A Bright Future Ahead, page-47

Mondy,

Reading Your post yesterday made my night! You have written this so well and it’s so refreshing to hear on this forum someone actually recognises the amazing opportunity to help people with asthma as there isn’t anything that caters for them atm. Where to start about the transition led by Marjan Mikel....


In all the years posting here your story has prompted me to share some background information with how a Marjan came on board.


After years of frustration, a group of shareholders, got together in mid-late 2019, to make some major changes to the board and managment because progress wasn’t what it should have been - this is demonstrated by the level of progress the Marjan-led team has delivered in the past 14months.


This group of shareholders in the top 50 went through a process to find the right team. Many of these shareholders post here and know several that post here in the top 10 list of shareholders.



Marjan Mikel was the best suited candidate and stood out head and shoulders above the rest. One could say it’s a match made in heaven. His background in sleep apnoea through the development of Healthy Sleep Solutions - HSS (where Resmed took a cornerstone investment of 10% in 2007) where he took it to $70m revenue p.a in 6 yrs, is a perfect example of his capabilities. It was subsequently acquired by Air Liquide ($40bn multinational-company in France). DYOR on that background.


Marjan lead HSS from an idea through to onboarding about 7000 gps and sleep patients to be Australasia’s largest sleep apnea monitoring service - Resmed was its biggest client by far. The skills needed by RSH are almost perfectly matched to Marjan. There are many parallels between measuring breath sounds in patients through HSS (sleep apnea) and now monitoring and recording breath sounds in asthma. The sleep apnea solution was a very new industry back then and it took a pioneering approach and look at it now! This opportunity in Asthma is similar and global.


So Marjan obviously did his DD on the RSH tech and decided he could commercialise it and improve asthma patients health outcomes.


Since November 2019, The new teams’ achievement of TGA, CE mark, FDA, distribution agreements with CIPLA, already signed up 500 pharmacies (4000 retail pharmacies in Aust) and growing. Also they totally refined the device to reduce costs of goods (wheezo) by 85% - so I think people should give credit where it is due.


Going forward, If you Give them a further 4-6months to integrate a business model for a new product and develop a new market it’s not unreasonable.

They have achieved and delivered what they have said and if things take longer - like FDA or receiving input Materials for the device cause of supply chain delays due to COVID, then that’s just business and life.


His previous success at Merck, HSS and what he has already delivered at RSH tells me we are in good hands.


General comments:


In terms of Aussie sales - people need to understand that you need to allow a company time to onboard all the pharmacies they are targeting, integrate within their existing marketing strategies within each banner group, educate their staff and develop wheezo support to those staff and customers as they come on and feed the supply into these channels when ready. The distribution machine is being built. Just be patient.



If people are impatient they can sell - gives others who appreciate this a cheaper entry point. But this won’t be a permanent situation.

The product is needed, it’s robust and clinically validated and look at yesterday’s ann on the Calibre of people attaching their names to RSH ..;-))


It’s a new sector as asthma monitoring doesn’t exist right now and if the success of DEXCOM in diabetes monitoring, or Resmed in sleep apnea monitoring etc., are anything to go by, it shows that if RSH get it right, the opportunity is mind boggling. Even if we get 1% of asthmatics using this over time then the shareprice could be up ten fold by any metric.


We are at the beginning of a journey which I hope we all benefit from, as do, more importantly, patients and families dealing with asthma.


Mondy,

once again thanks for your very well written post on Marjan confirming his credentials and your subsequent posts - you have added tremendously to the quality of the analysis and discussion on this thread. I can’t thank you enough!


Ps. Let us know if The family friend of yours from Merck has done more DD and his further comments - once News flows through networks like that, you can get real buy-in from investors backing managers they know can get the job done and who have a track record of delivering ;-) exciting times to say the least...


Onwards RSH!!

pps. You should email Yolanda to thank her (the AFR journalist who wrote RSH up on Tuesday - I think her email was at the bottom of her article). I’m sure the more positive comments she receives will enamour her to continue to follow as RSH continues to deliver.