pericoach sales

“Do you believe that the availability of this device is going to change the health practices of any significant number of women?” (Meerkat).

It depends on what your meaning of “significant” is? Significant in raw data/number of women? or significant in terms of sales revenue for the company?

The real question should be “Do you think that there will be enough sales of this device to increase current shareholder’s value?”

In Analytica’s 2009 marketing research, only 15% of women would be willing to use a device to assist with pelvic floor exercises. Then, according to their Investor Presentations, if only 1% of these 15% of women actually buy the pericoach, it will generate upwards of $4mill of sales per annum in Australia (page 10 investor presentation 26 Nov 2013).

So,
15 women in every 100 would use a device.
1% sales assumes 0.15 woman in every 100 women actually buy the device.
= 15 women in every 10,000

So I believe a more appropriate question from a shareholder perspective is, do you think that 15 women out of every 10,000 would buy this device?

There are around 9million women over 15years old in Australia. Using the above numbers that would mean 13500 units, if 15 in every 10,000 women purchase the Pericoach. 13500 x $300 per unit is $4.05 million.

Last announcement noted that there are 200 Australian clinicians waiting in anticipation for the release of the Pericoach. I’ve got no idea how many clients they each would have, but say each has 50 clients to whom they would recommend trying the Pericoach. That’s 10,000 units from clinician driven sales. Perhaps then,13500 units is entirely within the realms of possibility for Australian sales.

Add in US, Western Europe and Brazil and the sales for 0.15% of women generates $158million.

Remember that ALT currently only has a market cap of @$20 mill.

Then perhaps moving on to Taiwan, China, Japan....

The potential revenue is impressive on such a small percentage of uptake.

Still holding and waiting, with cautious optimism.