QT Vascular

[greengiraffe]

http://www.businesstimes.com.sg/premium/...s-20140815

PUBLISHED AUGUST 15, 2014
QT Vascular's Q2 loss widens on expenses
BYMINDY TAN
tanmindy@sph.com.sg @MindyTanBT

BALLOONING administrative and research and development expenses caused Catalist-listed QT Vascular's net loss for the quarter ended June to widen, from US$11.4 million to US$13.5 million even as revenue tripled. For the second quarter, revenue rose from US$1.03 million to US$3.23 million.
The increase in revenue was mainly due to an increase in sales of its Chocolate PTA Balloon Catheter (Chocolate PTA), under the group's US distribution agreement with Cordis.
This was however dragged down by increases in administrative expenses from US$1.6 million to US$2.8 million and R&D expenses which increased from an insignificant amount to US$1.9 million. Loss per share for the quarter was US$0.02 compared with US$8.66 a year ago.
For the six months ended June, revenue hit US$6.1 million. Net attributable loss for the period was US$22.7 million, compared with US$15.5 million a year ago.

[valuebuddies]

Source from CIMB:

QT Vascular (AD, TP: S$0.73) - The best years are ahead
Target S$0.73 (Stock Rating: ADD)

Headline losses are narrowing for QTV due to robust rates of product adoption in the vascular disease treatment world. QTV’s performance is tracked via its sales units, which came in above expectation (+345% yoy). We cut our FY14 EPS forecast by 4% for some non-recurring items but our blended valuation-based target price is intact. Despite the recent share price drop on moratorium lock-up expiry, we keep our Add call with the roll-out of coronary Chocolate products in the US and EU in late-4Q14 and regulatory approval in Japan for Chocolate products early next year being the catalysts. We see QTV’s value proposition translating into a better 4Q14 and rosier 2015.


High product adoption rate
9M14 revenue alone is 73% higher than that of the entire FY13, with the Cordis distribution contract kicking in (Apr 14); QTV sold 8,397 units in 3Q14 (+346% yoy) and 21,441 units in 9M14 (+345% yoy). Importantly, 3Q14 sales were based on an agreed price under its US distribution agreement with Cordis (50% discount to previous ASP). This implies that 3Q14 revenue (US$3.4m) reflects a six-fold increase in market penetration from a year ago, when QTV employed a direct sales model. Stripping out one-off items, QTV’s net losses for 3Q14 narrowed to US$3.6m, and this is the best set of bottomline the group has seen.

Making more inroads
QTV has enrolled the first European patients in the ENDURE Trial in Germany, to assess the efficacy of the novel Drug Coated Chocolate PTA (Chocolate Touch). Multiple patients have already been enrolled in this study. It has also applied for CE Mark approval with respect to the Chocolate Touch. QTV has signed distribution agreements for the sales of its Chocolate PTA in Italy, Austria, Turkey, and Australia. These agreements will widen Chocolate PTA balloon’s availability in these markets, which is a validation of the growing recognition of Chocolate PTA’s clinical benefits.

The best years are ahead
The adoption of Glider family products is expected to further boost QTV's sales in Asia as scheduled-to-ship orders to China and Japan by 4Q14, and this is expected to have a positive impact on 4Q14 sales. Management expects this trend to continue as additional regulatory approvals for the these products in the Asia Pacific region are expected next year.

______________________

Not vested, simply don't like loss making company

[greengiraffe]

Reminds me of Biosensors... anyway, its tough for value guys like us to evaluate the attractiveness of such high risks counters...

Not Vested
GG

Source from CIMB:

QT Vascular (AD, TP: S$0.73) - The best years are ahead
Target S$0.73 (Stock Rating: ADD)

Headline losses are narrowing for QTV due to robust rates of product adoption in the vascular disease treatment world. QTV’s performance is tracked via its sales units, which came in above expectation (+345% yoy). We cut our FY14 EPS forecast by 4% for some non-recurring items but our blended valuation-based target price is intact. Despite the recent share price drop on moratorium lock-up expiry, we keep our Add call with the roll-out of coronary Chocolate products in the US and EU in late-4Q14 and regulatory approval in Japan for Chocolate products early next year being the catalysts. We see QTV’s value proposition translating into a better 4Q14 and rosier 2015.


High product adoption rate
9M14 revenue alone is 73% higher than that of the entire FY13, with the Cordis distribution contract kicking in (Apr 14); QTV sold 8,397 units in 3Q14 (+346% yoy) and 21,441 units in 9M14 (+345% yoy). Importantly, 3Q14 sales were based on an agreed price under its US distribution agreement with Cordis (50% discount to previous ASP). This implies that 3Q14 revenue (US$3.4m) reflects a six-fold increase in market penetration from a year ago, when QTV employed a direct sales model. Stripping out one-off items, QTV’s net losses for 3Q14 narrowed to US$3.6m, and this is the best set of bottomline the group has seen.

