|Good News for Medical Device Marketer, YesDTC|
|Thursday, 05 August 2010 00:00|
Today, YesDTC Holdings is out with a press release indicating that the Japanese regulator has assigned a Class II designation to the products. This is good news as it likely means that no clinical studies will be required before marketing in Japan can begin. We had theorized that the Japanese regulator would impose the same designation on these products that is currently in place within the European Union and it appears our opinion was directly on target. Not only does this designation mean that clinical trials are probably not necessary, it allows YesDTC to immediately sign contracts with Japanese medical device companies that are currently licensed throughout the country. Again, this could easily result in a rapidly developing revenue stream for the company, one of the reasons listed for our initial interest in the firm.
While we lost faith in BIEL some time ago, we actually like what we are seeing at YesDTC as the management team has moved very quickly to develop some major revenue producing initiatives. YESD has already acquired the most important of the marketing rights for North America for a next-generation personal medical alarm, called MediPendant, which is manufactured by a small company called Medical Alarm Concepts. MediPendant makes a significant technological leap over the other products that are currently available within this category. As many of you know, the current market leader in this space is Life Alert, which reportedly generates tens of millions of dollars in revenue per month. Life Alert is the company that brought us “I've fallen and I can't get up,” but that technology, does not allow for two-way communication through the neck worn pendant. The MediPendant product is a significant advancement in that the user simply pushes a button on the pendant and then is able to communicate in a two-way manner with an EMT- trained operator. MediPendant officials recently announced that they had reached an agreement with their debt holders to convert debt into equity and they selected YesDTC to rep the device via direct response infomercials (they have already begun production for those TV spots). This product could also provide a nice revenue stream for YESD, without the overhead of development and manufacturing costs.
Speaking of infomercials, we love the fact that the creative talents of Schulberg Media Works- considered a leader in the infomercial industry- has been combined with the experienced financing capabilities of the YesDTC management team in order to not only create, but also fund these direct-to-consumer marketing programs.
Our research indicates that these products are only the beginning for the company as it appears YESD officials are getting ready to acquire other innovative medical device products in the verye short term. Investors should expect news shortly in regards to these new initiatives. Put this micro-cap play on your radar screen as market capitalization is very low relative to the significant opportunities. This is a developing story we plan to continue watching closely.
Disclosure: No Positions