Posted by Respected WBeacham, this is a good summary that everyone should read and think about it.
" Synergy is the word-of-the-day meaning "the interaction of two or more agents or forces so that their combined effect is greater than the sum of their individual effects". In a phrase, that sums up the call this morning. And the number-of-the-day is 975,000; as in Synergy, the company, is contractually obligated to purchase that number of RecoveryRx units over the next 18 mths., starting in Q4/2022. I don't know for sure what the profit/unit is so I'll set it at $10 per unit altho it could be higher, adjust #'s accdgly. That works out to $9.75 million over 6 quarters which averages out to $1.6 million per qtr.; +/-.
Gee, I wonder what Keith (VP/Sales) has been up to over the last 18 months? Oh, that's right, he's been putting together Biel's biggest deal to date. Other than that, not much of anything really, sipping Pina Coladas, you know, the usual.
Synergy, the word, sums up the remainder of the call. Lots of irons in the fire. KN seemed confident and poised and Kelly was on the chat board answering questions KN didn't have time to address directly. A good strategy I didn't expect. Dr. Staelin was also there contributing. Good coordination and well thought out. That alone demonstrates how important this exercise was.
They did the right thing by releasing the biggie immediately. Only Biel's largest deal to date, that's all. The other thing that got my attention was the re-design of the RRx to an oblong shape to accommodate most surgical incisions. Obvious really, but it does show we are in consultation (and communication) w/ actual surgeons on real-time issues in the operating theater. So, between this and the RRx Synergy deal, we are definitely focussed on RRx and the media campaign has been, and will continue to be, highly effective. So much for the whining about Biel not doing any advertising.
Other areas dealt with are the VA, pet market, Overactive Bladder syndrome. They seemed very positive on the VA moving forward w/ the RRx for Phantom Limb pain. There is nothing on the market for that particular condition. The same is true for Overactive Bladder. KN emphasized clearly that there is nothing on the market as an intervention. Same w/ the pet market. Open field w/ no competitors in sight.
Two things not addressed directly. They, KN & Kelly, strategically manuevered around the the insurance reimbursement issue and Viant (another manufacturer). I didn't pick up exactly what was said but Kelly did say in the comments about it being 30-50k to hire consultants, so ... I dunno. Kelly did mention Dr. Koneru is a consultant which we already knew. 975,000 units seems like a lot to make w/o outside help. I think Viant is very much in our future but no indication from the call. I would bet lunch money insurance is being vigorously worked on. Too important to put on back burner. Saying so little in ref: to both really intrigued me.
General feeling is they are doing just fine, a Synergy of several moving parts is happening, thank you very much. The business is progressing and expanding. Wouldn't be the least bit surprised to see a pr sometime soon. YMIGH.
"Sic parvis magma" - Greatness from small beginnings
definitely BUY_MORE_SHARES
later, WBeacham
BIEL $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
