OK genius. Try this. A hip replacement sells in the US for about $5000
You can buy the same hip replacement in Germany for $1250
That's as real as the next breath you will take and China is worse still.
Same is true of spinal. I suggest you sell everything you own and buy more of this wonder stock. You just be rolling in profit already?
I guess you can't read or you can't comprehend. Either is kinda serious.
A spinal cage in China will sell for $1000 max. AMDA will see $500 max.
AMDA will NOT get any of the rest of the procedure revenue as Weigao will sell their own metalwork.
1) Check out the website of your new Chinese ally and ask yourself honestly - how credible do they look?
2) You are quoting US price (wrongly). No lumbar interbody CAGE sells for $8-11k In China - a cage will sell for $1k and AMDA will be lucky to see half of that.
Why would any of them bother when they can buy PEEK for a few dollars, make cages for $200 and use their massive selling advantage to drown out little AMDA forever.
That said, the same logic applied to SYK and then they bought MAKO for an illogical $1.7 billion and really have stolen a march on all of their competitors.
Even the same multiple of sales that SYK paid for MAKO would not get this back to the IPO price, so don't go ordering those Porsches.
The one thing this old junker DOESN'T have to worry about is capacity.
Kyocera (their manufacturing partner) could ramp up to 20,000 in no time.
However, there's no way AMDA would get $1k an implant from a distributor that has to make a margin in China.
Everyone can do DMLS cages in Titanium. It's an inferior material to SiNi but that counts for nothing if there are 25 reps selling Ti for every one selling SiNi (with - as Sonny never tires of telling you - INFERIOR METALwork around his wonder cage).
You are obviously too dim too realize that there was a 15:1 reverse split this year.
That means you need $127.50 to get back to IPO day!
You will never see a tenth of that in the next 3 years.
One company has an even higher rate of failure in the FDA MAUDE database than DePuy.
I'm not sure there has ever been a company selling knee implants that has had a higher % rate of failures reported to MAUDE than our friends at ConforMIS?
......you can't lose as much money on this from now until the end of time as you have since March 7th!
Other than that - there really is nothing to like here.
Because it's been diluted to death with a gazillion warrants?
$50 with the current share count would = $500 million market cap.
Let's allow it a crazy P/E of 50? That would need $10 million in profit. That isn't going to happen this side of 2020 and only then with FDA clearance of femoral heads.
I thin there is a 50% chance that they will snare one of the big 4 with an OEM deal on a composite device.
I think there is a 25% chance they will be acquired by one of the big 4 after approval of a composite device.
I think there is a 60% chance they will see approval of a composite device.
Significant market share would be 5%
They have given up on trying to sell cages to the market for $1500 and accepted they have to supply OEM for $500
Infection is a 2% problem in spinal fusion and you have to realize that much of that has little to do with the cage (there is a lot more metal than cage in the construct, so taking PEEK out of the equation would not solve much of the problem).
Just don't bet any money you can't afford to lose here. You are as likely to lose half in the next month as get a double.