinocare, and our very own Quality and Regulatory team, especially in international markets.
David said that the incredible leadership of the Quality and Regulatory team combined with the efforts of many people in several departments across the organization on IVDR and UKCA registrations have put us in a great position for expanding our sales in the EU (European Union), the UK, and other regions around the world.
Also, because Trividia has introduced us to some of their customer contacts, and because both of our international sales teams can now cross-promote products from both companies, we have been able to drum up more overall interest across the entire combined portfolio. David expects that those opportunities will only continue to grow in 2023.
There is also a lot in store for PTS and Trividia synergies on the U.S. sales front. Several of the objectives of the Transformation Team—on which Cliffe serves as a leader—are focused on additional efforts to bring the two companies together.
“We have already jointly attended conferences, and I continue to work closely with my counterpart, Gregg Johnson, at Trividia on business building opportunities. Certainly, more to come on that.” Cliffe said.
While there are a lot of exciting possibilities on the horizon, 2023 will not pass by without its challenges. Supply chain issues may continue to make our transition to “just-in-time” inventory practices a bit bumpy. And the turbulence may increase as demand increases and customers’ expectations of acceptable lead times continue to shorten. Cliffe said that this “puts a tremendous amount of pressure on our manufacturing and shipping teams and our Quality team who has to test all of our lots as they are prepared for shipment.”
We are also beginning to see more competition, as other medical devices companies try to find their niches in the rapidly changing healthcare market. We will need to remain vigilant on developing new products and enhancing our current offerings with better connectivity features.
While some of these projects may seem daunting, both David and Cliffe are confident that we will continue to find ways to overcome any limitations and our products will continue to play an even greater role in increasing access to diabetes and cardiovascular disease care around the world.
“It’s a great time to be at PTS and I’m excited to take part in what’s coming next.” David said.
Product Highlight:
2022’s Top Products
PTS Employee Spotlights
George Spoerl
Senior Manufacturing Engineer
When did you join PTS?
May 2022
Name three hashtags that describe you.
#NotOnSocialMedia #iLiveUnderARock #ItsPronouncedOctothorpe
Favorite place to “get away.”
I love to go camping with my wife to get away from it all and disconnect from the internet. My runner up would be a ski lodge vacation to hit the slopes all day and hot tub in the evening.
Best part about your job at PTS?
I love being involved in critical decisions that steer the direction of our operation.
Favorite part about working at PTS?
The teamwork here is impressive to say the least. The way everyone can come together to drive creative solutions often on strict timelines. I am so honored to say that everyone I have met here at PTS is actively looking out for each other and for the best interest of our company.
Secret Talent?
Not necessarily a secret, but many people here may not know that I used to be the varsity tennis head coach for a high school back in Wisconsin before we moved to the great state of Indiana.
One thing you can’t resist?
A ‘Good Deal.’
Best advice you’ve ever been given?
The world offers you comfort. But you were not made for comfort. You were made for greatness.
Wahnetta Beverly
Automation Supervisor
When did you join PTS?
September 21,1998
Name three hashtags that describe you.
#Dedicated #Considerate #Helpful
Favorite place to “get away”.
Home doing crafts, and walking my dog.
Best part about your job at PTS?
Working with and meeting an amazing group of people.
Favorite part about working at PTS?
Producing the test strips. Running the automated machines.
Secret Talent?
I love to do crafts. sewing, embroidery.
One thing you can’t resist?
Best advice you have ever been given?
Do unto others.
Grant Barry
Territory Sales Manager - North Central
When did you join PTS?
January 2022
Name three hashtags that describe you.
#Lively #Neighborly #Loyal
Favorite place to “get away.”
A day on the golf course with my good buds is the perfect place for me to get away.
Best part about your job at PTS?
Being on the sales side of the business means that no two days are ever the same. I like the challenge that this sort of working environment presents.
Favorite part about working at PTS?
I like the fact that I have been tasked with a job to do, and that I’m given the resources and amount of space required to get the job done. Also, I like that we bring a quality product to market that I can stand behind. As a salesperson, having confidence in what you sell is pretty important.
One thing you can’t resist?
Taking over the kitchen during the holidays.
Best advice you have ever been given?
