Who can guess the next product? Not Trophon Gen 2

Nanosonics appoints Dr Steven Farrugia as Senior Vice President Design and Development.

I had a great conversation with our fantastic CEO / President Michael Kavanagh At the 2014 AGM regarding the follow up product to the Trophon.

Michael said he had so many ideas come across his desk and he could jump at any one of them. However, he stressed that whatever they chose to develop had to be great, meet an unmet need, be recommended by his customers and be very profitable for the business. He said he was going to take lots of time to get this right and not rush into anything. He had to be 100% sure it would be a winner.

So for over two years now they have been chipping away at this in the background, building the next significant future revenue stream for the business (with top secrecy the likes not seen in the CIA). This is very exciting given that it will be in the area of infection control and likely appeal to many of our existing customers and relationships. With an established sales force and excellent distribution partners any new product could be launched and sold with minimum additional staff costs for the company. The new headquarters at the old Cochlear site allow for lots of growth and manufacturing capacity.

So now after two years of development we have Dr Steven Farrugia join the team. This is a clear indication to me that we have more than one iron in the fire and at some stage I could imagine an announcement that blows the market away describing a whole suit of products to be released over a set timeframe.

This aspect of my investment in Nanosonics has always been the most exciting as everything is already known and expected for the Trophon. Yes, we will get a second generation Trophon leading to an increase in sales as customers upgrade. Plus the existing model Trophon has a 5 year lifecycle so it will start to get a significant number of customers replacing older models soon (hopefully to Trophon Gen 2) which will build (more like snowball) on top of new sales.

However, it's the left field stuff that interests me the most. With that, does anyone want to have a guess at what our next product might look like or what it might be related to? I heard at an AGM once about something to do with disinfecting the back of ambulances. That's about all I know. Any ideas or input would be greatly appreciated.