RE:RE:RE:RE:RE:RE:RE:RE:pre CC newsI am certain Rumble wishes he could give more forward guidance, but cannot, except to say Getinge has ordered at least the 100 units for this first year of their deal. And, he has said that Quebec can now produce over 200 units per year. We will see how much colour he can add to thi and his projectons during the cc, if the bidding for TSO3 hasn't already started in the next 10 days. As GoPats, I believe, mentioned, any bidder will want to go now, or ASAP, as the value of this company is increasing by the day and week.
I don't buy at all the argument that potential acquirers already in the low temperature space might not be aggressive in their bids for fear of tacitly admitting that TSO3 has superior technology. Everyone already knows, or will as soon as a Getinge rep briefs them and they are presented with the FDA claims, that the claims for the VP4 are now and always will be superior to any other H2O2 or ETO sterilizers in the field. The hospital purchasers and decision makers are extremely aware of the problems of contaminated scopes and are quietly clamoring for a solution. They are preparing for the future in any sterilizer purchase they make. They are watching this low temperature revolution closely and will not be deceived by some Sterrad rep who calls TSO3 an upstart as they know Getinge is a huge player and well respected in the sterilization field. The VP4 fills perfectly a void in Getinge's NA and EU offerings. These are some of the reasons, obviously, why Rumble did the deal with them.
The claims that the FDA gave to TSO3 far exceeded my and management's expectations, as the parameters are very broad and straightforward, and include a whole host of scopes that others such as Steris and Sterrad (JnJ) cannot and will never be able to sterilize. JnJ has the cash and can bid very high for TSO3, as you know. 3M knows now what they lost a few years back by not representing TSO3 properly in the market and they also have very deep pockets. Steris is, in my opinion, a wild card and they might just want to grab a dominant market share. Getinge and Olympus, should the latter even be a player, are the ones who will have trouble putting up a final winning bid, IMHO, due to internal financial constraints and recent FDA problems.
I have gone over the blue sky for terminal sterilization of scopes in previous posts and the reclassification of scope procedures to critical procedures requiring sterilization, so won't repeat it. And, you can find reference to the staggering size of the potential market of 60-75 Million procedures per year (half being colonscopies that the VP4 can deal with!!) in TSO3's latest corporate presentation on their site. How many VP4 units does this imply will be needed in the field over the next 2 - 5 years? 10,000? 30,000? 60,000+? The addition of the 700,000 duodenoscopies per year is just icing on a very tasty cake.