Disclaimer: I am not a monetary advisor neither is this monetary recommendation, make your personal choices.
Present Place: Lengthy shares (very small place relative to portfolio)
-SENS sells EGM’s (Steady Glucose Monitor) for diabetes – mainly it’s a patch in your arm you put on as an alternative of getting pricked by needles to check you blood ranges
-I hate needles/finger pricks, and this know-how doesn’t require you to prick your self with a needle. That alone ought to be sufficient however their CGM’s final for as much as 90 days and they’re creating 180 day and 365 day CGM’s. Their opponents are roughly 10-15 days. To not point out it’s a needle vs a capsule that will get implanted below your pores and skin *I don’t have diabetes however actually simply hate needles so I feel there may very well be worth right here lol*
-Their CGM’s can provide you with a warning through your smartwatches/smartphones
-Achieved administration workforce, they simply pump out patents
-They’re simply breaking into the US market as gross sales in USA solely $3M final 12 months (2019) as most gross sales got here from Europe roughly $18M (2019).
-Projected income of 12-15M – at the moment that’s on tempo by the primary 2 quarters of 2021 (Income: 1Q-21 & 2Q-21 was $2.8M & $3.3M respectively, a 15% improve QoQ
-Ascensia partnership seems to be going properly – Ascensia is management of promoting and different industrial duties whereas Senseonics can now focus solely on product growth
-System Accuracy is main the trade – SENS product is roughly 8% extra correct than the trade
-They’re within the technique of creating 180 day and 360 day EGM’s (unsure when these might be prepared for market although or what the timeframe is with FDA approval on these) however I feel the 180 day EGM’s are being utilized in Europe already
-A lot of Debt
-COVID CRUSHED their revenues in 2020
-COVID is delaying a number of FDA approvals to maneuver together with scientific trials for the longer lasting CGM’s and many others.
-Very speculative play, excessive danger, doubtlessly excessive reward
-Do not see them being worthwhile any time quickly
Financials truthfully look fairly brutal which is predicted for a biotech kind of firm – however I feel they might have turned the nook right here and we may very well be seeing an enchancment.
A long run have a look at Income, COGS, Gross Revenue & total profitability appears to be like fairly bleak – however for those who deal with the previous 5 quarters there appears to be like to be enchancment. I feel this exhibits the partnership with Ascensia goes properly up to now and the product really has optimistic Gross Margins for the previous 4 quarters:
Nonetheless, this firm is grossly unprofitable which is extraordinarily regarding to me even regardless of the advance in Revenues and GP up to now 4 quarters. You may barely even see the Income bar relative to the Lack of the corporate. I’m completely speculating, however it nearly appears to be like as if the most effective plan of action for this firm can be to be purchased out by one in all its main opponents for his or her know-how, like Dexcom for instance.
Regardless, I feel if the know-how is really this nice and THAT MUCH higher than the competitors, then it’s a small danger I’m open to take.
Trying ahead to listening to what folks take into consideration this firm and their know-how as I’m no medical professional by any means…