Thank you Flam. I do not have the exact market share of the LifeNet Health products except I looked into this about 6 months ago for a possible acquisition on the part of Novadaq of a small private company in the same area. Because of the private nature of the company and other products that they manufactured, it turned out to be not likely. However during the investigation I realize the importance of the product in providing a platform for cell / skin formation in surgeries where large wound areas existed. Of all the competing products the LifeNet products were the best and dominated the market. As I said, I didn't know the extent of the dominance (thanks again Flam) but they were the "gold standard". With the combination of blood profusion efficacy measurement provided by SPY combined with the cell mesh from LifeNet, you get synergies that will only enhance the 70-80% market share from the higher clinical performance and cost savings. If Novadaq can have their sales persons in 80%Plus of the market in an accelerated time frame...the dots are on the page.
I believe the institutions have smart enough people to connect these same dots and yesterday they returned to the table in a big way. I expect the institutions that did not participate yesterday will have to come back to acquire shares in the days to come. Combine this with the recent increase of 3.2 to 3.5 million shorted shares (Nov 15th) and institutions currently have 85% plus of the existing shares leave only about 6 million available for the shorted shares to bid on (assuming the institutions are in the acquiring mode). The squeeze is definitely on. If we have another up day today the shorters will begin to face margin calls and will be forced to either buy in the open market or put up cash.
To quote a successful Senatorial candidate from Iowa..."Make them squeal til it hurts..."
I have bin following your blogs endo and von. Thanks for your contributions.
Spoke to Breast reconstruction surgeon. Lifecell is the leader in this market with 70-80% share. So not only did we take SPY from Lifecell but we are now directly competing with them. My take is that NVDQ sales team has old Lifecell sales people and they are probably confident that they can compete with the life net health product line. This is exciting in MHO.
Sentiment: Strong Buy
I too would appreciate knowing more about the implications of this agreement with LifeNet Health. Can't seem to find a detailed listing of hospitals employing the company's products.
I love the conclusions you reach about marketing presence and price targets, but have to admit that I am having a problem connecting the dots of your posting. Any chance, when you have a free moment or two, to give it to me in a more expanded fashion.
He is looking at a different stock probably. He obviously either doesn't mean Novadaq or he knows nothing about Novadaq.
I was scratching my head about the pop in the shares today...what caused it?
We small fry on this board may never know but I suspect it's ALL of the above...all meaning the steady flow of announcements throughout the year---Lifecell, Taiwan, Japan, India, Australia, Indonesia,Pacific islands, Serena, patents, all the great news at the Investor Day conference which I attended in person, the new PInpoint with its improved images being introduced next month..etc. Today's news may have reflected the tipping point for the bulls...did I mention the shorts starting to capitulate?
The exclusive contract to market these new products means Novadaq salesmen will have access to every hospital that performs reconstructive surgery or wound care and will be able to speak to the hospital decision makers about the combination of the Novadaq technology-best in class wound mesh technology that will have synergies that will more than pay for themselves---they will become the Gold Standard in a very, very short time and NVDQ will accelerate their marketing presence, up from 40% per year to 60%, 80%, triple digit? for the next 3-5 years. This is big...bigger than getting the LifeCell to give up their division for $5 million, bigger than the Wound care agreement.
Price targets will be increased to $30+ within a week of the Q4 conference call.
Share price didn't do much at all yesterday (Tues) following the patent announcement (Monday night), although they did go out of their way to announce it, you're right about that.
Today would seem to be a direct reaction to the LifeNet deal, announced last night. Although perhaps the One-Two punch of the back to back announcements amplified things?
Agree its a scam..don't think we will see dilution yet though.. they still have a lot of cash. That said this business is worth $5 per share.
Sentiment: Strong Sell
Are the new products worth $150 million in market cap in their own right with the strategic ability to sell a complete diagnostic and treatment solution thereby entrenching NVDQ in the distribution channel worth another $150 million at least? That would be $5 per share.
Very nice day indeed. I wonder if this strong showing is the result of the LifeNet deal or is the result of the new patent announcement? The company must have felt very strongly about the importance of this patent because they rarely do a press release on patent approvals.
I'll need to do some due diligence on these LifeNet products, but it sure sounds like a good fit. And it appears that Mr. Market approves: up 8.8% at the moment... Nice!
Novadaq Chosen Exclusive Distributor of DermACELL Tissue Products
BY Midnight Trader
— 6:59 AM ET 12/10/2014
06:59 AM EST, 12/10/2014 (MT Newswires) -- Novadaq (NVDQ ) was chosen as the exclusive worldwide distributor of DermACELL tissue products for wound and breast reconstruction surgery. The deal has an initial 10-year term but can be renewed for successive five-year periods, depending on certain conditions.
DermACELL, created by transplant solutions provider LifeNet Health, is a allograft bio-implant used in breast reconstruction surgeries, as well as in the treatment of diabetic foot ulcers and chronic non-healing wounds.