I read this AFR article and thought of what an impressive...

I read this AFR article and thought of what an impressive investment case Clinuvel has become. Michael Heine (who is being interview here) is a new billionaire having floated his company Netwealth in the last year. This doesn't take into account any new indication or new products which may or may not happen. ASX 200 and some analyst interest could see Clinuvel kick again.

"Every company is different and therefore one needs to determine what is important and relevant in a particular situation but some of the things that are important to me when investing in, or managing a company are:The company should have a model of recurring income rather than be deal-oriented. Investors place a higher value on a steady and growing income."

Currently over 95% of patients return year after year. Long term repeat use demonstrated in Swiss and Italian data. No cure for disease in the foreseeable future.

"I like companies that have a bigger gross margin than a company with a high turnover but with skinny margins."  

50% margin last financial year and increasing margins with larger market penetration (over 70% margin last quarter)

"It is important that reported profit is highly cash-generative and not just accounting profits. Cash is need for reinvestment as well as paying dividends to shareholders. I don't like companies that do not generate cash in the bank!"

All cash. Dividend paid and cash pile growing nicely.

"Companies should have little or no debt. Debt is not all bad but must be well managed and conservative."

No debt

"Good, proven management whose interests are also aligned with shareholders is important."

CEO now largest shareholder. NED and probable next chair just popped in 13 million cash of his own money. Management is indeed very stable.

"The industry the company operates in should have a strong future and not be susceptible to market disrupters. Or is the company the disrupter that is going to take market share from the incumbents?"

Health funded by governments or government backed payors. Orphan designation gives protection for 6-7 more years in EU and 7 years from approval in US

"How do you measure the value of a non-income-producing growth company?At zero!"