the next month

Interesting month or two coming up for HGR.

The MD, Brian Andrews, travels to the US tomorrow, for a month. Why? To further implement the company's business plan - with the main focus on the US workplace testing market.

The investor presentation was clear on just how much has been achieved already with the US strategy:

1. Development of a new distribution model
2. Expansion of the distribution network (ie enhanced market coverage)
3. Negotiations at an 'advanced stage' with distribution partners in these expanded markets
4. New COO - based in the US - to drive this process more consistently
5. 510k filing for Oraline
6. innovative new product offerings in the urine-testing markets (still more than 90% of testing market - but FDA clearance for Oraline will start to change that)
7. Further product development work (next generation Oraline + testing devices for disease states such as diabetes).

What does all this mean?

Simply, that by the end of this calendar year or early next, HGR will have used its strengthened human resources and expanded distribution network to
close out substantial deals - leveraging off its emerging competitive advantages - particularly the following:

1. an oral testing device with market leading measurement accuracy, simplicity of use and price competitiveness
2. the only oral testing device in the market with FDA clearance
2. a suite of new, innovative urine-testing devices

Don't be surprised to get announcements about deals (possibly late November-through December) pending FDA clearance. Announcements on these don't have to wait for the FDA clearance.

Further down the track, the company can leverage further market penetration from its product development initiatives (new generation Oraline, disease testing, roadside testing etc).

In my view, the US market is the main game in the short term - but this is not to deny the potential and rewards of the international markets - the Mexican and Russian school testing markets and the Chinese ketamine testing markets, for example. These all have the potential to contribute multiple 7-figure sums to the bottom line. And, like some others on this thread, I expect to hear details of the Mexican contracts within the next 4 weeks.

With all these developments coming up, the current SP looks extremely attractive.