@Chagsy - very good points.

If, as BVN said, the gross margin contribution to the outlet(pharmacy) P&L is higher than other products on the shelf, then in a well-managed pharmacy I'd expect the owner-operator or the manager (chain) to make sure that attention doesn't drop. However, not all pharmacies are well-managed, and this is something outside of BVN's control. Shelf space will indeed be re-allocated, but if the products sell and make a solid contribution to store perforamnce, retail 101 says that the space will be maintained.

However, you are making a slightly different point. If staff performance has a "decline curve" over time, then you could get into the downward spiral of: fewer recommendations, less sales, less space, fewer recommendations, less sales... etc. And, as you say, staff turnover (which is high in retail generally, and presumably also high in pharmacies - particularly chains) may be an aggravating factor. I hadn't thought at that level of detail.

On "level of education" and link between the timing of education to the vigour of product recommendation in the pharmacy, again this is a very good point. This is where account management is key. You'd expect the person on BVN's team responsible for account management to be tracking store-level performance month by month, and would be able to deploy "refresher" training in a data-driven manner. (Of course, for the chains like Terry White and Priceline, they probably don't have store-level visibility.)

I suppose it would be too much to expect that $BIO will report LFL sales, which is what we'd really need to track this. Hopefully, they will report number of outlets, which should be enough to model (ballpark) the LFL and new store contributions over time, based on historical information. (Q&A for future SM Meetings!)

As to the discretionary spend considerations - while that is true, I am prepared to take a "through the cycle" view on this one, particularly given the progress they are achieving even given the current macro-retail-environment.

My stake is a small initial one. In part so that I pay attention to the stock and the segment. But also so that if it goes 5x or 10x over the next 5-10 years, it is meaningful at a portfolio level. Further allocations will be driven by performance. I did think about holding off. But my portfolio is a bit underweight at the microcap, speccy end, and so that helped tip me into earlier action.

I always think I'm too soft in these interviews @Tezzdog .. Still, there's not a lot to be gained in trying to go for a "gotcha", and hopefully a friendlier atmosphere help the guests open up a bit more.

I agree @mikebrisy, Blair was impressive. Really gave a few non-standard answers, which was refreshing.

I like their staged approach, and the focus on costs at so early a stage is encouraging. Clearly he stands behind the product and the efficacy. Good to see there's a scientific footing to their product (I remember years ago asking the Blackmores CEO about the lack of firm science behind many of the company's claims..it did not go down well haha)

The company doesn't seem cheap at 12x sales, but such measures don't really offer much insight given the stage of development, pace of growth, and size of the market. @Chagsy raises some good points, but i'll certainly be adding it to my watchlist too.

Honestly, I could see a takeover offer at some stage -- for which the best defense might be a very favourable market sentiment.

@Strawman Maybe you are too soft, if the interview was a shareholder or analyst "accountability" conversation. But its not.

I think the way in which you engage the interviewees on their businesses, taps in to the natural enthusiasm they have to want to talk about their business, and I think for those who are prepared and are listening carefully, we get a lot more insight. Taking a harder tone might push them back on to the IR speaking points (if they have them!).

Obviously, in a seasoned large cap., executives are well-enough disciplined that it probably wouldn't make much different. But I think at the smaller cap end, you want them talking as fullsomely about the business as possible.

One big takeway I got, that I missed in my research, was the whole "genus, species, strain" thing. Basic micro-bio, I know, but now I can go back and look at my industry analysis because everything I have done so far has been through the lens of genus and species,... and that's a very relevant point. He also then linked this clearly to the IP question, which I am very glad you asked.

Again, on marketing strategy, I got a much sharper understanding of the $BIO approach, versus - for example - BioGaia and Seed (the latter, I'd also come across in my research last week, but did not get the nuances of their strategy which Blair explained succinctly).

There was so much in the interview, I'm sure I'll come back to it in future.

So, to come back to the original topic of this post: I think your manner helps get these people to really open up and talk about their businesses. And if we are prepared to listen, then there is a huge amount to be gained.

So, as the song goes, "Don't go changing ....."

Ha, no chance :)

Thanks Mike