I-Flow Corporation designs, develops, manufactures, and markets technically advanced, low-cost ambulatory infusion systems that seek to redefine the standard of care by providing life-enhancing, cost-effective solutions for pain management and infusion therapy. The company's products are used both in hospitals and alternate-site settings. I-Flow manufactures a growing line of compact, portable infusion pumps, catheters, and pain kits that administer medication directly to the wound site. These systems also administer local anesthetic, antibiotics, nutritional supplements, and other medications. The company focuses on two distinct markets: Regional Anesthesia and Intravenous (IV) Infusion Therapy. Since the third quarter 2006, I-Flow is no longer actively participating in the Oncology Infusion Services market through the activities of InfuSystem, Inc., previously a wholly owned subsidiary of the company, which provides infusion pump rentals and related disposable products, primarily for chemotherapy. After some delay, I-Flow finally sold InfuSystem to HAPC, Inc. in late October 2007. InfuSystem's revenue is primarily derived from billings to third party insurers. Based on 2006 results, Regional Anesthesia, IV Infusion Therapy, and Oncology Infusion Services contributed 62%, 24%, and 14%, respectively, to total revenue.
The company's strategic focus for future growth is on the Regional Anesthesia market, and more specifically, on its pain relief products marketed under the ON-Q brand. I-Flow is utilizing the resources and expertise of InfuSystem to drive sales in the Regional Anesthesia market segment. In January 2004, I-Flow initiated its new ON-Q Third Party Billing Program, enabling ambulatory surgery centers (ASCs) to provide patients with this emerging standard in post-surgical pain relief, and to provide I-Flow with reimbursement for the cost of the device. Piloted in 2003, the program facilitates the adoption of ON-Q by physicians and minimizes paperwork for participating ASCs. Specifically, InfuSystem processes claims submitted by the centers, and directly bills a patient's insurance company. In this way, ASCs can reduce the hassles related to billing and collecting for ON-Q. After the sale, InfuSystem continues to provide third party billing services to I-Flow through a license and services agreement. The company intends to continue to expand its sales and/or marketing efforts, to further penetrate the U.S. post-surgical pain relief market for its ON-Q products.
On October 9, 2009, I-Flow and Kimberly-Clark (KMB) announced a definitive agreement in which Kimberly-Clark would acquire I-Flow for $324 million.  I-Flow stockholders will receive $12.65 in cash for each share of stock tendered in the offer.