strengthening position

Following the 3rd quarter results the company is now at break even if R & D costs are removed from their financials. Ave sale price/unit is just under $100kUS.
223 units sold world wide.

Unfortunately the company cannot give guidance on likely FDA approval which is typical of the FDA. Early next year is my tip. However they claim to be ready to meet the market when it happens.

l sat through 1.5 hrs of their conference call which was a marathon and you have to be impressed at their approach and confidence. With global sales about to ramp up and commencement of the mvad trials things are looking good.

Thought l would do some basic sums based on 5000 units sold per annum to see how the SP would be travelling.

5000 units/pa = approx $500mill. Compare this with Thoratec with 2nd quarter sales of heartmate of $184m assuming same price equates to approx 7500 units pa.

Assume cost of production is 20%, r & d of $50 mill/pa & admin,marketing etc of $60mill pa leaves nett profit of $290m.

Shares on issue (usa) 14 mill, p.e of 15 and $AUD/$USD at parity gives an SP of $9 AUS. PE of 20 = SP $12 AUD.

Please feel free to pick my figures to bits.

Consider this could be the case in 12 months. Here we go !! Still find it amazing how there is almost no interest in this stock here in Australia where it all began. Another great loss to our economy.