What’s happening with Jim Heath?
Heath – former head of Stryker Instruments – joined PuriflOH/Somnio Global soon after former $SYK/Stryker Corporation chairman, Bill Parfet injected $9.6m into PO3 and joined the board.
On February 28, 2019, PO3 directors revealed in their Interim Report that they’d held discussions with Heath.
I believe the report retains relevance.
“The discussion commenced on sterilization and sanitation issues within wards, operating theatres and hospitals in general.
“However Mr Heath also described the significance of the issue of sterilization of medical equipment, particularly in the surgical environment and its implication on Hospital Acquired Infections (HAI).
“Mr Heath will advise PuriflOH on the commercialization of the FRG within the medical sector.”
“This is an important step in the Company’s plans to access its various market segments.”
Directors then unveiled their Business Development Plan.
“The Business Development Plan seeks commercial development agreements with OEMs who have the reach to provide global distribution of our technology.
“These companies also bring capability in navigating regulatory requirements, strong balance sheets and pre-existing market penetration while operating ethically within the global IP protection framework.
“We seek to introduce the FRG technology through the use of their trusted household names within respective industries.
“Discussions have commenced, though it needs to be noted that we remain bound by confidentiality in these discussions.
“Information will be provided when it is deemed material and appropriate.”
I would have liked the current BOD under the chairmanship of BP to be similarly expansive in the 2020 interim report released 10 days ago.
Yet there’s no mention of HAI, surface and equipment sterilization. Nor Jim Heath.
At the annual meeting on November 30 2019 I asked Bill Parfet whether Jim Heath was still actively involved with PuriflOH.
Mr Parfet replied that he was.
And sources close to PO3 have recently confirmed that he’s still working for the group.
I understand there are a number of others in Heath's sterilization team though I’m not sure whether they include some who’ve worked for Stryker or, indeed, some who are currently working for Stryker.
The latest Interim Report provides is less-than-expansive on sterilization.
It says: Development of the recreational water and sterilization systems continue and remain important to the Company’s overall commercialization strategy.
While directors mention COVID-19 for the first time, they provide no elaboration.
Let’s apply some logic.
Who would Bill Parfet first confer with about COVID-19 strategies?
Surely two senior colleagues - One Professor Pravansu (Jewel of India) Mohanty. Another, Jim Heath.
We can only speculate on what their advice might be and how Mr Parfet might respond.
Given the Stryker Corp pedigrees of Bill Parfet and Jim Heath, it would be logical to assume Stryker Corporation is one of the OEMs PO3 is in serious talks with.
Indeed, I understand that Stryker is evaluating how PO3’s FRG tech can reduce its material costs.
Despite a market mauling in recent weeks $SYK maintains a market cap of $US70b.
But if PO3 is conferring with Stryker, why doesn’t PO3 tell the market? After all, there is now a precedent.
On February 24, 2020, Melbourne-based minnow $DVL/DorsaVi announced that it had signed an evaluation agreement deal with SYK’s German subsidiary, Stryker Leibinger.
DorsaVi’s decision to publicly unveil a deal with Stryker came after it had early deemed a six month Stryker evaluation agreement as “confidential”.
I assume DVL CEO Dr Andrew Ronchi would not have identified Stryker without the approval of Stryker’s Head Office. This resides in Kalamazoo, MI, Bill Parfet’s home town.
Under the deal, Stryker will use and evaluate dorsaVi’s sensors, software and algorithms to assess patients and share this data with leading clinicians.
Dr Andrew Ronchi: “We are excited to…allow Stryker to capture data insights from real patients and explore the relevance of this data in improving the management of patients with orthopaedic conditions.”
In its Interim Report released on February 25, DVL was effusive about Stryker.
“The global orthopaedic market is estimated to be worth more than US$66 billion by 2023 and is an exciting strategic market opportunity for dorsaVi.”
Market response to the Stryker revelation? Zip. The DVL market seems utterly oblivious.
On the other hand, if PO3 was to emulate DVL and formally confirm a link with Stryker Corp, I sense PO3 shares would respond with more than a minor up-tick.
Hence I trust that PO3 will soon share more info about its sanitation/sterilization activities and the role of Jim Heath and his counterparts at Stryker Corp.
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