All the best everyone !!! Lisa found my notes from the company presentation held 2 months back.
Who is Life Spot ?
German company that developed a medically approved health platform called Bodytel. The skin app is a by product of all the data that the company is collecting. The skin app is not their main play here.
End to end platform
Bodytel is an end to end platform ( compliance, dose tracking and other stats) that can be tailored for 8 chronic diseases such diabetes, high blood pressure, sleep apnoea etc.Personally, Big fan of the SAAS model. They are scalable, high margins and once initial dev costs are recovered, barely any additional costs and high probability of network effect. That's why I hold some other medical related SAAS companies such as , Pro Medicus, Volpara etc.
So how does the platform work and what is its USP?
1: Integration across multiple diseases, multiple platforms and multiple manufactures
to provide end to end view of an individual's health
Life Spot is medical data an integrate with other platforms that cater to one specific chronic disease and manufacturer specific. For e.g: Resmed's sleep apnoea device which uses their own platform and if the same person uses a Cochlear Device, then data from both those platforms can integrate into Bodytel.
Bodytel is the ONLY medically approved platform that does so across multiple diseases, multiple platforms and multiple manufactures
.
2: Tailoring
The Bodytel platform can be tailored for individual medical device manufacturer so that manufacturer can focus on selling the hardware and not worry about developing a medically certified data platform which is necessary in this IOT day and age.
This is the main reason why Braun chose them as Braun wants to make money from selling the glucose device and test strips while Offering the data platform for their users.
So the tailored Bodytel platform is rebranded along with the Braun device under Omnitest brand
Clients
1: Braun
B Braun is a 170 year old German company that employs 55,000 employees and makes around $6 Billion per annum.
At the moment, Bodytel is only available for Glucose monitor and Life Spot is generating around $1 million AUD in revenue from Braun. They want Life Spot to integrate Bodytel for 6 other products. Development time is very short as the Bodytel is already hooked up to Braun Glucose Monitor. The co will use some of the funds from raise for this.
Look at some of the products here
http://www.bbraun.com.au/cps/rde/xchg/cw-bbraun-en-au/hs.xsl/products.html
From February once Braun's new Glucose Monroe is launched
Revenue
SAAS subscription-€ 600,000 per annum
Platform usage - €120,000 per annum and growing
Revenue of around $1 million approx from this client alone.
From February when Braun launches their new Glucose monitor. Bodytel will move to a subscription model per user per month from Feb- Bodytel will be paid €6.20 per month per user for Braun's blood glucose monitor that is synced with the Bodytel platform. Around 60,000 or 100,000 users ( can't remember. So as numbers grow the company will make what they are making per annum from Braun in a month and at huge margins.
Also, remember this is just for one of Braun's products.
2: Roche
Swiss conglomerate that generates around 63 Billion in revenue.
Life Spot did some work recently with Roche for patients with heart replacements. The valve/ pumps synced to Bodytel which monitors their blood pressure and alerts staff who at present, have to call the patient to take multiple readings daily.
3: TK pharmacy and Anycare
Doing work with TK since 2015 - large diabetes products seller.
Anycare - clients since 2013 - large health company playing the Tele medical space.
4: Beurer ( this is my guess based on research)
Makers of scales - body analysis, weight , body fat etc
https://www.beurer.com/web/en/products/products.php
Roadshow
There was huge interest post the roadshow. Have 2 HK based funds and 1 US based fund onboard. 2-3 times oversubscribed.
Also , have a few family offices on board. Very well connected - one family has deep ties with 20,000 hospitals in China and the other one with Diabetes Australia.
Future pipeline
In talks in the US, with a insulin pen manufacturer who will use the Bodytel platform for a new smart insulin pen.
Play here is big data - the Bodytel platform will also use the data to connect the end user with medicines/ supplement companies. So for e.g: Bodytel can provide for example, Blackmores with a lot of information on vitamin deficient patients and connecting them, opening another channel sales channel for these drug/ medicine manufacturers and additional revenue channel for Lifespot.
Also, can't recall now but think it was Telstra eHealth has shown interest.
Also working on JV with a US company which will speed up the FDA approval to a matter of months, instead of the usual 2-3 year process. The US partner already has FDA clearance and also, have another client undergoing trials.
Finance
The current business stripping away one-off costs is almost cash flow positive.
Almost cash flow break even right now. Low EV and tight capital structure. Raise $5-$8 million with EV of around $6 -$7 million.
All IP, patents and trademarks controlled by the company.