Making more inroads
QTV has enrolled the first European patients in the ENDURE Trial in Germany, to assess the efficacy of the novel Drug Coated Chocolate PTA (Chocolate Touch). Multiple patients have already been enrolled in this study. It has also applied for CE Mark approval with respect to the Chocolate Touch. QTV has signed distribution agreements for the sales of its Chocolate PTA in Italy, Austria, Turkey, and Australia. These agreements will widen Chocolate PTA balloon’s availability in these markets, which is a validation of the growing recognition of Chocolate PTA’s clinical benefits.

The best years are ahead
The adoption of Glider family products is expected to further boost QTV's sales in Asia as scheduled-to-ship orders to China and Japan by 4Q14, and this is expected to have a positive impact on 4Q14 sales. Management expects this trend to continue as additional regulatory approvals for the these products in the Asia Pacific region are expected next year.

______________________

Not vested, simply don't like loss making company

[valuebuddies]

Not that tough, they just have few product, and the only "life saving" products are the chocolate. But, no one would simply able to reliably predict how many people would undergo ballooning operation in a year. 73c based on pure imaginations and expectations, I would give 2 thumbs up to CIMB!

[lawrencej]

Hi all,

Have some queries about the following and would like to seek some guidance on this vested company.

This company is going issue more employee share option for their employee, one of the proposed resolution is to increased the allocated shares from 15% to 18%.

1. It is a norm for a company to attempt to issue new employee share scheme on top of their existing ones?
Why is there a need for this action?

2. By doing this, won't it dilute the current share holders as company fund will flow to employee when they exercise their options?

3. If evaluating this company based on employee scheme, can I assume that this company is transferring money from public shareholder to employee using the scheme ?

Hope some one can help to advise.

Thanks

[valuebuddies]

Q1 2015 results is out:

http://infopub.sgx.com/FileOpen/QTVascul...eID=349831

Unit sales seems to have doubled from last year, but in fact not much changes from the last 2 quarters. Units sold in Q1 2015 was 8,098 versus 8,397 in Q3 2014 (30,344 sold for FY2014). Is this signalling that the market acceptance rate for its products is near the peak, but yet it has been spending millions in marketing and distributing efforts.

Another worry sign is that cash is draining, net cash outflow for 1st 3 months of the year near 10M, how long more will the remaining balance of 9.7M last? Both placement shares or borrowing indeed negative to the share price.

The NAV at 31.03.2015 is just US$0.032, which translates into 5x PE. I think high PE for healthcare counter is generally acceptable in view of the potential intrinsic and intangible value, but is quite exceptional for a loss making company in its infancy stage.

Overall, I find that results is disappointing, I was expecting to see a double digits jump in sales volume versus the previous quarters but this never happened.

[ not vested, sideline for opportunities ]

[valuebuddies]

UOB maintained buy call with reduced target price

https://37778a74-a-62cb3a1a-s-sites.goog...edirects=0

Revenue was not within our expectations, representing 10.5% of our full-year
estimates. As compared with the corresponding year where QTVC was selling the
Chocolate PTA through direct sales and had higher ASPs, the selling prices provided to
Johnson & Johnson (Cordis) were lower and hence resulted in slower revenue growth.
The lower ASP is expected to be offset by the increase in volume as the Chocolate PTA
continues to gain sales traction. In addition, total 1Q15 unit sales of 8,098 were lower
than our estimated 18,000 units.

[valuebuddies]

QT Vascular Ltd. Announces First Patients Enrolled in Clinical Study of Chocolate Touch PTCA Coronary Drugcoated Balloon

QT Vascular Ltd. announced it has enrolled the first 11 patients in its First-In-Human (FIH) study of its novel Chocolate Touch PTCA (Coronary Drug Coated Chocolate) in the Dominican Republic. This study initiation represents achievement of key milestone ahead of time. Working closely with local and US physicians, QT Vascular has embarked on a potentially revolutionary study to evaluate the clinical utility of the Chocolate Touch PTCA for the treatment of de novo coronary lesions. If successful, this study would provide initial evidence of a new and unique device that could be able to treat the most common coronary disease in a way that minimizes the placement of stents in at least in some lesion subsets. Stenting is currently the most commonly used treatment in coronary interventions, but it is a permanent implant that requires expensive long- term dual anti-platelet therapy and is associated with small but significant risks of fracture and late-thrombosis. The initial procedural outcomes with Chocolate Touch PTCA were successful in all 11 patients and importantly, no stent placement was required. There were also no cases with abrupt closure and no significant dissections were observed.

_____________________

Share price is currently down 7%

[valuebuddies]

Am surprised to know that Gary Ng, formerly CIMB analyst, is now with QT Vascular as investors relations!

http://www.qtvascular.com/news/singapore_exchange/

[valuebuddies]

Down another 8% today, year to date negative 45%. Current price of 16.6c is almost near the lowest pre-ipo investors price, what do you buddies think?

[ not vested, sideline for opportunities ]