“Eat at a local restaurant tonight. Get the cream sauce. Have a cold pint at 4 o’clock in a mostly empty bar. Go somewhere you’ve never been. Listen to someone you think may have nothing in common with you. Order the steak rare. Eat an oyster. Have a negroni. Have two. Be open to a world where you may not understand or agree with the person next to you, but have a drink with them anyway. Eat slowly. Tip your server. Check in on your friends. Check in on yourself. Enjoy the ride!” — Anthony Bourdain
Derek Page
Customer Service Specialist
When did you join PTS?
June 2022
Name three hashtags that describe you.
#Motivated #Confident #Family
Favorite place to “get away.”
The Gym!
Best part about your job at PTS?
The ability to learn something new/different everyday, with growth potential.
Favorite part about working at PTS?
The teamwork, every role and position is key to the success of everyone.
Secret Talent?
Yes! I can sing!
One thing you can’t resist?
I can not resist seeing my kids excel in all they do.
Best advice you have ever been given?
Why stress/worry about things that are out of my control or can’t change.
HR Corner Reminders:
Find Great Deals at LifeMart
Thinking about signing up for a virtual gym membership or meal delivery service to help you meet your 2023 wellness goals? Planning a vacation for 2023? Thinking it might be time to get a new phone? Don’t forget about LifeMart! You can find great deals there on all of these items and more.
ADP: Myself > Benefits > Employee Discounts – LifeMart
Use Your Floating Holidays
Before Dec. 31
Please be certain to utilize all floating holiday before the end of the year! These cannot be carried over into 2023. Employees may carry over up to 80 hours of PTO hours into 2023. Anything over 80 hours will be forfeited at the end of the year.
***CA employees are exempt from this PTO carryover policy as a separate policy is in place in conjunction with state laws***
Help is Here!
The Fourth Quarter and End of Year holidays can be stressful and overwhelming. We encourage all employees to utilize our Employee Assistance Program:
EAP Website: www.GuidanceResources.com (WEB ID is ONEAMERICA3)
2022 Service Awards
Congratulations to the following Service Award Recipients!
Twenty Five-Year Anniversary
- Brian Yates
Fifteen-Year Anniversaries
- Ben Benedict
- Nele Taevere
Ten-Year Anniversary
- Randall Cundiff
Five-Year Anniversaries
- Andrew Greaves
- Gary Johnson
- Scott Lee
- David Miller
- Andrea Sauceda
- Margarita Velazco
- Lucia Lam
- Precioso Pe Benito
Quarterly Question
Outside of jewelry, the best present I ever received was an early Xmas gift…my son was born December 13th and he has been a joy his whole life! I’m not going to share how old he is!!!
— Beth Russell, Sales – U.S.
Easy answer. My wife and children!
— Tony Colman, R&D and Engineering
A jacket that my mother made for me. She spent hours quilting and sewing it, in my favorite colors.
— Heidi Strunk, Quality & Regulatory
The time that I receive from family and friends when we get together.
— Carolyn Schmitt, Quality & Regulatory
My Boys – I know. Mushy answer.
— Ann Faussett, Operations
Best Gift Given/Given to someone else is a combo – In 2020 my family chipped in and purchased 4 plots of land in Scotland for each other and we all became “Lords” and “Ladies”. It was one of those covid purchases around the holidays and the money goes to a good cause. It was a fun gift; each plot is one square foot so technically we own that land for the remainder of our lives and we all became Lords & Ladies.
As a kid, I remember the best gift I received was a Barbie Dream house (complete with elevator, which you essentially had to pull with a string).
Me and my sister played with it until it literally fell apart many, many years later. One of the highlights of my childhood! As an adult, the best gift for me is any time spent with my family; it is the best gift of all.
— Latasha Little, Marketing
The best gift I’ve received AND given is: the gift of TIME. Instead of gifts, my three sisters and I plan a brunch in January after the Christmas dust settles. We go out to a fun brunch place and catch up and visit with each other (this tradition has now been extended to include husbands, significant others, THEIR siblings/spouses, and of course…all of our kiddos!)
— Jessica Gahimer, Human Resources
My two wild, wonderful children.
— Andrea Sauceda, Marketing
— Andrea Sauceda, Marketing
When I was able to get my husband
to take his first trip to Europe to visit me in Germany.
Best gift ever given was the Walt Disney World annual pass for my daughter
— Andrea Sauceda, Marketing
Holiday Season with PTS Diagnostics
Thank you for celebrating the holidays with us!
