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Novadaq Technologies Inc. Message Board

  • cynical_trader cynical_trader Apr 12, 2012 11:52 AM Flag

    Progress reports of ten emerging companies with disruptive technology

    With Tailwinds from Strong 2011 Revenues Novadaq Enters 2012 with Divestiture of Their Legacy Heart Laser Business, CMS Recognition of SPY Procedures, Nasdaq Listing And a Secondary Offering

     In February, NVDQ (formerly NDQ.TO) reported 4Q and FY 2011 earnings. Total revenues for 4Q2011 was $5MM—a 119% increase annually and a 19% increase sequentially

     NVDQ vastly exceeded their 4Q2011 guidance (75-100) for system sales with 130 new SPY or FIREFLY systems shipped out

     Entering 2012, 300 US hospitals are using NVDQ imaging systems

     Of the $5MM in 4Q2011 revenues, $2.4MM represented recurring revenues from repeat users of the SPY products. Recurring revenues has increased 67% percent annually

     Taken together, these data indicate that old customers are happy with the SPY/FIREFLY systems and continue to generate recurring revenues for the SPY procedural kits while new customers continue to be added on, requiring newly installed systems

     The company also indicated that its YE2011 cash and burn to be $9.6MM and $0.3MM, respectively

     Being fully focused on its imaging business, NVDQ was also able to divest out its legacy therapeutic (not imaging) product, CO2 Heart Laser, to a specialized cardiovascular hospital sales distributor called MAQUET Cardiovascular

    o NVDQ continues to consolidate their second partnership with LifeCell/KCI

    o The MAQUET deal extends the use of SPY in a newer, smaller, portable device (which is still 18-months to market) for the wound care market. Under the this agreement the KCI salesforce will call on:

     Wound clinics, burn wards, geriatric care centers, to implement the new SPY device to measure tissue perfusion and the extent of debridement in simple wounds aiding treatment decisions for individual patients, with the goal to shorten time to wound healing

     Hospital based vascular surgeons, to incorporate the use of the SPY Elite (with new software) when treating advanced wound care patients (e.g. diabetics ulceration) to measure the extent of perfusion of open wounds to guide amputation decisions

     Novadaq continued its positive news flow spree as the Centers for Medicare & Medicaid Services (CMS) announced that the SPY Vascular angiography had been granted a favorable outpatient reimbursement code, effective April 1, 2012

    o While the vast majority of SPY guided procedures are in-patient and surgical in nature, this recognition of SPY imaging as a standalone reimbursable procedure by the CMS bodes well for upcoming launches of the portable SPY system in wound care, the SPY Elite in vascular procedures and the PINPOINT device in minimally invasive surgeries— all of which are performed in out-patient settings

     On the heels of this positive earnings, divestiture, consolidation and reimbursement news, Novadaq was successful in securing a NASDAQ listing for itself. Novadaq shares began trading on the NASDAQ on Mar 1, under the ticker symbol "NVDQ.” This successful US listing underscores the growing popularity and investor base of this company in the US

     At press-time, NVDQ is tapping its "eager" US investor base for a secondary offering through Piper Jaffray and Stifel Nicolaus Weisel

    At the OneMedForum in San Francisco, in Jan 2012, CEO Dr. Arun Menawat indicated that in 2011 the revenue stream came from the use of SPY in breast, reconstructive and cardiovascular surgeries. In 2012, the mix is also going to include robotic surgeries (partnered with ISRG) and gastrointestinal surgeries (approved Oct 2011; partnered with LifeCell)

    52 wk: $5.75-$7.75
    Apr 10: $6.25
    Mkt Cap: $203.82MM

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