Sphere Medical Share Discussion Threads

[del44] 28/2/2017 16:15

The CFO of SPHR made it known...

[gnnmartin] 28/2/2017 14:54

CC, thanks. Do you have a reference for that (the 7%), please? If not, what was your source?

[cc2014] 28/2/2017 13:13

Loan is at 7%.

The thought process is that they Europe market is worth £130m a year with USA and Japan to follow.

Their margin is around 60-70% so it follows that whilst they need cash while they build up the income stream once they get past a certain point you could be looking at profits of £50m+ per annum from Europe alone.

The big answered question is how fast they can build up sales

[gnnmartin] 28/2/2017 10:39

I've had these on my watch list, so looked at the results and at the Trinity note out today. Trinity say they reckon the company (current market cap. £7.2m) must raise £7m-£8m this coming year, and I guess surely next year too. That seems to me the major risk. To survive (IMO) it must find partners willing to provide capital in return for territorial rights. I'm interested to hear if I'm missing something.

Bearing in mind that the recent £3m loan is not remotely enough to take Sphere through to break even, it is particularly worrying (to me, anyhow) that no terms were announced associated with this loan. I might go to the meeting on 21st, but only might. If anyone here goes and cares to ask about the need to raise cash, and on the terms of the recent loan, I shall be grateful to hear the company's reply.

[tini5] 28/2/2017 10:03

Eeesh. Can't believe I bought in at 13p. Will come back later...much much much later.

[longshanks] 28/2/2017 09:37

Ditto, pug.Pity though 'cos on paper it sounds a great technical innovation that will save lives.

[pugugly] 28/2/2017 09:34

Memo to self - Avoid.

[fillipe] 28/2/2017 09:34

cumnor - Trinity Delta, today - 21p note.



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[fillipe] 28/2/2017 09:28

This one has been ramped to high heaven by some twitterati. Some of the rampers' followers will have been well turned over and roasted.

f

[waterloo01] 28/2/2017 08:59

Broker note out this AM with 21p target but also says need to raise about £7m (ie current market cap).

[cumnor] 28/2/2017 08:53

Not sure if anyone would want to buy it-at present rate of spend they will be in hock big time with single product which may or may not take off and in an area where big device manufacturers have the dosh, marketing and know how to enter at will. They have had ample time to convince potential purchasers to at least start generating far more than the paltry sales they seem to have already generated. imo

[waterloo01] 28/2/2017 08:18

Dreadful numbers. £60k sales and funds needed. Agree only way this will ever make a return is if it's sold, however for the BOD that would be the equivalent of turkeys voting for Xmas.

[cc2014] 24/2/2017 13:07

hmm. A few large buys coming in. No idea why

[del44] 22/2/2017 20:41

Thank you Tim....

[cc2014] 22/2/2017 17:00

Q: So far you have made individual announcements for each Proxima sale, will this continue? If it does, investors will assume no announcements no sales which isn’t helpful.
A: We have made announcement for the first sales in each new country and will probably continue to do so, this is not the same as announcing every sale. We will update the market on sales progress when we release results on February 28th.


So, what this appears to say is that individual announcements for each country won't happen and that we could be quite happily selling P4 right now in volume in UK, Germany, Benelux and Italy or they could be selling zero.

It's all a mystery

[cc2014] 22/2/2017 12:32

There's more options on 11/6/13 on which he again exercised and sold on the same day.

Another 640k at 8.5p and 113k at 7.75p all sold at 36.5p

I guess what he's saying is that he could have exercised the options much sooner and therefore had a long term commitment to the company

I don't see it like that though. If you are given options it's very different from investing your own money

[longshanks] 22/2/2017 11:59

Richard Wright purchases in APH:

12.09.2007 90k at 7.77p
15.10.2008 100k at 4.0p

On 13.09.2010 he exercised options on 363k shares: buying at 8.25p. He sold the lot at 37.25p on the same day.

