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Quipt Home Medical Corp T.QIPT

Alternate Symbol(s):  QIPT

Quipt Home Medical Corp. is a home medical equipment provider. The Company specializes in improving the home management of chronic illness through the application of telehealth systems and automated distribution. It provides in-home monitoring and disease management services, including end-to-end respiratory solutions for patients in the United States. It offers nebulizers, oxygen concentrators, continuous positive airway pressure (CPAP) and Bilevel Positive Airway Pressure (BiPAP) units; traditional and non-traditional medical respiratory equipment and services, and non-invasive ventilation equipment, supplies, and services. The Company's product offerings include the management of several chronic disease states focusing on patients with heart or pulmonary disease, sleep disorders, reduced mobility, and other chronic health conditions. Its products and services consist of sleep apnea and pap treatment, home ventilation, daily and ambulatory aides, and respiratory equipment rental.


TSX:QIPT - Post by User

Post by lscfaon May 16, 2024 5:03pm
150 Views
Post# 36044328

Way to bury the lead in the CC. Idiot mgmt

Way to bury the lead in the CC. Idiot mgmt

 

 

Douglas Cooper

Okay. Okay Greg, just on the -- you talked about the diabetes opportunity or your initiative in the diabetes. Can you maybe just expand on that a little bit about this is an organic strategy. You're moving into the diabetes. What exactly -- are you going to be selling strips or what exactly you're going to be doing?

Greg Crawford

Yes, we're going to start providing in that the CGM and supplies in that to patients. We've already started in some territories and have had some positive results and we are in the process this quarter here of kind of rolling it out to the sales team across the entire organization.

Douglas Cooper

Okay. What do you think the impact would be this year from that initiative? And what kind of margin profile does diabetes, I'm assuming is a little bit lower margin profile than sleep.

Greg Crawford

Yes, absolutely. And that it's hard to put a number on it right now because we just don't know how successful we're going to be on the sales side. I think that's something we'll be able to speak to probably in the coming quarters and we'll talk about. As far as the margin in that, it's probably in the 15%, 16% range or so. But just remember, there's no CapEx or anything with that. And then it's a lot of drop-ship.

Douglas Cooper

So the 15% to 16% gross margin that would basically fall unencumbered to EBITDA what I'm hearing kind of [indiscernible].

Greg Crawford

Correct. Yes.

Douglas Cooper

Okay. And so you have relationships with suppliers now and so forth. So there's no real CapEx involved to get into this business, right? And is there any acquisition opportunities in this?

Greg Crawford

Yes, there could be. Those are things historically that we've passed on in the past in that. But just based off the early results that we're kind of seeing for the demand just went within our own patient ecosystem and that looks pretty positive trend and that going into the back half of the calendar year.

Douglas Cooper

Okay. I'll say pretty competitive market. I would think it's a well-established market, the GLP-1 which is obviously designed specifically for diabetes in the first place. What impact is that having on the diabetes market?

Greg Crawford

Yes. I mean right now, we are just focused on our internal patients and then kind of selling into our current networks. We don't have any information as it relates in that or any experience, I should say, as it relates to the GLP-1s and what it's doing to the CGM market. We just know that -- we get a lot of requests in that for the CGM supplies within our current system. And then we also started receiving a lot of referrals. I think that kind of prompted us in that to kind of enter that market.

Hardik Mehta

I think Doug, for us it is really ground zero, right? So we don't really get -- it's not like we have an existing base and the GLP-1 is taking away from it. I think for us, it's really growing into an untapped cross-selling opportunity with our existing patient company.

Douglas Cooper

Right. But just to be clear, I'm assuming these patients are getting their supply somewhere else right now, but maybe it's just an ease of use to get them from a 1 stock provider?

Greg Crawford

That's part of it. Yes. Yes, yes. But we're also receiving new referrals. Yes.

Douglas Cooper

From fresh diagnosis, for example.

Greg Crawford

Yes. Yes. Yes. Brand new patients.

Douglas Cooper

Got, it. Okay. Great thanks very much gents.

 

Operator

The next question comes from Bill Sutherland with The Benchmark Company. Please go ahead.

Bill Sutherland

Thank you. Hey Greg or Hardik. I was kind of interested in your initiatives, Greg, to pick up the organic growth a bit? As you pointed out the cross-sell with diabetes and expanding markets. I wonder if you could provide color there and maybe plans with the sales force?

Greg Crawford

Yes, sure. And that's on the diabetes side, that we started kind of testing in that in fiscal '23, certain markets in that to see how well we could do with the CGM because that's where the demand was coming. So the early signs in that have looked pretty good for us. So now we're in the process of expanding that around the rest of the company. As far as the rest of the sales team in that, I mean, we continue to add to our sales team and expect that to continue throughout the year.

And that's what's kind of driving a lot of the growth in that, that we are seeing on the organic side as been into either new continuum areas or also supplementing that in certain regions and that where they potentially don't have clinical coverage in that. So we might have somebody selling just basic home medical equipment. But not selling the clinical respiratory such as our events and our percussion vest and other related items.

Bill Sutherland

Okay. Is there -- I'm sure you have ongoing negotiations or discussions with national payers all the time. Is there anything kind of you think reaching some sort of conclusion for you?

Greg Crawford

Nothing imminent at this point.

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