rpa, qld health & mla

Recently sent an email to Mark Donnison at MLA, seeking his thoughts on ALT's products and their potential, and to raise the question as to the delays in rolling the product out on a widespread scale domestically.

"Dear Mark,

I am a shareholder and investor in Analytica Limited (ASX.ALT).

I note that Medical Australia Limited (ASX.MLA) have secured the rights to market and distibrute ALT's autostart burette and autoflush medical devices within Australia.

Some time ago I read a research report produced by WiseOwl Research that evidenced the abovementioned products can provide substantial cost and time savings to the hospitals, so much so that they in effect may pay for themselves.

This seems like the type of product that can move many million of units per year, and if superior to the current product but still cost competitive, should be widely adopted.

I therefore am curious as to why this has not yet been adopted by more domestic hospitals such as Concord or several of the government hospital networks such as QLD Health.

Is there any light you can shed on this ?"

Mark's response below which he confirmed "all information shared is public, feel free to spread the word!".

"Hi Von

Thanks for your enquiry, your questions are insightful and quite legitimate.

You are right in that the Analytica Autoflush and Autostart devices save both time and money in the critical care environment as well as increasing safety. We agree that the potential for these products is huge and that they should be widely adopted.

The main barrier that we face in getting hospital uptake on the product is that they have ingrained clinical practices that we are trying to change, and that takes time.

The first major hospital to take on the product was Concord General Repatriation and Teaching Hospital, one of the majors in Sydney. They told us that this was the first major change to their clinical practice in fifteen years!

We are now trialling at RPA, and NSW Ambulances are all carrying the product.

In regard to Queensland Health, we have completed trials in some of their hospitals and are now waiting for their purchasing team to load the products on to their system so the hospitals in question can order.

In summary Von,

• yes the products have huge potential both domestically and internationally
• We are leaving no stone unturned in gaining acceptance for the technology
• Dealing with government organisations is time consuming
• Changing the way that hospital wards have worked for years means a thorough re-education process, which also takes time

On a positive note, we expect exponential growth as more hospitals commence using the products. We should have a broad distribution of facilities employing this technology in the near future which will give us reference sites for other hospitals to follow.

Feel free to make contact anytime for further clarification,

Regards

Mark"

REVIEWING THE CONTENTS

Impressed that they are trialling at the Royal Prince Alfred Hospital and are already negotiating with QLD Health.

As many on the thread have thought, there appears to be quite a bit of red tape to cut through here, processes and due diligence to pass through, and ingrained clinical practices.

However, if they are successful in conveying the products benefits and cost savings, then expect change to eventually come and adoption of the products by the hospitals.

ROYAL PRINCE ALFRED

- Major public teaching hospital.
- Largest hospital in Sydney Local Health District
- 911 beds

http://en.wikipedia.org/wiki/Royal_Prince_Alfred_Hospital

QLD HEALTH

- 178 hospitals and health care facilities

http://www.seek.com.au/advhomes/qldhealth/2573852_1.htm.profile

These are some big ticket names and could have substantial flow-on effects as Mark has eluded to in his email.

RPA would serve as an excellent reference point, being a major teaching hospital. Coupled with the Concord hospital and NSW Ambulance, this would be a healthy portfolio to show the rest of the domestic market.

QLD Health would be the real price catalyst IMO, as securing 1 or 2 hospitals within the government portfolio could potentially lead to several more in quick succession.

It is my understanding (could be wrong), that once on the QLD Health product list, all hospitals within the portfolio can order the product. No doubt a timely and difficult process, but huge potential once done.

This is purely on the domestic front and still leaves the potential for some interesting progress on the US and EUR efforts.

As always, cannot understand the rationale of the current sellers given the abovementioned.