I enjoyed reading your post. Everything you say about management is right and I share your concerns. They do seem to have changed the top brass over the last couple of months however so I take this to mean the new significant shareholders also had concerned. Having said that the major shareholders do read well and contain good VC's and tech device/ pharm companies.
The major problem here is the slowness in getting acceptance and the ridiculous trial design in the US where the placebo group have to have an anaesthetic without the device. ie Obese, diabetic patients (high risk anaesthetics) have to consent to a dummy proceedure. Sure they get the device in 12 months time but that just means two anaesthetics. Hence the slow recruitment.
The UK study is going well (Scotland is holding them up in terms of recruitment but London and Birminham have almost finished). I emailed the investigators and theysaid they were happy with progress and thought their results would be out at the same time as the US study. They said it worked really well in some people and not so in others. Only to be expected. It was tolerated well mostly.
The French study is only just underway so who knows how long.
So in 12-18 months we will have 3 studies to confirm (or not) effectivness and then get reimbursment. Significant money will then flow. My feeling is it will be successful and become a part of Diabetic management however this is the decision we all need to make.
The studies that have benn presented are not by the company and have been presented at very good international meetings. They are looking into the physiological changes the device produces. The data is good and tells a positive story that also differentiates (positively) it from other techniques such as gastric balloons. I am happy with this.
The issue remains, for me, the large remuneration costs of the company, slow uptake in self pay markets, no word on the South American (Brazil) accreditation and the time it will take for the pivotal trials to conclude. You need to wait another year before these ducks are sitting in a row. They have tried to get company revenue by self pay but it seems to be very slow. The next financials will tell a story.
So, what does this mean? I am down 30-40% here but think it will recover and then pass my initial entry. Close watching is necessary though.
All IMO and DYOR of course.
cheers all
GID Price at posting:
48.0¢ Sentiment: Buy Disclosure: Held
