"Speccy? ..nothing to support the share price?"How long have you...

"Speccy? ..nothing to support the share price?"

How long have you been in the market?

First, the MD is a former head of the surgical products division of the UK's Smith & Nephew. He knows the medical supplies world well and has some clinical authority as both a former GP and and surgeon. Not just a technocratic executive.

Second, he product has very strong endorsement from experts in the field because the results are outstanding.
In 85% of difficult or intractable patients healing occurs in three months. One application a week is as good as two. Training is quite simple. The gel is applied from an applicator like tooth paste.

Third at a time when European budgets are being cut, the cost savings in treating venous ulcers are very substantial in the clinic and in after care.

The same applies in the US where bugets getting out of hand. It locks into the obseity epidemic in the USA.

Dr Mercer is well aware that it will take some while for sales to gain traction in Europe but the two companies which have contracted to bring it into the market have their hospitals and clinics organised already. There is a schedule.

Fourth there is likely to be solid news flow over 2012 as there is global interest and over the next 4-5 years a global roll-out coming.

Avita's healing technology is also excellent, but the cost differential puts it in a separate segment- some overlap but not major.


In over 30 years of market experience I have seen only two or three companies with a product as free of "issues" and such a clear market gap. It is simple to work with (it freeze dies) and will have "pharma" margins while still being relatively cheap. Clinicians will not need convincing that current treatments are broadly ineffective unless the patient is in good health. This is the whole point: people with leg and foot ulcers almost universally are due to diabetes, normal age degeneration,obesity, smoking, alcohol, some other issue or combinations of the above. All up these groups represent large numbers and they are costly to look after.

The science is also very thorough with deep support through much research of how the skin's different components come into play.

Don't worry, this company will be supported. Speccy means by definition a lot of significant unknowns: the only unknowns here are the speed and the scale of the take-up.