I've had a read and I think page 5 is probably the best summary for anyone new to the stock. I'm aware of most of this stuff as I've been holding the stock and the options for many years.
Below is taken from the report and parts that are bold have been highlighted from my end.
Ten reasons to look at Medibio
1) Medibio has developed a novel, data-driven solution to objectively screen for mental health disorders. Besides being a non-intrusive technology, Medibio’s solution is highly reliable and cost-effective, and can be easily administered to patients by primary care personnel.
2) Medibio’s unique sleep-based heart rate technology is patent-protected and based on over 20 years of research on the correlation between mental health and the patients’ heart rate.
3) Medibio has research partnerships with renowned global universities, including Johns Hopkins University and the University of Ottawa, which have, through several pilots and clinical studies, aided in the corroboration of its technology.
4) Barriers to entry. Besides patent protection, Medibio’s vast database of electrocardiogram data, along with corresponding clinical psychiatric diagnoses that has over many years contributed to its intellectual knowhow, poses a significant entry barrier for new entrants.
5) The company has developed multiple offerings with different target markets and commercialisation routes in mind. Medibio plans to offer four distinct solutions across its regulated and unregulated business units, and this will potentially allow the company to benefit from diversified revenue streams.
6) Mental health issues are on the rise, with huge costs to the global economy to the tune of US$1tn annually. Over 350 million people suffer from depression in the US and Europe alone and this excludes people suffering from high anxiety levels. The key challenge with current diagnostic systems is that they lack objective measurement and are time consuming. This is where Medibio’s solutions can help by providing early and clear screening, which can lead to effective treatment and lower costs to the economy and society.
7) The company has received CE Mark approval for its solutions in the regulated business segment. The CE Mark approval has significant revenue implications for the company as it allows Medibio to commercialise MEBsleep across the European Economic Community. Additionally, Medibio is also currently exploring opportunities to sell MEBsleep into the large US sleep research market.
8) Medibio’s corporate mental well-being app, ilumen, continues to gain strong traction among employers, which augurs well for the company in its early-revenue-generation stage. This target market is being buoyed by structural tailwinds, including the growing acceptance of mental health issues by employers and the emphasis by governments to create mentally healthy workplaces. Further, COVID-19 has played a significant role in making the mental well-being of employees one of the top priorities of corporates. We believe that with the recent blockbuster Compass Group deal for ilumen, Medibio will continue to focus on global organisations and leverage the structural tailwinds.
9) The current leadership team of Medibio, including the Managing Director (Claude Solitario) and Chief Medical Officer (Dr. Archie Defillo), possesses significant experience in the fields of healthcare technology and mental wellness, which is a big positive for the company in its commercialisation journey across various solutions. Senior Vice President, Jennifer Solitario, is critical in driving the global commercial success of ilumen and very well qualified to be leading the charge. Medibio Ltd Readers should be aware that Pitt Street Research Pty Ltd has been engaged and paid by the company covered in this report for ongoing research coverage. Please refer to the final page of this report for the General Advice Warning, disclaimer and full disclosures. 6
10) We believe Medibio should be valued higher than its current market value. Our intrinsic value for Medibio comes out to be A$0.05 per share in the base case and A$0.08 per share in the bull case. We believe rerating will be driven by three key catalysts: 1) further traction and revenue generation for ilumen, 2) regulatory approvals for MEBsleep and MEB001 solutions in its regulatory business unit and 3) initial revenues from Consumer App.
MEB Price at posting:
1.0¢ Sentiment: Hold Disclosure: Held
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