Vyking,I think the problem with these calculations is revenue...

Vyking,

I think the problem with these calculations is revenue versus profit.

Revenue of $2mil / month is obviously not all going to be profit. It all depends on the profit margin. If they have a 60% profit margin (just speculation here, I don't have a clue what the real figure is) then it costs $0.8mil for the manufacture, quality control testing and transport of the LVADs, so out of $2mil revenue they only have $1.2mil profit.

Expenses per month are not all constant. As implants increase profit increases, but also manufacturing costs increase. Some expenses are constant, e.g staff wages / travel, whereas manufacturing expenses will increase with implants.

I've done some rough calculations and worked out they will need the money.

I believe this difference between revenue / profit is why one market analyst predicted 600 implants annually to be profitable.

I don't think profitability level will be this high however, but still it will be higher than what they're doing at the moment.

I welcome any opinions on this view.