The value of a NewCo..It was huge news in May when giants Medtronic (who was rumored last year to be interested in Dialco) and Davita (voted "most desperate to have their own pump") joined forces to create a NewCo focused on "In-Home Kidney care".
With Medtronic's tech might and DaVita's 200K+ patients it is quite a compelling venture.
BUT.. where's the pump(s)? These giants did not get together to create a consumables company. So where is it.
Imagine in Q1 when an IPO is announced for NewCo.. without a pump it's not very exciting- they will need to do a lot of heavy lifting to do to explain their roadmap and value propostion.
BUT imagine the NewCo IPO after they have aquired a FDA approved clinical use pump (SAMI) and a pump in the final months of it's FDA usability trial for In-Home use (DIMI).
What is their value then? Would that IPO double? triple? Would the difference literally be enough to pay for the aquisiton of the two pumps?
Remember- Davita has over 3,000 clinics they would sell their own SAMI pumps to. Add on 30% of their 200k patients enjoying new DIMI pumps at home...
Well, we'll see. Maybe next week...