The HeraCARE commercial agreement signed with Joondalup Health...

The HeraCARE commercial agreement signed with Joondalup Health Campus (JHC) is more than simply a validation. Mid last year JHC enrolled participants to test the usability of Herabeat, the findings were pretty compelling so it was assumed that the natural progression would be towards a commercial deal. The trial although completed at JHC also sets a solid foundation for the multiple commercial fronts Heramed is perusing. It’s my view that we will see a few other commercial agreements roll out over the coming months (Teleperinatal, eCare21, Hapvida, Sheba, Mayo) as well as an expansion of the JHC one into a broader Ramsay Health Care deal.

At face value the commercial pilot isn’t huge $$, 100 patients who will use the device for say 6 months at $50/m.  $300 per patient * 100 patients = $30,000

The question then is how can they scale within this deal? Well JHC deals with around 3000 pregnancies a year and Ramsay somewhere in the 22k to 25k range. Start to crunch those numbers and you see that we really don’t need to conquer the world to have respectable revenue.

3000 * $300 = $900,000
25,000 *$300 = $7,500,000

I guess where I’m heading with my thought process is that we are seeing management now at a stage whereby they can close commercial deals globally, most potentially company making. HMD is collaborating with 2 of the top 10 hospitals in the world- Mayo Clinic and Sheba as well as Hapvida, Teleperinatal and eCare21. Any one of these relationships have the potential to yield significant revenue for HMD. With CPT codes in the US for Herabeat/Heracare and FDA, TGA and CE approval in place HMD is ready and set.

The recent interview with David Groberman highlights their expectations around a wider JHC and Ramsay adoption as well as some discussion on the wider global rollout.