Any opinions on the interims?3 Aug 2011 12:42
Hi WeavieStevie,
The Interims weren't going to set the world alight, the figures were poor, but put in the context of what is happening in the current market they did well to keep the sales level. Healthcare spending is on a very low ebb at the moment and especially in the capital equipment area, that is why the development of the Mobilewatch service is so important.
The Company has always continued to build the business with new products, markets and offerings. This costs money and cannot be done overnight, so while this is happening the figures will always be impacted.
However your last paragraph can be answered by some of the comment in the Interims and some research.
Mobilewatch and PSAwatch, quite simply they are the drivers for the future, not only will we start to see sales come through, we will see a lot less expenditure on their development. Mobilewatch should be cash and profit generative by the end of this year, PSAwatch will start to see sales come through and after the problems of last year they are now back in a position where commercial launch can start.
The Interims mention trials in France and Germany, I believe these are well on their way and we should start to see the results from these shortly. Germany may see the sales of PSAwatch from Alere, but France will be Mediwatch led. The trials there are centred in 6 different locations and are for the re-imbursement decision in France. I don't expect much during August because France stops for holidays, but if we get a positive decision on re-imbursement for PSAwatch in France that will be a major boost, France conduct twice as many PSA tests a year than the UK and as their medical system is private based, the PSAwatch test would be better suited as well. I also expect to see more exposure of PSAwatch and expect to see it feature in the media in the UK as they roll it out. The comment about charity screening sessions is interesting and further research can be done, in fact anyone could attend a session and see what they are now using for their PSA testing. I know there are a few around but try a search for the Graham Fulford Trust.
So the Company has got to a point where certain projects are now able to launch and stop consuming cash and start to generate it, it won't be overnight and sales will start off small, but in the case of Mobilewatch each new clinic rolled out and reaching full utilisation means more ongoing revenues. You might want to look at the re-inbursements for these sort of tests between $650-$950 a time and with MDW literature showing around $264 a test going to the physician, you can see the potential. A Mobilewatch clinic can schedule up to 8 tests a day, costs of consumables and the Urodynamic nurse are to come out of it, but at the moment the way they are being set up, the Clinic can be as successful as the work put into driving it, the more clients the more money the Nurse will receive.
They both are now going from cash consuming to cash generative.
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