Key points from a recent article posted on 5th Aug 2020.
What investors are looking for
For Altor Capital portfolio manager David McNamee, companies in the medtech space have
a number of boxes to tick before getting investment approval.“You’ve got to look for businesses with a true value-add from a tech and science point of view, that can actually tie that together while also clearing the relevant regulatory hurdles,” he said.“It’s all well and good to be looking for growth but you’ve got to be paying a reasonable price for that growth, and I’d stress that point.“So you really need to drill into the risk/reward, and what you perceive the downside protection is in these investments.”
In terms of company’s that meet the criteria, McNamee said Altor held a position in HeraMED (ASX:HMD), the telehealth platform which offers an at-home pregnancy monitoring solution.Along with a tailwind from COVID-19 for remote health solutions, McNamee also flagged US Food and Drug Administration approval for HeraMED’s monitoring device.“They’re capped (market capitalisation) at less than $10m, with a strong management team and a chairman — Ron Weinberger — who has a track record with successful companies (including Nanosonics (ASX:NAN)),” he said.“Plus they’ve got tech that’s been proven and have jumped through the relevant regulatory hurdles. So what’s that worth?
Well we think it’s worth more today than before corona, and if they can commercialise it the upside is significant for that company."
Also, see a real life example of why Herabeat will be a disruption for the prenatal pregnancy market in the near future. Further positive clinical trial results being released soon should validate our market and gain traction among health insurance, clinics and hospitals.
"Herabeat Smart Fetal FHR Monitor for home use is finding traction across India" said Her Healthcare business mentor.
Interestingly, this comment was acknowledged by the board just posted 3 days ago!!
This is a screaming buy but the market has yet to become fully aware of it. Time will tell, good luck to all!
(20min delay)