STTCOMP HMD FA LONG
TECHNOLOGY SERVICES – MEDTECH SP 16.0c SOI 150m (of which 40m are restricted) CASH ~$2.2m USD (HY)
MC ~$24m
I haven’t put a tip in for a while so hope that this is a decent one.
HMD have a medical grade foetal heart rate monitor which allows the mother to monitor the heartbeat of her unborn child in the comfort of her home. The device has FDA, TGA and CE approvals and is protected by patents:
International application No. PCT/IL2014/050977 (PCT ‘977)
“Medical device with integrated accelerometer for performance optimization”
International application No. PCT/IL2014/050730 (PCT ‘730)
“System for guidance and locating optimal position of Doppler US to measure foetal heart rate”
International application No. PCT/IL2016/050946 (PCT ‘946)
“System and method of detecting labor using electric impedance”
The highlight for me on the board is Dr Ron Weinberger, Non-Executive Chairman. Ron has a very good background in building business. A few recent successes are NAN and EMV where he held/holds the helm. He understands the need to lay solid foundations and from what I’ve seen of him he only gets involved in companies that can truly scale. From my observation HMD have nearly finished building that foundation. The product is close to being ready for the major product rollout.
Recently as part of the commercial drive investor and collaboration partner Mayo Clinic have run US based trials of the product along with local trials at Joondalup Health Campus in Western Australia. A US general manager of operations has been employed to expediate the US rollout. Partner discussions are also being held with leading US based healthcare providers. On home soil a distribution agreement was recently signed.
Heramed once they wind up the marketing can IMO scale quickly. With the unit cost at around $500 AUD they need to sell very few to make a healthy profit for shareholders
10,000 units = $5m
100,000 units = $50m
1,000,000 units = $500m
At 1m units they would have penetrated 0.5% of the market, IMO this is not unrealistic once the product begins to aggressively market. On top on this there is the subscription revenue aspect.
At $24m MC it has potential the potential for a major rerate. First paying customers are expected to be on-boarded this calendar year.
