AGM notes - typed on iPhone and formatted as well as I could. A little random and you can get most of the information below from reading the presentation or watching the video but this summary may be helpful for some.
Great to meet Management and the board. I spent quite a while with Wayne, Matthew and Julian. This gave me a lot of confidence meeting them in person.
No capital raising - "my reputation is at stake." We would borrow money rather than raise if we ever needed to. Companies are prepared to lend to us if we ever want a loan facility. Code red targets are on target.
CEO - trying to find the right person. Most of their upside will come from shares and whoever comes on is coming on board for what we will be in the future and not who we are today. Hard to find the right person that will work under Wayne and also not need to be paid a bomb.
All key appointments recently were told the future story of AHZ and after due diligence decided to join. This is why we have been able to attract top talent. WP will stay on as Chairman to make sure we hit our targets and is passionate about our company. For what it is worth he gave up a significant NASDAQ opportunity to take on Code Red and role up his sleeves to address the companies issues.
Our aim is for >50% market share in all key products by 2020. This is a huge target but Wayne's internal target is even higher. He believes our products are simply that good.
CardioCel Neo will be a new revenue stream and selling in Dec. (this was one of the new near term revenue generating products that I have been wanting to hear about). Will be charged at a premium. Scott Bliss has been able to get the required consistent thickness for a patch to suit babies bodies (unique in our market).
We also have a new product to be released in Q1 or Q2 of next year described as a "curved patch" for Aortic repair. This will be unique in the market because the ADAPT process allows for the curve to work. Scott Bliss is doing a great job and is aiming for 90% accuracy rates on production. Scott has introduced some automated processes that have made a big difference and he has paid for his salary 10 times over. He has also sourced new Bovine which is better quality at a cheaper cost.
We terminated the Coroneo contract as it was not in the best interests of the company (not profitable). Maybe when we had excess staff running around but now we have 50% less staff and more products to sell we are too busy selling our own. (Which is the way it should be).
The Infusion business doing well and getting recognition for its work with Adelaide hospital due to our superior products and service. We have multiple promising potential contracts in the pipeline.
The 58% reduction in viral shedding is the important number to focus on in the HSV 2 results. We will be going into phase 3 but can't fund it on our own. We are in partnership discussions and these strengthen with each new release of data.
One of the biggest pieces of news was that we are currently in a collaboration with a large multi national Pharma company in relation to RNA Immuno- oncology. The companies name cannot be released as they are in related confidential programs at present. WP hopes to be able to reveal the name to the market as soon as he can. This could be a big news.
Large drug companies are already very interested in our HPV vaccine.
TGA approval won (or confirmed) and launch for Australia scheduled for Q3 FY 17. (Use of calendar year and then FY year is frustrating. I will stick with F/Y QRT's)
FY 18 QRT 1 for first sales into India which is huge. The increase in costs for 4th QRT FY 17 is due to launching a new product or into a new market, so it would be fair to assume that preparing for launch in India will contribute to this QRT's costs.
Revenue is scheduled to be flat 4th QRT F/Y 17 and is based on seasonality (I got the sense that this is very conservative and will be beaten). I think we can expect a decent ramp up in 1st QRT FY 18 with the launch in India.
VascuCel sales going really well but they need more time before they can update the market. Maybe another 4 to 6 weeks or so. Doctors love it and think it's great so far. WP was quick to point out our fortuitous timing with Baxter pulling out of a market that we have just entered.
Quote from WP - "None of the board are here or motivated by the company being at 40 cents.They are here for a much bigger future. We want to genuinely rival the likes of St Jude's and Medtronic." "We want to stop the day traders and provide a steady and reliably growing share price that we can bank on."
Exciting, interesting and new was the talk of a potential move into TVAR using ADAPT tissue combined with in-house engineering to create a new product. We are testing at present to see if it will be viable but it looks really good. We have a couple of ex Medtronic guys (who know what they are doing!) working on this with us.
20/20 vision - We aim to have 10 seperate ADAPT products by 2020 - not that far away!
While it was never said, it was clear to me that the long term goal (I.e. The power of two) is to split the company up into two companies - Immunotherapies and ADAPT. One gets the feeling that we need to get the whole company profitable first and on a stable footing with a valuation more suited to our prospects and achievements before we would attempt to do this.
WP is particularly excited about the second wave of Mena registrations and future sales especially Egypt. Mexico was mentioned as possibly being ready to sell into in late 2017.
WP was very keen to stress we are not just a tissue company but a medical device company and we will be looking at acquisitions in the future and possibly in Minneapolis (products we can take under our wings) which is where we are headquartered. Minneapolis is the equivalent of silicone valley for medical tech device companies with most of our competitors stationed there.
Matthew Ratty thinks that the new marketing campaign will really resonate with Doctors. They are starting to notice Doctors contacting them more now than ever.
I was impressed to see our questions up on the screen (unedited) and most were addressed. It was a little annoying to hear some older shareholders groan at the number of questions and the length of them. Unfortunately this meant they were rushed a little. (They must of had a hair dressing appointment or wanted a cup of tea!)
So no capital raising, more products to come, India online next year, partnership talks ongoing, code red on target, and 20 million EBIT by 2020.
Easy to apply a 30 PE to this as we will be growing rapidly and have such strong prospects. This would value us at about 600 million MC or 6.3 times today's price in only 4 years.
I have never been more excited to be an Admedus shareholder. I will be holding on tight for the exciting times ahead.
(20min delay)