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Biotricity Inc. (BTCY)

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Last Post: 3/22/2022 6:28:46 PM - Followers: 16 - Board type: Free - Posts Today: 0

Biotricity (OTCQB:BTCY) is a company most of you have never heard of, but is poised to disrupt a segment of the cardiac medical device space. Though small, it already has nearly two years of eye-popping sequential and annual growth rates. But that's just the beginning. The company has publicly guidedfor 25-40% sequential growth and continued triple digit annual growth for the next couple years, at least.

As if that growth is not impressive enough, the guidance only includes the expansion of their initial commercialized product, Bioflux, a mobile cardiac telemetry (MCT) device. Yet, in January of this year the company submitted a 510(K) FDA filing for another cardiac device, Biotres, a holter/extended holter device. This device will have a higher total addressable market (TAM) than Bioflux, and the CEO noted on the last conference call that Biotres should quickly add 20-30% more to the top line.  
 

BTCY's TaaS Model Will Help Them Disrupt

As mentioned, BTCY is currently focused on the cardiac market, most especially the MCT market, which is used primarily now for high-risk cardiac patients. The MCT devices and technology monitor high-risk patients in real time so that if a patient has an adverse cardiac event, such as arrythmia, the physician and patient are immediately alerted to address the problem at that time. Using a holter device, which is usually used on low to medium-risk patients, the adverse event would not be detected until the patient's next physician visit. If the patient had an adverse event while wearing the holter, the physician would not know this in real time, and the patient may have severe damage, or death, from the event not being timely-treated.

Despite the differences between an MCT and holter device and technology, the use and payment process for these devices follows the same pattern. Namely: (1) the doctor prescribes the patient to wear the device for a given period of time, e.g., seven days; (2) the patient wears the monitor for that time; (3) the doctor is paid a nominal fee for reading the device's report; (4) the medical device/clinical company is paid around $800 per use of its device; (5) if insurance does not cover all $800, the device company will likely bill the patient for the remaining balance. So, in this standard model, the doctor is paid a nominal reading fee and the patient may be billed for an amount not paid by their insurance.

BTCY's model is different. In this model, both the physician and the patient benefit. Here's BTCY's model: (1) the doctor purchases the device from BTCY; (2) the doctor prescribes the patient to wear the BTCY device for a given period of time; (3) the patient wears the monitor; (4) the doctor is not only paid the nominal reading fee, but also can bill the $800 per use of the device; (5) the doctor often chooses not to bill any difference between the $800 and the amount paid by insurance because they have a long-term relationship with the patient; (6) the doctor pays BTCY a technology fee for use of their technology in the device.

As you can see, in BTCY's model, the doctor benefits by being paid significantly more money; the patient wins by possibly being billed less, but certainly not being billed anymore; and BTCY wins not primarily through the device sale, but through the reliable, recurring, and high margin revenue from the technology fee. While BTCY sells the device once, the technology fee will repeat several dozen times per year for that one device. Notice the only ones who lose in this model: the device/clinical companies who currently cut out the physician from any meaningful payment in this process. For cardiologists and electrophysiologists who regularly prescribe MCT devices, using BTCY's product and technology (which is the most up-to-date) and billing model (which allows them to make significantly more money) seems like a no brainer. In fact, when I contacted a close friend of mine who himself is an electrophysiologist, he immediately asked me to put him in touch with the company (he lives in one of the 30 states where BTCY currently does not have a salesforce presence). Perhaps this is why BTCY is seeing eye-popping growth rates with its Bioflux device and subsequent technology fees.
 

Future Products & Technology

While BTCY has plans to expand well beyond the adult cardiac monitoring market, I will focus on more near-term catalysts and expansion. I have already mentioned the Biotres product and technology that management indicated would quickly add 20-30% revenue increases. In addition to those, there are two other exciting developments underway.

First, is BTCY's Bioheart, a direct-to-consumer (DTC) product expected to be launched in June 2021. According to people familiar with the company, BTCY is still doing a full market assessment to see how best to market this product. In any case, Bioheart is essentially Bioflux for non-medical-professional use. I believe Bioheart could have significant appeal to people generally concerned about heart health due to family history, etc., as well as to athletes and "gym rats" who want to monitor their heart (full disclosure: I am personally quite interested in Bioheart for both of these reasons).

