In just 7 years, the Point-of-Care market segment (excluding glucose testing) has grown from $810 million in sales to an estimated $3.3 billion in 2007. Conservative estimates are for segment growth at CAGR of 8% for the five year period of 2005 to 2010, with estimated sales of $4.2 billion in 2010.

Our addressable market for direct-to-doctor distribution sales volume within the POC (Professional) segment is approximately $3.7 billion, as estimated by Kalorama.

Competitors are already acknowledging the potential disruption to their business model.

Established diagnostic distributors and centralized laboratories stand to lose significant amounts of revenue - in direct proportion to the revenue potential of HPD and our physician customers - as the doctors increasingly acquire rapid diagnostic tests for immediate, in-office diagnoses. This exact concern is stated in the 10k filing of one of the largest diagnostic test manufacturers:

Patient, doctor, and market trends all point in the same direction.

Patients

• U.S. baby boomer generation approaching retirement and global aging characteristics similarly increasing demand for health diagnostics
• Patient demand for simplifying the current diagnostic process that takes too much time and requires too many steps
• Better informed patients due to services such as WebMD®

Doctors

• Increasing need to improve net incomes given the squeeze on reimbursements from payors.
• Mission focus to provide better patient outcomes supported by faster diagnoses and time to treatment
• Productivity focus to improve patient management techniques

Markets

• Increasing recognition by consumers, doctors and payers of the value of point-of-care diagnostics as a means to improve healthcare and patient outcomes while reducing the overall cost through early detection and treatment.
• Emerging use of rapid in-vitro diagnostic tests with home care nurse services on a worldwide basis.
• Emerging use of infectious disease rapid in-vitro diagnostic tests in blood banks, drug abuse rehab centers, and sexually transmitted disease clinics
• R&D in the area of new POC diagnostics that will continue to bring new, more sophisticated and specialized "lab quality" diagnostic tests to point-of-care with a clear need for commercialization expertise in the U.S. market.