Medline Inc. (NASDAQ: MDLN)

Medline Inc. is the largest provider of medical surgical products and supply chain solutions serving all points of care based on total net sales of medical surgical products. The company was founded in 1966 and delivers mission critical products used daily across hospitals, surgery centers, physician offices, and post acute facilities. Medline’s mission is to make healthcare run better by delivering improved clinical, financial, and operational outcomes. The company operates a differentiated distribution network of 70 global distribution centers, warehouses, cross docks, and transship facilities, 45 of which are in the United States. It provides next day delivery to 95% of its U. S. customer base. Medline utilizes artificial intelligence and robotics technology in over 26,000,000 square feet of warehouse space in the United States. It maintains a fleet of more than 2,100 MedTrans trucks.

Medline generates revenue primarily through the sale of approximately 335,000 medical surgical products including surgical and procedural kits, gloves, protective apparel, urological and incontinence care, wound care, and consumable lab and diagnostics products. Revenue also comes from supply chain optimization services such as consulting, outsourced warehouse and technology management, put away ready packaging, third party logistics, inventory rationalization, and route planning. The company distributes its products through its own fleet of MedTrans trucks and a network of global distribution facilities.

The company operates through two reportable segments Medline Brand and Supply Chain Solutions.

• Medline Brand offers approximately 190,000 medical surgical products organized into three categories: Front Line Care, Surgical Solutions, and Laboratory and Diagnostics. Front Line Care provides wound care, exam gloves, skin care, incontinence products, environment cleaning supplies, textiles, hand sanitizer, durable medical equipment, patient plastics, and decolonization and infection control products. Surgical Solutions offers operating room and perioperative items such as surgical procedure trays, drapes, gowns, personal protective equipment, sterile wraps, surgical instruments, surgeon gloves, procedure kits, and orthopedic implants. Laboratory and Diagnostics delivers point of care testing, analyzers, instrumentation, lab and diagnostic consumables, diagnostic instruments, vital signs monitors, and anatomic pathology and phlebotomy products.

• Supply Chain Solutions provides approximately 145,000 medical surgical products sourced from over 1,300 third party suppliers including leading national brands. It offers supply chain optimization services such as consulting engagements, outsourced warehouse and technology management, put away ready packaging, third party logistics, inventory rationalization, and route planning.

Medline holds a leading position in the medical surgical market due to its vertical integration as both a manufacturer and distributor, its Prime Vendor model, and a differentiated distribution network. The company competes with other large medical surgical manufacturers and distributors such as McKesson, Cardinal Health, Owens & Minor, and Henry Schein. Medline’s competitive advantages include its broad proprietary product portfolio, scale that enables lower prices and better service levels, and a high Prime Vendor retention rate exceeding 98% over the past five years.

Medline serves hospitals, surgery centers, physician offices, post acute facilities, and other health care providers across the United States and internationally. The company’s customers include acute care centers, ambulatory surgery centers, clinics, and long term care facilities. While specific customer names are not disclosed, the base consists of diverse health care institutions that rely on Medline for medical surgical supplies and supply chain solutions.