Patersons Research - BUY, page-32

Reading the report you'll find Admedus has all of the qualities that generally ensure a long and prosperous investment,

i) Products with a strong competitive advantage - Check, there are no patches in the world which can compare to ours.

ii) Strong and capable and trustworthy management - Check, ex Roche, Merck, Cochlear, Baxter et al, they are flocking to AHZ. There is a reason for this! They see where we are headed and want to be part of the journey.

iii) A wide barrier to entry (moat) - Check, surgeons are conservative and practical in their approach to new products, any new entry will need to collect the many years of data we have to get a look in. By this time we should be the dominant force in tissue technology.

iv) Opportunity to grow revenues and profits for decades to come - Check, we have barely penetrated the markets we're in so far, due to previous bad management and bad marketing. THIS HAS CHANGED. Many decades of growth to come.

v) High gross profit margins and eventually, net profit margins - Check, gross profit margins for ADAPT tissue products are soaring, currently, and the report sees them soon at 75%. I see them in the longer term, due to the genius of Scott Bliss, in the mid 80's.