Second, according to its presentation from the LD Micro conference in December, the company is working on an app for cardiologists and patients to use to better monitor the patient's heart health between doctor visits. Beyond that tease, the company has not spoken publicly about the app, but they did show on that presentation that the TAM is approximately 10 times as large as the combined TAM for Bioflux and Biotres.

BTCY'S STRENGTHS 

1) Gross margins: current gross margins are just a tick under 50%. While that is good, it is nothing compared to where gross margins should eventually land. The company has mentioned that margins will expand as one-time device sales become a smaller portion of revenue, giving way to the higher margin TaaS fees. Based on my own research, I would expect gross margins to easily hit the high 50% to low 60% range by the end of fiscal 2022. Long term, the company will likely eventually settle with at least mid-60% range gross margins.

(2) Churn: So far, BTCY has nearly a 100% customer retention rate. This bodes well for the company because it speaks not only to their effectiveness and good relationships with customers, but also to their visibility into future revenue run rates.

(3) The Board of Directors and management team are experienced. In addition to strong corporate and medical device commercialization experience, the team has members familiar with raising capital for new companies and taking them public. Although BTCY is obviously already public, this experience could help with this final strength I wish to mention.

(4) Uplisting to a Major Exchange: BTCY is working to be listed on a major exchange sometime in calendar year 2021. Based on my review, I believe the only necessary hurdle to being uplisted is the share price. From what I will show in the "Valuation" section, I believe that issue will take care of itself as BTCY continues to execute. But beyond that, being listed on a major exchange will provide a tailwind with analyst coverage being more likely, and additional institutional interest given that some institutions have restrictions from purchasing OTC stocks.

1) Gross margins: current gross margins are just a tick under 50%. While that is good, it is nothing compared to where gross margins should eventually land. The company has mentioned that margins will expand as one-time device sales become a smaller portion of revenue, giving way to the higher margin TaaS fees. Based on my own research, I would expect gross margins to easily hit the high 50% to low 60% range by the end of fiscal 2022. Long term, the company will likely eventually settle with at least mid-60% range gross margins.

(2) Churn: So far, BTCY has nearly a 100% customer retention rate. This bodes well for the company because it speaks not only to their effectiveness and good relationships with customers, but also to their visibility into future revenue run rates.

(3) The Board of Directors and management team are experienced. In addition to strong corporate and medical device commercialization experience, the team has members familiar with raising capital for new companies and taking them public. Although BTCY is obviously already public, this experience could help with this final strength I wish to mention.

(4) Uplisting to a Major Exchange: BTCY is working to be listed on a major exchange sometime in calendar year 2021. Based on my review, I believe the only necessary hurdle to being uplisted is the share price. From what I will show in the "Valuation" section, I believe that issue will take care of itself as BTCY continues to execute. But beyond that, being listed on a major exchange will provide a tailwind with analyst coverage being more likely, and additional institutional interest given that some institutions have restrictions from purchasing OTC stocks.

