Novadaq (NVDQ)

[biocqr]

Continued from GNMK board...

Thursday, October 25, 2012 3:48:11 PM
Re: CynicalTrader post# 51

Post # of 53
Hi Cynicaltrader, funny enough I have done some research on NVDQ and do like the company. However, I think they have some risks in developing their own sales force, it's a tough job. The reliance on partners will help short term with penetration, but I worry about their ability to up sell pinpoint longer term. What Genmark is doing in organically developing their sales force has proven super successful time and again in the medical device market which is 100% relationship based. Another concern is the NVDQ margins getting affected by the partnerships, the revenues don't flow down to the bottom line. I also give the Genmark management a AA+ and feel the NVDQ management is pretty good based on execution to date, but do not have the proven past track record. BTW, love the DD you've done and linked to the board.

BB

BB - I have the same reservations re Pinpoint but they are already in > 400 hospitals through their partners. They should be able to tag team with the ISRG and Lifecell reps to make contact with decision-makers. It shouldn't be that difficult to get the attention of hospital admin with Firefly outcomes documented and hospital docs providing testimonials. PILLAR data should be ready by April 2013... that should provide the cost/payback timeline and give the reps some ammo.

From NVDQ's JMP conference presentation...

"In colorectal procedures early data shows reduction of necrosis from 15-25% down to 3-4% "

Not sure what percentage of readmissions are due to necrosis but colorectal seems to have a higher readmission rate than most....

HOSPITAL READMISSIONS AFTER COLON SURGERY COMMON, COSTLY - AND PREVENTABLE

Release Date: 11/16/2011
Johns Hopkins researchers find nearly one in four patients readmitted within 90 days at a cost of $300 million a year

http://www.hopkinsmedicine.org/news/media/releases/hospital_readmissions_after_colon_surgery_common_costly___and_preventable