I was very fortunate to have the chance to attend The Admedus AGM yesterday and also speak for awhile with Dr Chick, our company's COO. The company has made some significant achievements over the past 12 months (every goal they set themselves) and there's an exciting 12 months ahead whilst the build on the strong foundations already laid….
One point picked up by a few already is that CardioCel is now being supplied to OVER 20 centres in The EU and OVER 15 in The US, up from the previous figures in the quarterly… I can hear a few of you already, so what, who cares, what does it matter? Lol, it matters a lot because centre penetration comes BEFORE sales. You don't have one without the other. This point I would have thought obvious and unnecessary of being written out loud although it's a mistake to overestimate some people and so occasionally it is necessary to state the obvious. Lee emphasised the point that these figures were above everyones' expectations 12 months ago and these are guys who have been in the industry a long time. The board and management has much experience in sales and launching products and yet the launch of CardioCel has caught even them by surprise by the rapidity of its take-up.
Over the next 12 months expect to see CardioCel launched in other Asian jurisdictions (Japan, Indonesia, Malaysia?) and South America (Chile, Argentina, Brazil?)
Also, Lee's aim is to be involved with 15 centres in Canada from the 12 months following first sales.
The launch of an ADAPT treated patch for hernia and pelvic floor repairs does not seem a priority for the company at the moment…. such has been their success in launching the product for cardiac repairs in the paediatric and adult market that this will be their immediate concern for at least the next 2 years, or at least that's how I read it.
Lee also made mention throughout the presentation of CardioCel's major competitive advantages over other competing products emphasising both the great advantages of using CardioCel and the major short comings of our competitors. Feedback from surgeons confirms this and during the Q&A someone asked about CorMatrix although I think they said CoreMax…. it was confirmed to me that as Terry has previously stated leading surgeons are now currently replacing CorMatrix with CardioCel due to some recent disappointments with the aforementioned patch. Anyone who understands CorMatrix's market share and market standing will immediately appreciate the enormity of this development. It is massive and for me a signal of things to come as when the immunological (it is the immune response from the patient which leads to the patch calcifying, CardioCel does not have this, ALL other patches do, some in 30 days others in 30 months) and mechanical superiority of the CardioCel patch become better and better established (from increased number of centres (who cares?) surgeons, patients) it won't only be CorMatrix the company is taking market share off but ALL patches as ALL patches calcify, it is only a matter of time.
The highlight of the Q&A session was when an elderly lady spoke to the board about her granddaughter who had had to undergo surgery for a heart defect shortly after her birth and had received a CardioCel patch and was now "thriving." The Grandmother couldn't have been happier and Chris Catlow was very gracious in his response and said that it was stories like this which gave so much meaning to everyone who was working at Admedus and how they all felt so privileged to be part of a company which was continually making such a difference to young peoples' and their families lives. The lowlight of the Q&A session was when a representative of Lane's, asked, with a s### eating grin on his smug face a series of sneaky and underhand questions attempting to intertwine the brokers valuations of AHZ with the directors' own valuations…. There were some other questions in there although the details of which escaped me as they had to do with the internal workings of the Admedus Regen board, the workings of which we are not privy….. The intent was obvious and you could almost hear the collective internal groan as this bloke again and again attempted to sabotage the usually interesting and informative Q&A session which is for me at least the highlight of these meetings. Chis Catlow, again to his great credit, dealt with these questions in a perfunctory and civil manner, although by the end you could tell Chris had had enough and replied to the last question (I forget it) that the matter was now in legal proceedings and that that would be the proper and appropriate place to discuss these issues and not the AGM. For this Chris earned a round of applause and Lane's representative sat down looking embarrassed and chastised. I just wish he'd had shut up earlier as it definitely was a dampener on an otherwise terrific occasion.
It was also emphasised that a partnering deal for the HSV-2 vaccine will take place POST the Phase II trial and that a deal with for the HPV vaccine will take place POST the Phase I trial. Not during as some have speculated.
After the meeting I talked with Julian about how the CardioCel patch was progressing in its entry into the market for heart valve repairs. It is the wish of surgeons that in instances where the heart valve could possibly be repaired, rather than replaced, that this would be their first option. Heart valve replacements lead to a whole range of negative side effects and complications (requiring the patient to be on anticoagulation and other medicine for life to prevent blood clots, this is just one, there are more….) and so repair is obviously preferable although up until now surgeons have not had a patch with the mechanical flexibility and strength (as these heart valves undergo constant massive expansion and dilation as they pump enormous amounts of blood around the body) and without the calcifying issues. Although they have that now in the form of CardioCel which has combined great strength, flexibility and no calcification issues. This is the big growth area for me….. CHD surgeries will do great for the company although its sales of the patch for heart valve repair and other cardiac operations which will promote AHZ to the major league over the following years.
I've had enough writing for now so I'll turn it over to the forum for their thoughts and questions.
AHZ Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
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