Medizone Intl. (fka MZEIQ)

[Whatisvalue]

GreenOwner, you wrote, "I do not think use of A-S will be indicated with every patient admission to a hospital or clinic. I would venture to say that there will be weekly rounds of the AS system for rooms, wards, suites, etc.I do not think use of A-S will be indicated with every patient admission to a hospital or clinic. I would venture to say that there will be weekly rounds of the AS system for rooms, wards, suites, etc."

You could be right, but you might want to consider the average length of a hospital stay in the US is 4.8 days. http://www.cdc.gov/nchs/fastats/hospital.htm

The margin of error of an A-sure application for each admission versus once a week is more than offset by knowing that the average hospital is utilized only 65% of the time. Unless whole wards are closed, cleaning 100% of a facility that is only 65% utilized will be more expensive than the once per admission application.
http://www.facs.org/surgerynews/2011/scheduling0211.html

The model error in the utilization variable can easily be compensated for increases or decreases in other variables with a higher degree of economic sensitivity. For example, changing the margin on the canister from $7 to $10 obviates the difference in the once a week vs. each admission application standard.

I appreciate that you and others are trying to focus on value determination for MZEI. As I said in the previous post, MZEI needs to begin to offer relevant information from which analysts can begin to formulate a valuation, as well as commission its own reputable research/valuation modeling and communicate this information to the investment gatekeepers. I have no delusion that even when the market is defined, that MZEI has the capacity to reach it at any significant depth. Both from the standpoint of accelerating A-sure adoption to preserve life and health and to maximize shareholder value, MZEI's business plan should be focused on 'proving the market' and then selling or partnering with a substantial firm capable of a high level of execution. The company has effectively stated that this is its general goal.

Assuming EPA / FDA determinations are favorable, the investing community will need some decent data to project a value for MZEI. I presume the ongoing testing at Bellville General Hospital has progressed well past determinations of efficacy and is assessing a matrix of A-sure applications versus HAI reduction rates. Such data will put to rest any meaningful argument over the spectrum of utilization rates -- I'd anticipate that the tests will show varied utilization rates for varied areas of the hospital.

I anticipate that Sani-marc is utilizing a "demonstration" marketing model -- we'll prove we can clean your facility, then you contract with us for the long-term. I see this type of sale being necessitated due to the lack of MZEI developed 'economic' test data from which facilities can conclude a purchase decision. In time, SMWW will develop a sufficient amount of its own data to reduce or eliminate the "demonstration" sale. Because SMWW also represents the majority of competitors' products, they can develop a high level of customer acceptance data. All of this suggests to me a moderate rate of sales growth in 2013 with acceleration in 2014. Hopefully, the SMWW data can be shared with potential US distributors so their learning curve will be shorter. GLTA