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Covalon Technologies Ltd V.COV

Alternate Symbol(s):  CVALF

Covalon Technologies Ltd. is a Canada-based patient-driven medical device company that provides healthcare solutions for advanced wound care, infection control, and medical device coatings. The Company's solutions are designed for patients and made for care providers. The Company 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. The Company has three proprietary platform technologies that have the potential to be developed into a number of medical devices and products: Collagen matrix, Antimicrobial silicone adhesive and Medical coatings. Its product type includes advanced wound care, antimicrobial dressings, collagen dressings, IV dressings, and perioperative dressings. Its brands include ColActive PLUS, CovaClear, CovaView, CovaWound, IV Clear, SurgiClear, and VALGuard.


TSXV:COV - Post by User

Bullboard Posts
Post by zenvestingon Apr 02, 2018 9:57am
145 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