From my initial reading, IPD seem to have a business model that...

From my initial reading, IPD seem to have a business model that involves charging for lymphoedema screening tests (provide the stapler and sell the staples type model?). Revenue seems to be approx $4M/year, which doesn't cover their ongoing expenses, hence need for capital raisings. Last one was about half a year ago.

Looking at the financial statements, the ability of stated goodwill to earn a return isn't apparent, so I'm not counting it, reducing assets by ~10%. Advertising, marketing and administration overheads make up the majority of expenses - it seems staggering that administration expenses are 4 times R&D! What's going on there?

Other coverage: Someone in another thread seems to be impressed that a broker put out a buy recommendation with a price target of approximately double the current (surprise, surprise). AFR seems to suggest some sort of direct reimbursement agreement with insurers is in the works - which is nice, but is there a causal connection between such an agreement and higher sales?

So here is a company that doesn't sell a lot of product at present (why?), has high administration expenses relative to revenues, and has unclear re-rating drivers.


Orbis is loading up, so someone obviously sees something in it. What are the pros? What am I missing?