ImpediMed Limited (ASX.IPD) has confirmed its focus on cash flow break-even and profitability within previously stated timelines, as well as future plans for its heart and renal failure programmes. To assist shareholders, we provide the following information.
Key Points
- The company’s recently announced accelerated growth plan creates targeted market share and revenue at profitability significantly higher than versus the prior break-even plan.
- This will mean that the company will achieve its profitability goals with far greater momentum and with a far more rapid outlook for profits beyond break-even.
- Achieving a strong commercial foothold in oncology is the key to the success of ImpediMed.
- The first mover opportunity within Oncology is significant and immediately available to the company.
- Cancer-related lymphoedema is our beachhead offering within oncology, but there are many more applications for our SOZO technology within oncology to increase our subscription fee within our existing customer base.
- Significant momentum with Private Payors is creating an expanded sales pipeline.
- Heart and Renal Failure are opportunities of the future, but at the right time.
- ImpediMed remains committed to the ASX listing for the long-term.
Targeted Market Share and Revenue at Profitability Significantly Increased Versus Break-Even Plan
- With the appropriate resources now available to accelerate scale, ImpediMed’s current oncology focused Growth Plan results in far greater outcomes for the company, in approximately the same timeframe as the previously stated Break-Even Plan:
- Prior to the recent capital raise, the company was operating under a slower growth break-even plan that equated to a 2% – 4% market share at the time of achieving cash flow break-even, with a slow to moderate growth path thereafter.
- Based on the accelerating timelines for private payor policies and the funding from the capital raise, the company is targeting profitability with a market share of 5% – 10% in approximately the same timeframes, with a high growth path thereafter.
Heart and renal failure are opportunities of the future, but at the right time
- Our potential applications in both heart and renal are relatively early stage in their development and require significant human resources and invested cost to meaningfully progress.
- Expanding activities in heart and renal failure today would impact the resource committed to our primary market opportunity.
- ImpediMed continues to advance the technology for these indications for future development. However, in light of the scale of the oncology opportunity, diverting our focus to heart or renal at this time is not in the interests of our shareholders.
Committed to ASX listing The ImpediMed board and management team believe that the ASX is the appropriate listing for the company, and can confirm there is no intention to leave the ASX or seek listing on the NASDAQ or any other foreign exchange