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BTCY News: Current Report Filing (8-k) 05/06/2022 01:19:19 PM
BTCY News: Prospectus Filed Pursuant to Rule 424(b)(5) (424b5) 04/27/2022 12:37:39 PM
BTCY News: Notice of Effectiveness (effect) 04/26/2022 02:16:18 AM
BTCY News: Securities Registration Statement (simplified Form) (s-3/a) 04/14/2022 01:16:03 PM
BTCY News: Securities Registration Statement (simplified Form) (s-3/a) 04/08/2022 01:31:59 PM
PostSubject
#416   Item 1.01 Entry into a Material Definitive Agreement. cheynew 03/22/22 06:28:46 PM
#415   BIOTRICITY TO LAUNCH COMMERCIAL SALES OF ITS DISRUPTIVE cheynew 03/22/22 10:44:10 AM
#414   got some bargain BTCY shares today oldstocks 03/14/22 06:25:43 PM
#413   Twice this stock has ripped through an over HeilHiden 01/25/22 12:50:34 PM
#412   Downtrend and no momentum. What a boring day! HeilHiden 01/25/22 12:48:20 PM
#411   Small bids being placed. Someone is trying to HeilHiden 01/25/22 09:22:15 AM
#410   All depends on where the sellers are at! HeilHiden 01/25/22 09:19:11 AM
#409   Will 2.80 hold or are we going to HeilHiden 01/25/22 09:15:35 AM
#408   Made some money how bout y’all!! See you tomorrow! HeilHiden 01/24/22 04:34:40 PM
#407   Buy the dip HeilHiden 01/24/22 03:28:37 PM
#406   A big buy will take this up like crazyyy. HeilHiden 01/24/22 02:35:45 PM
#405   Is today’s bottom going to hold? HeilHiden 01/24/22 02:20:24 PM
#404   Biotricity Receives FDA 510(k) Clearance for its Biotres oldstocks 01/24/22 09:44:20 AM
#403   BIOTRICITY COMPLETES $12 MILLION NON-DILUTIVE DEBT FINANCING cheynew 12/27/21 09:37:51 AM
#402   Been adding shares for past 18 months. gwsteller 12/14/21 11:47:05 AM
#401   Why the silence here? Theyahoo 12/14/21 10:33:47 AM
#400   Biotricity Delivers Bioheart, A Groundbreaking Consumer Heart Monitor cheynew 11/10/21 12:49:13 PM
#399   $4.40 bid :-) wesley_ 10/26/21 02:39:01 PM
#398   Long and strong....I hope you are right. gwsteller 10/25/21 12:29:27 PM
#397   Well then, here’s to hoping for continued growth! Bullz 10/23/21 05:30:07 PM
#396   For all wondering what’s up, here it is Bcl40004$ 10/23/21 04:56:41 PM
#395   Looks like there have been paid promotions recently. cheynew 10/23/21 08:36:27 AM
#394   Trademark app cheynew 10/23/21 08:30:49 AM
#393   Beauty close TrendTrade2016 10/22/21 04:40:26 PM
#392   BTCY low floater break out TrendTrade2016 10/22/21 11:02:06 AM
#391   $4.10 not bad for a friday wesley_ 10/22/21 10:59:59 AM
#390   What is causing the bounce and volume? cheynew 10/21/21 10:23:01 AM
#389   $3.60 nice wesley_ 10/21/21 09:50:46 AM
#388   $BTCY: This bad boy is a buy here makinezmoney 10/07/21 01:28:56 PM
#387   Benzinga BTCY presentation: AgInAustin 10/04/21 02:10:27 PM
#386   The business model and structure of this company gwsteller 09/15/21 01:50:32 PM
#385   7:47a ET 9/15/2021 - Benzinga cheynew 09/15/21 12:35:05 PM
#384   REDWOOD CITY, CA / ACCESSWIRE / September 8, Bcl40004$ 09/08/21 08:44:50 AM
#383   BTCY moved to the Nasdaq from the OTC: Renee 08/26/21 09:19:54 AM
#382   I agree . More buys than sales today Bcl40004$ 06/16/21 11:30:02 AM
#381   Let’s close the gap at $3.25 and move stoneroad 06/16/21 10:54:44 AM
#380   Earnings is out, check out the release. Bcl40004$ 06/15/21 09:46:56 PM
#379   Looking good. Waiting for that up list to Bullz 06/09/21 12:13:48 PM
#378   $3.25 close yesterday on strong volume. Must be bigpinekey-guy 06/09/21 12:07:41 PM
#377   Great writeup on BTCY on Seeking Alpha: thoughtful, bigpinekey-guy 05/17/21 01:49:53 PM
#376   Further confirmation of the growth BTCY has experienced, bigpinekey-guy 04/14/21 04:18:33 PM
#375   Further confirmation of the growth BTCY has experienced, bigpinekey-guy 04/14/21 04:18:24 PM
#374   Further confirmation of the growth BTCY has experienced, bigpinekey-guy 04/14/21 04:18:12 PM
#373   AUSTIN, Texas, March 16, 2021 (GLOBE NEWSWIRE) -- Bcl40004$ 03/25/21 09:39:45 PM
#372   Biocare Telemed is a virtual clinic platform with Bcl40004$ 03/14/21 07:30:34 PM
#371   FDA should push price past 4.50 Bcl40004$ 03/14/21 06:55:21 PM
#370   Under valued stock , just starting to get noticed Bcl40004$ 03/14/21 06:54:50 PM
#369   Uplisting on the way Bcl40004$ 03/14/21 06:53:56 PM
#368   FDA approval on the way Bcl40004$ 03/14/21 06:51:55 PM
#367   ELLIOTT WAVE counts starkd748 03/03/21 05:46:07 PM
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