GREY:TSTIF - Post by User
Comment by
hipfneron Jan 28, 2018 9:58am
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Post# 27449373
RE:Next quarter
RE:Next quarterI'll repeat my points from the occasional post over the years.
While we didn't have the text of the agreement, on the surface it was an ironclad worldwide exclusive. I doubted that thesis and said that any professional would have cancelation clauses triggered on non-performance by either party on clear measurable milestones.
Obviously that was true and now TSO3 is taking more control of N.A. sales and Getinge will take a serious hit on their purchased inventory as a result. Equally, TSO3 will have to spend more on sales expenses to get in the doors of the purchasing managers and tell the story. Thus, we can expect a pause / levelling in sales and higher G&A for 2017.
Offsetting that is the superiority of the product and regulatory successes with the FDA. More hospitals are taking notice and will be compelled to buy the sterilizer just to avoid the deaths and lawsuits. It's just good risk management. Those could be material and of very little cost to TSO3.
I'm prepared for a soft 2018. But the catalysts are there for a great year.