Thanks to
@Parimal701 for sharing the report.
(
https://static1.squarespace.com/static/5af533a312b13fb602fe7d7b/t/60b74453a8d3156764e72168/1622623322849/Medibio+initiation+report+3+June+2021.pdf)
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 Medibio1) 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.
(20min delay)