REPR thoughts as of 8/30/11....
(1) Freedom60 Sales (their main product) are continuing to explode led by an increasing recurring revenue stream as Hizentra and Vivaglobin patients tend to be patients for life who require REPR's tubing sets every month which run over $325 per year per patient for life. Hizentra sales continue to explode and the maker of Hizentra continues to promote REPR's Freedom60 device and tubing sets. 10Q forecasts further increases as a result of Hizentra drug approval last year and the Freedom60 now used for other drugs as well.
(2) On May 20, 2011 REPR received their long anticipated FDA approval for the marketing of their new needle set. It is expected that this approval will lead to a significant increase in sales and REPR is underdoing significant manufacturing expansion in anticipation of this.
(3) I estimate that conservatively around 14,000 devices are on operation with a recurring revenue stream of now of $1,136,100 per Q. The recurring revenue stream now going forward is very high and that alone should continue to make REPR very profitable and growing with growing device sales being icing on the cake.
(3) REPR's Freedom60 device is the only one of its kind approved by Medicare.
(4) Rock solid balance sheet with a large and growing cash position, very little debt, and zero need for dilution.
(5) REPR is hiring like crazy.
(6) From the latest 10Q:
INVESTMENT TO INTRODUCE AND ROLL-OUT NEW PRODUCT
We are expanding our management and assembly staff to meet the anticipated demand for our High-Flo™ RMS Subcutaneous Needle Set. We anticipate increased expenditures for items associated with anticipated growth, such as added personnel and expanding hours of production, obtaining added tooling and equipment, obtaining additional supplies of raw material and parts, obtaining supplemental sources of supply, and expanding advertising and marketing efforts.
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We have taken initial steps to increase our in-house capacity to manufacture and build inventory of the new needle sets. We believe we have sufficient resources to expand domestic marketing of the needle sets. We are negotiating with a third party manufacturer to arrange for outside production for additional capacity and to establish an alternative source of supply for our customers.
AI
