Brazilian Motor Vehicle Law Could Boost Psychemedics' Profits

Stephen L Kanaval |

Psychemedics Corporation (PMD) has a deeply rooted partnership in Brazil thanks to Psychemedics Brasil, a locally-owned distributor. The corporation is the leader in drug detection in hair follicles. Psychemedics patented testing system is used at U.S. police departments, Federal Reserve banks, and many other important public sectors. Now, Psychemedics along with Psychemedics Brasil will work with the Brazilian Transportation Department to keep roads clear of drivers under the influence.



Hair analysis is the most effective way for an organization to scope an individual for drug use. Government organizations along with oil and gas companies, where high concentration is vital, have found the testing invaluable. Psychemedics non-refrigerated hair testing is so important because it opens the analysis window of drug use to 100 days. The Brazilian government clearly sees this as the best way to screen drivers. Psychemedics’ laboratory essentially liquefies the hair to release all the metabolized oils and enzymes. This test is advanced and defensible in the court room. Brazil is looking to save millions of dollars in healthcare costs due to accidents and risk allocation. Here is Chairman and CEO Raymond C. Kubacki with more information on the Brazilian contract from the recent quarterly report:

"…We believe the Brazil opportunity will now begin shortly. We believe the administrative delays have been resolved as the Brazilian government has announced March 2nd, 2016 as the starting date. As previously reported, the Brazilian government passed a law in 2015, signed by the President on March 2nd, that required professional drivers in the transportation industry to pass a hair drug test when obtaining or renewing their driver's license

In addition, the Acton, Massachusetts- based company has also added two brand new drugs to its testing panel: Oxymorphone was added to the synthetic opiate testing panel and D-Amphetamine/Adderall was added as an option to the Amphetamine panel.

As drug use rises worldwide, companies will in turn reach out for better testing. Psychemedics, with its highly efficient and highly effective hair testing, will certainly benefit. For example, a study done by the National Transportation Safety Board reported by a significant uptick in pilots under the influence of illegal drugs. Across sectors, the conclusion that key employees are using illegal drugs is growing.

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Companies

Symbol Name Price Change % Volume
PMD Psychemedics Corporation 26.62 0.31 1.18 9,803 Trade

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