Given the fervor for 'all things American' and the fact that Kainos has a big footprint and significant revenue stream in the USA I'm surprised this hasn't soared already. Similar businesses over the water command a far higher p/e than here despite the constant comment that it's on the high side (for here!). Next week's update should reassure and set it firmly back on the ascent.
Entry into ICU market expands revenue potential.
The size and scope of Ondines Steriwave continues to grow given its undeniable reduction in environment acquired infections and their huge cost to Healthcare globally. It really is the gold standard as roll out continues to attract new users and surgeon chat confirms statistics.
I think the approval of Steriwave, after recent trials, into the NHS has now primed Ondine for takeover by a big provider with the size to scale it. Ondine has 7 applications for Steriwave in its sights and pending Ph3 approval into the USA market.
Hospital acquired infections cost the NHS a fortune.
SSIs are one of the most common healthcare-associated infections (HAIs) and affect one in every 20 patients who undergo a surgical procedure in the NHS. SSIs can cost up to £100,000 per patient, and the overall cost of HAIs to NHS England is over £2 billion a year.
There's a fine line between dismissing a share at this level and FOMO as appraisal and adoption snowballs. It really screams the perfect juncture for a player like J&J to take this on and scale it exponentially. The proof of effectiveness is out there and rapidly gaining surgeon comment.
Carol Cross CEO has take this from concept, thorough R&D and proving, trialled and accepted by surgeons and now on the cusp of large commercial rollout. At 62yrs of age and with her background and stature I am sure that she sees the best exit strategy is to sell to a big player who can scale up. The huge degree of success in reducing the need for antibiotics in post operative hospital care is evident and becoming globally 'viral' as surgeons and care teams communicate the savings. Steriwave is simple, quick, non-invasive and safe as it does not compromise the nasal biome weeks after the operation. A 75% reduction in the use of antibiotics to treat post op hospital acquired infections seems to be universal when Steriwave is used. That saves hospitals millions of pounds and thousands of days post op intervention and bed-blocking. It's a total no-brainer and just needs a major [probably US] Healthcare company to make her an offer and immediately scale it globally. As she holds 50% or so of the shares it would be a done deal. I mentioned 20p but I personally see it worth a lot more. Hopefully Carol Cross thinks likewise. I really cannot see any other direction than north from here.
Given the raft of positive news now coming out from surgeons in all quarters of the profession, oropharyngeal, orthopaedics etc I have written to the company to request that they give possible financial projections of uptake. The recent NHS news must have huge potential and it would be great to see some meat on the bones.
Carolyn Cross is 62, has steered Steriwave from concept, through R&D to commercialisation. It's now on the cusp of exponential adoption looking at success rates. Now is the time to put her exit strategy in play as she holds just under 50% of the shares in Ondine. Time to put it into play and watch the multiples scale it. The fact that a phase 3 trial in the USA is happening probably dictates where that bid will come from given the massive stateside potential. Just a matter of time and patience whilst this frustratingly low shareprice plays out.
Company now needs a major player to scale this breakthrough tech. The likes of Halma,Stryker,S&N could all quickly scale Steriwave now its gaining universal recognition and increased adoption. Consultants lead change and Steriwave is changing HAI post surgery. No brainer.
"Surgical site infections are devastating. If you look at a surgical site infection in a total joint replacement, it’s a months-long recovery process,” says Dr. Andrew Glennie, a QEII orthopaedic surgeon and clinical champion for the Steriwave “test-and-try" in Canada.
Steriwave is currently trialing in NHS.
From X.....
Ondine Biomedical
@OndineBio
·
Mar 18
"It is a no-brainer for us and the nurses are very excited to be involved.”
Read about how the team at the #QEII Health Sciences Centre is using Ondine’s Steriwave technology. Special thanks to the
@QEIIFoundation
for funding this year-long study.
I don't think that the true relevance of this contract has been evaluated by the investment community....yet.
NHS policy is used as a guide globally since it's decisions have major effects of its overall budget. This adoption of Steriwave after evaluation of a 6 month pilot was after a stringent cost/benefit analysis by one of its senior assessment authorities. The big point is that it's being used in orthopaedic pre-op which is a field change from the recent 77% reduction in HAI's in London oropharyngeal surgery.
This is a pivotal RNS and exactly what I suspected in my last post. This really does open the door for Steriwave adoption across the NHS. YHEC is one of the prime influences within the NHS and acts as a first mover in many cases of national rollout. Excellent news that their pilot and subsequent appraisal has led to adoption. The cost savings if universally adopted across the NHS would be 'substantial' according to Ondine.
As far as I can make out YHEC is undertaking an economic analysis based on results from primarily the Pontefract trial. I would expect conclusions from that are due any time. Since YHEC is an influencer for NHS policy it will look at savings that adoption of Steriwave could achieve. This could be quite a pivotal time for Ondine. Positive studies across the globe are accumulating.