![]() ![]() Effectively, the trend will be flat to slightly up in terms of console unit placements on a sequential basis. That being said, if you do strip out this large order that we received in the second quarter, that trend is much less - is not the same. Third quarter to fourth, effectively, as we shared with you all over the summer, console units are expected to be down sequentially in total - across the total console unit placement number. ![]() we would encourage you to not, again, extrapolate the COVID-related trends from the second and third quarter and think about it more from the base business You should think about the vast majority of the delta being recognized in the third quarter. Over the summer, we talked about $7 million associated with that Q2 order, and we recognize just around $3 million of that in the second quarter. It appears that a significant portion of the current growth was driven by a large one time COVID related order O n the first conference call as a public company, CEO Leslie Trigg was cautious about providing explicit guidance and careful about not over promising future expectations. They are burning significant cash currently. They've quadrupled revenue from last year, but the product itself is still significantly negative gross margin. Outset's results are less than confidence inspiring, and they seem many years away from turning profit. Considering how far above the IPO price shares trade at, I think it's likely that a significant amount of existing holders will look to ring the cash register on at least a part of their stake. The current ownership structure is above. #Outset medical ipo price full#On this date, the full 42.7 million shares will become eligible for sale, compared to the current float of around 15 million shares. So the locked up shares will be eligible to be sold on Monday, March 15. Date and Size of Unlockġ80 days from the IPO date of September 15th, 2020 is March 14, 2021, a Sunday. It's just some of the existing shareholders not wanting to wait the full 180 days to sell. The company receives no proceeds from this. Since it was announced and the secondary closed, shares dropped 18% and the secondary priced at $53/share. They did so through a secondary offering. Shares hit a high of $64 on November 30th and some existing holders wanted to sell before the 180 day lockup ended. There's an old Wall St expression "When the ducks are quacking, feed them." Currently trading around $49, shares are still far higher than the IPO price. On September 15th, the first day of trading, shares opened above $50 and finished above $60. Originally slated to sell 7.6 million shares at $22-24, it sold an upsized offering of 10.3 million shares for $27/share. Outset Medical had a lot of interest in their IPO. I wonder if they're only growing because the price is unsustainably low. I believe the current $35-40 million/year run rate should be sufficient scale to generate some gross profit, but they're not even close, losing 41% on each sale. Meanwhile, Fresenius Medical Care ( FMS) purchased NxStage Medical for $2 billion in cash several years ago for their home dialysis device.Īnother piece of the bear case is that Outset is selling Tablo at a negative gross margin. #Outset medical ipo price trial#Bear CaseĪside from the usual concerns around profitability and valuation which I'll cover below, they're not the only player in the space, and many of the competitors are larger and better capitalized.įor example, CVS launched a clinical trial for Hemocare, an at home dialysis machine in July 2019. Creating a compelling technology and grabbing even a small share of the market could be extremely lucrative. of Michigan total spending exceeded $120 billion in 2017 alone. Bull CaseĪs straightforward as it gets - treating Chronic Kidney Disease (CKD) and End Stage Renal Disease (ESRD) is a massive market. In March 2020, the FDA approved its use for in-home dialysis, which has generated a lot of excitement around the stock. It's not a new product it was approved back in 2015 as a 510k device. Tablo is more compact than many other dialysis machines and includes water purification integration. Outset Medical ( NASDAQ: OM) is a medical device maker that produces a novel dialysis machine called the Tablo Hemodialysis System. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |