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Covalon Technologies Ltd V.COV

Alternate Symbol(s):  CVALF

Covalon Technologies Ltd. is a patient-driven medical device company. Through a portfolio of patented technologies and solutions for advanced wound care, infection prevention, and medical device coatings, the Company offers gentler and more compassionate options for patients to heal with less infections, less pain, and better outcomes. Its solutions are designed for patients and made for care providers. It leverages its patented medical technology platforms and expertise in two ways: by developing products that are sold under Covalon’s name and by developing and commercializing medical products for other medical companies under development and license contracts. It provides a range of specialized medical devices, medical dressings and advanced medical technology designed for infection prevention, complex wound closure and perioperative care. Its perioperative care solutions provide antimicrobial protection of pre-operative skin, through postoperative incision care to scar prophylaxis.


TSXV:COV - Post by User

Bullboard Posts
Post by zenvestingon Apr 02, 2018 9:57am
140 Views
Post# 27813897

Licensing and services revenues - more than meets the eye

Licensing and services revenues - more than meets the eyeIn Q3 2017 Covalon had a spike in licensing revenue of $1.35 million, since then their "services" revenues have been up significantly, running at $400k last quarter. $400k divided by 40 hours, divided by thirteen weeks in a quarter, divided by $200 hourly rate could indicate that about 4 of Covalon's personnel are being kept busy on a development contract....IF we can assume those revenues are all from labor. In any case, this is a much higher level of effort than we have ever seen since Covalon began breaking out Services revenues. This time peroid also coincides with when Covalon told us about their new Centaur medical device coating platform, to reduce particulates over uncoated devices, which is quite a strong area of interest in the intravascular medical device companies since the drug coated stents of a decade ago were found to be causing more complications than they were preventing due to coatings flaking off over time. With this in mind, I held 90% of my position through the big spike because I thought maybe someone out there knew more than we did about what is behind these numbers.....and I want to be holding a large position if/ when we do get any further details about what is behind this increased level of "services", which typically relates to work on "development contracts". Long for over 4 years here.
Bullboard Posts