Ann: US Medicare payment for new category 1 code announced, page-21

Keep in mind the SphygmoCor has been used in a heap of trials – over 900 to be exact. If you've read a medical journal you’ll notice they generally refer to the device by name. For condition “X” the citation will include a reference to “Sphygmocor”. So the device is instantly associated with the condition or topic being discussed. Do you think a regular practitioner has the time and inclination to perform the analysis and take a punt on a competing device that might or might not perform at a similar standard?

Given the short payback period why would an overstressed medical professional waste his or her time on competitor products – especially given the trivial cost differential? We’re not talking hundreds of thousands of dollars here.

SphygmoCor is the gold standard for a reason. It has the right people, the right relationships and the CASH to make the most of the opportunity. Competition will come, but I imagine it will be years away once non-invasive CB measurement has replaced the old way of doing things. By that time, I imagine ACG will have a market cap multiples of where it is now and the competitors will have fallen by the wayside or sold their IP to larger players.