TSXV:RHT.H - Post by User
Comment by
narmaron Oct 25, 2015 11:21pm
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Post# 24225750
RE:RE:facts
RE:RE:facts Top 10 Pharma:
There are many reasons why any top 10 Pharma would rarely allow a small cap or even mid cap to name them in a press release. Just a few reasons are the following:
1) Offering free publicity to a junior at this stage gets other pharma players to take notice. This combined with a valuation uplift on the back of the name,
2) Big Pharmas want to protect their products and financials from being with the public. It's clear that on a consolidated/group level, investors may not know what the pharma sales/margins are off of any specific product (tele-medicine equipment) or service.
3) Insurance on the upside: big pharma grow through M&A transactions and thus if Moseda or any other small/med cap was to grow their sales to a certain level, the unnamed pharma or its competition may seek to take them out.
Recent PO:
As to the type of sale and margins, no new small/med cap player would disclose those on a PO by PO basis rather they do so within their financials. Clearly this is done as margins on each PO or to each client may vary and it is commercially sensitive for Moseda to give such details away at this stage.
To the point of selling at a margin, typically all distributors have to sell at a minimum margin that is set by the top pharma. They could sell at a higher price point, but can't start slashing the prices below what top pharma sells others. Also, on the software component of any sale, the margins are usually very high.
Good luck to all, narmar