ImpediMed moves to grow sales Power says ImpediMed (ASX:IPD) has...

ImpediMed moves to grow sales

Power says ImpediMed (ASX:IPD) has been introducing measures to grow sales and more tightly manage cashflow and establish greater cost discipline in the business with the aim of reducing annualised operating costs by 10%-15% by the end of FY24.

IPD focuses on secondary lymphoedema, which is predominantly caused by damage to lymph nodes due to cancer or treatment for cancer with the condition causing swelling of certain parts of the body, usually arms or legs.

The company’s SOZO device, incorporating its trademarked L-Dex technology and bioimpedance spectroscopy (BIS), non-invasively, accurately, and quickly measures and monitors fluid status.

BIS for prevention of breast cancer-related lymphoedema is now included in the globally referenced National Comprehensive Care Network (NCCN) guidelines and the Multinational Association of Supportive Care in Cancer (MASCC) guidelines.

The SOZO device is the only US FDA-cleared and clinically validated BIS solution for the early assessment and prevention of lymphoedema.

The company this week announced the appointment of Tim Benkovic to the role of senior vice president sales and customer success, based in the US and other organisational changes.

Benkovic has more than 30 years experiences in the healthcare sector including most recently at Nanosonics (ASX:NAN), where IPD says he led a large team of sales professionals organised in a pod structure across North America, which achieved significant growth.

“There’s been a fair bit of change with Impedimed at the board level with a new CEO and more management changes coming through,” Power says.

“Importantly, the new team has got in and reviewed the cost base and said it’s going to be between 10-15% lower on a $30m cost base by the end of FY24, which is a good metric to look at and each quarter we should start to see the sales momentum pick up.”

Morgans has a speculative buy rating on IPD and 12-month target price of 20.4 cents.