EMVision Medical Devices Ltd

ASX:EMV

EMVision Medical Devices Ltd

ASX:EMV
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$1.850 (0%)
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#123
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Reports (4) My Report Forum Investors
Forum Topics EMV EMV CEO Interview

Pinned straw:
Strawman
Added 5 months ago

Pre-revenue med-tech isn’t for the faint-hearted.. It carries real risks. But it does feel like EMVision is edging closer to the all-important commercialisation phase.

As Scott noted, this has been a 7-year journey for the company, and around $60 million invested into R&D. And that follows a decade of foundational work in a university setting. Long timelines like this are typical in med-tech. What’s not typical is when all that effort, time, and capital actually pays off for shareholders.

But EMVision does seem well placed to be one of the rare exceptions.

What I like:

  • They’ve been very prudent with capital. Dilution has been remarkably low compared to most peers in this space.
  • The market opportunity is clearly massive. Stroke is a huge global burden, and there’s nothing else like this currently on the market.
  • There’s real optionality beyond stroke, and the US, but that initial focus makes perfect sense.
  • The company has a decent runway, with over $12 million in the bank and non-dilutive grants still flowing.


Of course, more capital will be needed -- even if the FDA process is favourable. Sales teams, manufacturing, support... those costs aren’t yet material, but they will be. That’s not necessarily a negative; if there's meaningful traction, the ROI on that spend could be compelling. But it’s something to factor in.

On the flip side, a negative FDA outcome would likely decimate the share price. That's probably unlikely, but again something to be mindful of.

I exited a (very) small watching position earlier this year, mainly as part of a broader portfolio tidy-up, not due to any specific concerns about the business. It's a company I've kept on the radar, and I wouldn’t rule out getting back in if a few more things go their way. No doubt at a higher price, but also with (hopefully) less risk.

The recording of the meeting is now up on the Meetings page, and here’s the if you're interested.

EMVision Transcript.pdf
jcmleng
Added 5 months ago

Very good conversation with Scott, @Strawman! My takeaways:

Funding

Scott appeared very relaxed about funding - he used the phrase “not in pressing need”, which surprised me.

Confirmed EMV has an active grant strategy and a “portfolio of grants” where they go hard to win any and all available grants.

“Avoid dilution that does not add value” was another phrase Scott used - he elaborated a bit on Keysight and their being “very motivated to grow healthcare”. 

From these comments, I suspect EMV has already lined up Keysight for a funding top up, as a last resort, if non-dilutive funding dries up, and would go that route vs a general market capital raise. Funding is still a concern for me, but Scott’s relaxed attitude and funding-related comments provides comfort that it is very much under control.

Future Growth Beyond The Initial Focus on Stroke Detection

Running a parallel study at 2 Aust sites to continue collecting data relating to traumatic brain injury which goes into their training library. This is front-end load work to allow for subsequent FDA 510k approvals to add more indications, and hence more pathways to chase the TAM

Other use cases that are on EMV’s radar for future growth - Treatment for ischaemia, positive identification for haemorrhage, Ruling out no blood in the brain in the same way non-contrast CT does today 

Commercialisation Strategy

  • US-focus, FDA first, then back to Australia for TGA approval, then Europe for CE mark approval 
  • Within US, focus on the southern states which have the highest incidence of stroke rates vs national rates
  • Have good reference sites in Texas, Mayo Clinic etc
  • Expect to have direct sales force on the ground in the US - “need to know how to sell your own technology before someone else can sell it “


Very comfortable with where EMV is and is heading. The next 6-12M will be very interesting. But as SM says, still some ways to go to get to FDA approval, then commercialisation, before the technology and company takes off.

Discl: Held IRL and in SM

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