TIS 0.00% 0.0¢ tissue therapies limited

Well done Steve and team !, page-37

  1. 85 Posts.
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    I remember that it was discussed in an investor presentation.

    If you review the 2013 Investor Presentation on ASX, you will find the 4th November 2013 Investor Presentation.
    http://www.asx.com.au/asx/statistics/announcements.do?by=asxCode&asxCode=tis&timeframe=Y&year=2013
    In the middle of the ASX site you see the document referred as Investor Presentation of 23 pages.
    At page 3 there is the following statement, that has been discussed too in the Q&A Session afterwards:
    "
    Health economic / reimbursement studies: 20 – 30% benefit from VitroGro® ECM – UK and German Government databases: matched patient outcomes and costs data. – Private German health fund databases: matched patient outcomes and cost data. – valid throughout EU and internationally. – maximum market access.

    "

    Logically, the results of this analysis are company controlled documents, and have substantial competitive value. As you can see the company has detailed informations on the market and related penetration strategies. Be sure that these numbers do not follow down from the sky, but are the results of years of studies. It si enough to get through the CE hurdle, and the working tools are already available internally and to the sales force (Quintales).
    Management has given us a hint on health economics.
    The 20-30% benefit using VitroGro© ECM compared to standard treatments (that are pressure therapies).
    The studies are based using proposed selling price of VitroGro© to the care providers, compared to current cost standard of the related treatments used by the practitioners.

    This studies have substantial value and will be speed up sales substantially and reinforce the Reimbursement schemes.

    Moreover, if you are able to get from Baillieu Holst Research (Baillieu Holst Ltd ABN 74 006 519 393 www.baillieuholst.com.au) the latest report on Tissue Therapies dated 13th june 2014 (Australian Life Sciences by Stuart Roberts), you will be able to see at page 43 that the number are based on:

    "
    We assumed 75-85% gross margins for the product, and SG&A costs of 20-25% of revenue, with a 0.1%-0.2% p.a. increase in gross margins and reductions in SG&A as a percentage of revenue; and
    "
    As you can see there is a detailed market study using VitroGro© ECM compared to standard treatments for the UK and Germany (with a 20-30% cost reduction for the Care Providers), and based on a P&L Model that consider a 75-85% gross margin and almost all the costs based on a variable cost scheme and not a fixed cost scheme, due to this incredible good structure organised by the management that outsource practically everything outside based on a profit/cost success basis (Quintales, Eurogentec, Catalent, Movianto).
    Based on the above, the sales/cost break-even point must be very low and evidence a smart business approach with a flexible cost system that will maximise P&L potentials (sales, gross profit) and shareholders interests.
 
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