I'm not sure if you've only just found this company and haven't followed it in the past, but here's a quick take to your queries:
- Zimmer: They didn't 'give' it away. Zimmer has a massive sales team which will help speed up penetration in areas where NXS simply don't have the resources to target. I suspect the view taken is that if it means giving some of the margins away so be it especially given this is a high margin product and you can afford to. Would you prefer a costly legal battle that drags out and you as the smaller capitalised player suffers, or would you rather focus on growth and have a player like Zimmer on your side at this juncture, I know my choice is obvious. You want to maximise penetration before a competing product gets out there (and they are most definitely coming).
- studies: it was pre-announced that they had 6 in the pipeline? We're talking about changing clinical practice here, A single study isn't sufficient, you need studies targeting each surgical specialty for the relevant surgeons to even be intrigued about your product. Other healthcare peers on the ASX spend decades converting standard of care by supporting further clinical studies, healthcare is a space where clinical practice is slow to change.
- marketing: big spend in conferences to generate discussion and interest, have a clinical champion in every hospital to help spread the word, sales team to then hit up surgeons one by one to convert. It's not that different to what other healthcare companies do tbh.
- business update: official results are released in Feb where management actually talks to the slides and does Q&A . Feel free to email IR.
revenue generation: 4C would show that they are gaining traction albeit not exactly a hocking stick. They don't disclose revenue composition. My view is that because it is a tightly held stock they simply are not being pressured to in any way.
- management: I wouldn't go as far as to say they are incompetent, but I'd agree they've made multiple mistakes in the past. I'm not quite sure why you are bearish on this set of results given it's tracking in the right direction (hospitals, surgeons, revenues, cash receipts).
NXS Price at posting:
$1.12 Sentiment: Hold Disclosure: Held
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