Short Term Trading Week Starting: 17 Aug, page-122

STTCOMP HMD, FA long

market cap: 19m

1) very low market cap for a Telehealth company with unique technology and FDA approval with recent placement completed at 9c well supported

2) massive healthcare opportunity in pregnancy at home. COVID will drive adoption:

- The next 6 months are the perfect storm for HMD to rapidly accelerate take up of what was already an amazing product

https://www.google.com.au/amp/s/www.today.com/today/amp/tdna176089

https://www.google.com.au/amp/s/amp.abc.net.au/article/12234906

https://www.google.com.au/amp/s/www.vox.com/platform/amp/2020/3/18/21172874/coronavirus-pandemic-having-a-baby-pregnancy-hospitals

https://www.npr.org/2020/03/30/823575358/pregnant-women-worry-about-pandemics-impact-on-labor-delivery-and-babies

https://www.washingtonpost.com/health/what-to-know-about-being-pregnant-during-the-covid-19-pandemic/2020/04/17/e3b00e90-7f25-11ea-a3ee-13e1ae0a3571_story.html

just a sample of what’s a very real and increasing a global concern for pregnant mothers.

there is also very little evidence yet of the long term damage the virus does to recovered cases, or to babies who may catch it in utero from pregnant mothers

3) what is the technology:

- only clinically validated maternity platform
- medical grade device for use remotely
- ALREADY FDA / CE / TGA approved

4) who are the key players:

- David CEO developed the technology since 2012 with funding support from Israel govt
- Ron Weinberger knows a thing or two about building $bn medical device companies. Led NAN from 29c to $6.18 over 10 years. More recently has led EMV from 34c to $1.57 over the last 2 years
- Ron recently bought $26k of shares on market
- Paul Porter from freeman road (now substantial holder and also running clinical trials) is both a paediatrician and runs investment fund. Freeman road have consulting network accord not only Australia but Boston, Oxford, Helsinki
- David Zarfaty from Medtech edge (now aus distributor) was previously 8 years at GE Healthcare in Business Development
- Alexander Radke US GM for HMD was previously director of Northwell health being NY biggest healthcare provider

5) who are the partners and opportunities

- US mayo clinic primary partner.
- US Qtrly confirms in discussions with ‘several other leading maternal health providers’
- Brazil: Hapvida (provides healthcare for 6.5m people / 95,000 births a year) has completed testing with 750 women and are now in discussions on next stage of commercial opportunities. (Note Hapvida raised over $700m additional capital last year specifically for acquisitions)
- Brazil: additional agreement Oct 19 with inteMED software who partner not only with Hapvida but also others including ‘Pague Memos’ Brazil’s largest pharmacy chain and ‘Unimed’ Brazil’s largest healthcare network
- India: Nov 19 commenced trials in Cloudnine India’s premier maternal health group (20 hospitals / 50,000 births managed a year)
- Australia: freeman road group running trials and very well connected globally
- Australia : medtech edge distribution agreement
- Mexico: May 19 distribution agreement with IBL Holdings
- Germany: Kinderheldin online midwife service agreement Nov 19. (Has partnerships with 50 German health insurance companies
- Turkey: exclusive distribution via Medizane

6) what are some examples of the scale of revenue opportunities?

- ignoring the total global opportunity (eg US over 1m births per annum) the immediate partners of fully follows out in:

Brazil/ Hapvida deliver 90k births a year. At $400 per pregnancy (rental support service retail price) that’s upto $36m fully rolled out, or at wholesale device cost only ($138) direct to Hapvida $12.4m

India Cloudnine at 50k births gives either $20m or $6.9m depending on the revenue model

7) Summary
- massive global market / unique technology
- approvals in place
- stellar team
- multiple geographic opportunities
- they have confirmed first paying customers this CY (within FY20)
- qtrly states multiple US opportunities in discussion to be updated in coming months
- COVID tailwinds
- tiny market cap and now cashed up

what more could you want?