This announcement alone I think is a going to be a game changer....

This announcement alone I think is a going to be a game changer. There are a few standout lines in there that give some clear signals as to the significance and the rerate events that are likely to follow.

"GEMDC is a multi-ten-billion USD market cap “household brand” company with a wide range of product and service offerings across the health technology ecosystem."

So you have only a handful of companies that are in this category with only the top 2 genuinely fitting the multi-ten-billion USD market cap criteria. It seems the deal is likely to be with Medtronic or J&J, perhaps GE Healthcare at a stretch. So at some stage we can expect an announcement that the deal is with one of these guys. I reckon the market will like that.

1. Medtronic plc $29.7B
2. Johnson & Johnson $26.6B
3. GE Healthcare $19.1B
4. Royal Philips $16.3B
4. Siemens Healthineers $16.3B
6. Abbott Laboratories $16.2B
7. Cardinal Health $13.5B
8. Stryker $12.4B
9. Becton Dickinson $12.1B
10. Baxter $10.6B


So the next question is when? The announcement states:

"Identification of the parties and further details will be provided at product launch in Q1, 2019"

So we know that at some stage in the next 52 trading days there will be an announcement saying that the product has been launched and will know with whom. I reckon the market will like this...

So then what we are still missing is what is the deal worth?

The company have given us a little bit of a teaser in this regard. But I guess the question is what does Cooper regard as significantly financially accretive?

"Jointly developed programs will be branded under GEMDC’s name and are expected to be significantly financially accretive to inHealth and CardieX in 2019"

Sales revenue last FY was a touch over $4m so with my interpretation of this statement a significant shift would require the deal to valued well into the millions.

Something else worth noting is that Craig's performance is rewarded based on sustainable share price appreciation. I reckon his interpretation of significant revenue when revealed will be cause for at least tranche 1 to vest.