A bit late to the thread … but my 2 cents worth …I previously...

A bit late to the thread … but my 2 cents worth …

I previously summarised what I thought the opportunities and concerns were in this post https://hotcopper.com.au/posts/50913603/single

Since then …

Positives …
- there hasn’t been any update on the tbh marketing guff and instead the focus has been and the serious products! In-line with my past criticism of the skin care marketing - this makes me happy!
- Progress on seriously good products …direct selling of BlastX, FDA approval and launch of Xperience in USA, Bactisure launched in Europe, CE and TGA approval for BlastX, burns product to launch with partner etc is all good news.
- Revenue returned and confidence to start to provide some guidance of future revenue (albeit some holders expected greater accuracy etc etc).

But … once again a management/relationship stumble and a vague announcement. This is potentially far more messy than 3M as they have arrangements in place with a couple hundred commission agents and have spent on training training them up. Involving Zimmer in the US whilst keeping the agents would cost margin, whilst axing the agents would presumably incur buyout as well as sunk costs. However, if Zimmer accepted distribution for RoW it could be a win-win (especially if NXS ensured there were sales performance targets in the deal). Possibly a sweetener would be for Zimmer to be able to get the USA business down the track if meets RoW targets.

In hindsight the 3M deal was a setback. However, the result wasn’t what anyone predicted when the deal was done (outside 3M that is). It appears that NXS got out of that deal fairly well … so maybe Judith and the team deserve some support to pull off a negotiation with Zimmer?

The above is an extra concern but I haven’t sold down (partly because the SP had fallen too much by the time I saw the ann. on the weekend). Sentiment unchanged. Hopefully my late reading of the ann. will be serendipitous!

Just my 2 cents worth. Cheers, Simon