Tuesday, December 10, 2019 3:48:02 PM
agreed seems to be gaining strength throughout the day
https://seekingalpha.com/article/4311420-alta-fox-opportunities-fund-koru-medical
Alta Fox Opportunities Fund - Koru Medical
Dec. 9, 2019 11:38 AM ET | About: Repro Med Systems, Inc. (KRMD)
Fund Letter Stock Ideas
Fund Letter Stock Ideas
(6,653 followers)
Summary
KRMD was the biggest winner in the portfolio in Q3.
The company currently has ~80% market share of the PIDD subcutaneous market.
I believe the company is undervalued.
The following segment was excerpted from this fund letter.
Koru Medical (NASDAQ:KRMD) recently changed its ticker and company name from Repro-Med (REPR).
KRMD was the biggest winner in the portfolio in Q3. It is a medical device company that has a razor/razorblade model that enables patients with primary immunodeficiency disease ("PIDD") to self-administer plasma-derived treatments through subcutaneous infusion. There are roughly 270,000 people with PIDD in the U.S., but only ~70,000 (36%) are currently being treated. The primary reason for this large gap is that PIDD is difficult to diagnose, but awareness has been increasing. As a result, while the population with the disease is growing ~2% per year, the percentage of patients treated is growing closer to 10% per year. However, the story gets better for KRMD. Of the 70,000 patients currently being treated for PIDD, nearly 2/3 of those patients are being treated through intravenous therapy typically with one large dose per month in either a hospital or specialty clinic. This is suboptimal in several ways: it is inconvenient for the customer who has to go to the clinic and then receive a large dose through an IV, it is a high dose of a drug administered all at once (many patients feel sick afterwards and the effectiveness of the drug drops off significantly after a few weeks), and finally, it is very expensive for the healthcare industry since a dedicated facility and nurse are required.
This is where KRMD's solution enters the picture. KRMD's subcutaneous infusion pump allows the patient to self-administer therapy at home, typically in smaller doses about once per week. The company currently has ~80% market share of the PIDD subcutaneous market - a market that is growing double digits and offers stable, recurring revenue. I know the drivers of this market fairly well given my previous work on PaySign, Inc. (NASDAQ:PAYS). KRMD is in a different part of the plasma supply chain than PAYS, but nonetheless benefits from double-digit secular growth in patient count. I believe the company is undervalued based on its current PIDD and CIPD indications due to 20%+ sustainable revenue growth, 70% gross margins, and significant operating leverage. Moreover, there is a chance that the current management team and board, which is impressive for a micro-cap, can create value by extending the use of its pumps for other emerging subcutaneous drugs. If I am right, the stock could have multiples of upside from current levels.
Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.
Recent KRMD News
- KORU Medical Systems to Participate in the 8th Annual Lake Street Best Ideas Growth Conference • Business Wire • 09/05/2024 11:00:00 AM
- KORU Medical Systems, Inc. Announces 2024 Q2 Financial Results, a Record Quarter With 22% Revenue Growth; Raises Full Year 2024 Guidance • Business Wire • 08/07/2024 08:05:00 PM
- KORU Medical Systems to Participate in the Canaccord Genuity 44th Annual Growth Conference • Business Wire • 07/25/2024 08:05:00 PM
- KORU Medical Systems, Inc Announces Leadership Changes to Support Growth Agenda • Business Wire • 07/24/2024 08:05:00 PM
- KORU Medical Systems to Report Second Quarter 2024 Financial Results on August 7, 2024 • Business Wire • 07/17/2024 08:05:00 PM
- KORU Medical Systems Receives Regulatory Clearance for FreedomEdge® Infusion System in Japan • Business Wire • 07/02/2024 11:00:00 AM
- Simplifying Subcutaneous Drug Administration: SCHOTT Pharma and KORU Medical Systems Announce Collaboration to Advance Large Volume Subcutaneous Infusion • Business Wire • 06/05/2024 01:00:00 PM
- KORU Medical Systems Announces a New Feasibility Study with a Commercialized Oncology Biologic • Business Wire • 06/04/2024 08:03:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 06/03/2024 09:19:50 PM
- Form SC 13G - Statement of acquisition of beneficial ownership by individuals • Edgar (US Regulatory) • 05/23/2024 11:00:28 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/14/2024 09:06:19 PM
- KORU Medical Systems Signs Supply Agreement for a Phase III Clinical Trial for a Novel Endocrinological Biologic • Business Wire • 05/14/2024 08:05:00 PM
- KORU Medical Systems, Inc. Announces 2024 First Quarter Financial Results Delivering Double-Digit Revenue Growth • Business Wire • 05/01/2024 08:05:00 PM
- KORU Medical Systems to Report First Quarter 2024 Financial Results on May 1, 2024 • Business Wire • 04/17/2024 11:00:00 AM
- KORU Medical Systems Announces Successful Appeal in EU Notified Body Review • Business Wire • 04/11/2024 08:05:00 PM
- KORU Medical Systems to Present Data Demonstrating 97% Adherence on Its Freedom Infusion System for Large Volume Subcutaneous Administration at NHIA 2024 Conference • Business Wire • 03/18/2024 09:24:00 PM
- KORU Medical Systems, Inc. Announces 2023 Fourth Quarter, Full Year Financial Results, and 2024 Guidance • Business Wire • 03/13/2024 08:05:00 PM
- KORU Medical Systems Announces a Feasibility Study to Enter Ambulatory Infusion Settings with a Commercialized Biologic • Business Wire • 03/11/2024 08:05:00 PM
- KORU Medical Systems Signs a Clinical Supply Agreement for Phase 3 Trial with Leading Pharma Partner Using Custom Device for a Novel Subcutaneous Immunoglobulin • Business Wire • 03/06/2024 12:00:00 PM
- KORU Medical Systems to Report Fourth Quarter and Full Year 2023 Financial Results on March 13, 2024 • Business Wire • 02/21/2024 12:00:00 PM
- KORU Medical Systems to Participate in Piper Sandler’s 35th Annual Healthcare Conference • Business Wire • 11/29/2023 12:00:00 PM
- KORU Medical Systems, Inc. to Host Investor Day on December 5, 2023 • Business Wire • 11/28/2023 01:00:00 PM
- KORU Medical Systems, Inc. Announces Development Agreement for Next-generation Subcutaneous Immunoglobulin Infusion System • Business Wire • 11/08/2023 09:10:00 PM
- KORU Medical Systems, Inc. Appoints Ken Miller as Chief Commercial Officer • Business Wire • 11/08/2023 09:08:00 PM
- KORU Medical Systems, Inc. Announces 2023 Third Quarter Financial Results and Updates Full Year 2023 Outlook • Business Wire • 11/08/2023 09:05:00 PM
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