Like this one???https://www.goldencapital.com/research/reports/vhb/vhb-mar2004.htm
Overview
Victhom Human Bionics is a Quebec-based medical product and prosthetic company focused on the commercialization of leading edge biomechanical and bionic systems. The Company’s lead commercial product is the world’s first commercially viable, motorized prosthetic leg. Partnered with Össur, the world’s second largest prosthetic device manufacturer and marketer, Victhom will provide the software and algorithms in exchange for royalty and R&D income.
Products
Victhom’s A-Leg Version 1 is the world’s first motorized leg prosthetic and allows for much more natural movement than traditional prostheses, which translates into less pain and easier to learn for the wearer. Predictive algorithms and Bluetooth wireless sensors allow the prosthetic to anticipate movement and direction. Since the device is non-invasive and a Class II device, the Company has received exemption from US FDA 510K notification filing.
Once approved for reimbursement by private insurance companies, the A-Leg device is expected to generate significant interest. While the lack of initial reimbursement may limit the leg’s early sales, the Company feels comfortable that insurers will see the health and mobility benefits of the A-Leg and will cover 100% of the cost within the next twelve to eighteen months. We expect sales to increase significantly in the latter half of 2005 if the 100% coverage is granted.
Future products are expected to be launched annually with other bionic products to include the Foot in 2005, the Ankle in 2006 and a second version of the Leg in 2007. Neurotechnology products will be launched in 2007 and 2008 for the Lower Limb and Urinary Incontinence, respectively. We expect that the product pipeline will continue to expand through acquisition and in-licensing.
Milestones in 2004
oOngoing R&D Income from Össur
oFebruary – Beta test (underway).
oMarch / April – Exchange graduation and financing
oApril – Formal launch of A-Leg
oSeptember – Commercial launch
Investment Hypothesis
As the only commercially viable, motorised prosthetic currently available, Victhom holds a unique market position in a potentially lucrative, niche segment. The Company has outsourced all manufacturing and marketing of the product to Össur and will focus solely on the development of other bionic products, while receiving double digit royalty payments from the Icelandic Company.
Recommendation
We are going to initiate coverage on Victhom Human Bionics with a Speculative Buy recommendation and a twelve month target price of $2.50.