No partnerships, no revenue sharing... 100% revenue to NVDQ.
$100K per system, $3500 per kit/procedure.
Colorectal, obgyn, utology, pulmonary, bariatric surgeries.
200K annual potential procedures = $700M market opportunity for kits alone.
I believe they would sell the kit at $1,000 per procedure as in itself. Novadaq would receive revenues at a $1,000 per procedure, not $3,500 or $4,500 to answer your question.
What I have seen from analysts is that 200k-300k procedures are the potential for the Pinpoint system.
Remember, take my opinion with a grain of salt, I am just guessing.....
Don't mean to put you on the spot but is your read on this that their per procedure revenue is $3,600 + the price of the kit ($1,000)? Or that the $1,000 is part of the $3,600?
I'm much interested in your take on PinPoint but once again your posts aren't coming through on my screen. I see 13 posts listed on PinPoint but can read only 11, latest 4/14.
Perhaps you could start a new topic. Or maybe you could sneak a post over on Investor Village, perhaps we all should move there.
I wasn't suggesting that there was not a per procedure charge. Only that $3,600 clearly includes much more than the dye kit. Did the prospectus give any hint what the $3,600 entailed? Is it some combination of hardware amortization, disposable hardware component and/or per procedure dye kit.
If by 'like ISRG' you mean 'per procedure' then that makes sense but as far as I know they do not currently have the capability to programmatically enforce a limitation on the number of procedures.
Excuse me... PINPOINT = $1.75B opportunity
500K procedures X $3500 = $1.75 billion according to this interview with Dr. Menawat...
With four partnerships already in its pocket, Novadaq’s next step is commercializing its PINPOINT endoscope system, which combines high-definition visible light imaging plus SPY fluorescence in a single system for minimally invasive surgery. The device, which is FDA-approved, is currently being evaluated in post-marketing studies at four hospitals for a number of clinical applications, including colorectal surgery.
PINPOINT may assist physicians performing colonoscopy by more effectively: Identifying polypoid and non-polypoid lesions in the colon; delineating cancerous margins; and confirming the presence/absence of synchronous lesions
Clinical data are expected this summer, and Novadaq hopes to launch PINPOINT with its own sales team in the third quarter of this year, initially targeting minimally invasive GI surgery. The company figures there are about 500,000 endoscopic procedures done annually that could use the PINPOINT product.
“Because PINPOINT will be a combination of capital sales and recurring revenue, we’ll probably start with a sales team of five to 10 and grow the team in regional terms as revenue grows,” Dr. Menawat says, pointing out that 50 to 100 sales reps will probably represent the ultimate size of the team.
Novadaq also hopes to parlay its own sales team off its four partnerships.
“That’s the beauty of our strategy,” he contends. “We’ll know which hospitals already will have SPY technology when we launch PINPOINT. So, when we speak to minimally invasive surgeons, we’ll be able to advance our arguments about PINIPOINT in the context that the hospital administration and other surgeons already are aware of the benefits of SPY. At a time when it’s difficult to get new technology into a hospital, that synergy will be huge.”
Thank you for being the first to my knowledge to cite the full text of the 12/20/11 JMP report on this board. We'd seen the $3,500 ASP for PinPoint and the $7 share price target but not the full report.
You mention an interview with Dr. Menawat and quote him. Was this from a CC or ?
Again, thank you.