On 16.09.2011 he exercised options on 600k shares - again selling the lot.

He may well buy shares in SPHR in the coming weeks - but I think it safe to say that he won't buy too many.

[timbo003] 22/2/2017 11:33

yes CC and I think he was implying that he was one of the directors who was buying at that time, I haven't checked though

[cc2014] 22/2/2017 11:14

Thank you for your time and efforts on this Tim.

The answer on Director purchases is interesting to say the least. I need to do my research but I guess he's implying that when you see the directors start buying that's the signal to add.

Update the market on sales on 28th Feb. I guess that's ok - he couldn't get into that in the presentation as that would have been inappropriate in relation to RNS rules - if indeed there is something to say

[waterloo01] 22/2/2017 11:10

timbo, excellent write up, thanks. Will be good to see results. Let's hope they have made some real progress before they come back for more cash!

[timbo003] 22/2/2017 11:07

See below a few notes from yesterday’s Proactive Investors Biotech Capital meeting (please feel free to copy elsewhere). Richard Wright (CFO) gave the presentation which lasted around 20 minutes and there was around 10 more minutes allocated for Q&As, the notes on Q&As are not a verbatim record, just a summary of what was said to the best of my recollection. A video of the presentations and the Q&A session should be available in a couple of days.



Questions and Answers (during presentation)


Q: So far you have made individual announcements for each Proxima sale, will this continue? If it does, investors will assume no announcements no sales which isn’t helpful.
A: We have made announcement for the first sales in each new country and will probably continue to do so, this is not the same as announcing every sale. We will update the market on sales progress when we release results on February 28th.

Q: Who are your main competitors?
A: Our main competition is inertia within the Health services.

Q: Will P3 customers convert to P4?
A: We will automatically convert everyone on P3 to P4

Q: What does it cost to buy a P4 unit?
A: The customer can either buy the monitor (a few £ thousand) or lease. Training does not take long (30 – 40 minutes)

Q: What are you doing to combat inertia?
A: We are indentifying the people within the health care services who are most up for change.

Q: What about treating Neonates?
A: This project is in hand, we will refine the collection system (thinner tubes) to facilitate this.


Question and Answers (post presentation)

Q: The recent news of the £3M loan on very reasonable commercial terms (circa 7% p.a.) , was excellent news and to my mind re-risks the shares to a significant extent as it gives us far more flexibility regarding future fund raising. You should have press ganged Trinity Delta into releasing a note on that.
A: Yes, it was good news, Trinity Delta did not put out a note, but Panmure Gordon did make a comment.

Q: Some research notes imply that you might need to raise a further £10M to reach breakeven, does this seem reasonable?
A: We will need to raise more cash. £10-15m would seem like a reasonable estimate for an analyst to make.

Q: You will be out of a closed period in a couple of weeks, the directors don’t have much skin in the game, investors will be expecting them to remedy this following the results, can you comment?
A: Cannot comment, other than to say you might want to look at the director share purchases during my tenure at Alliance Pharma (APH), especially in the dark days when the share price was in single figures.

Q: Regarding the USA, would you now envisage going for FDA approval first or obtaining a partner first?
A: Getting regulatory approval before getting a partner seems the more likely option.

Q: What regulatory route do you think we will have to take in the USA and how are you identifying the best route to take?
A: We have US consultants who have been advising on the optimal regulatory route. We think we can get it through via the 510K route which could take months rather than years for approval, but we will probably need to do a few tweaks to the EU CE approval file first. The alternative would be to go down the PMA route (pre-market approval) for a class III medical device, which would probably take several years.

[cc2014] 22/2/2017 09:06

The most interesting things about that slide apart from it confirms the RLAM sales which we knew from yesterday is:
1. The 775k sale from about 2 months ago must have been Oxford Capital Partners so they are out the way as they won't have any left
2. Herald have increased their stake by 155k shares, so that's an indication to me they are looking to add rather than depart