Impedimed boosts sales, yet loses sheen
ONCE a Qld market darling, why is medical device maker Impedimed’s sheen dulling with investors?
QLD Business
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IMPEDIMED has lifted sales for its device that measures body fluids, but the former market darling cannot find love from investors.
Stock in Impedimed, which started in Brisbane but now is based in the US, fell another 5.5c to 76.5c on Friday after releasing financial results. The company’s shares have yo-yoed from 4c in 2013 to $1.82 in August last year.
Analyst suspect the recent fall might be linked to slow sales in the critical US market and concern about when trial data will be released.
Impedimed’s L-Dex device measures changes in body fluid, useful in early detection of a painful swelling ailment linked to cancer. It is also working on heart-problems.
The latest accounts show an $11.7 million loss for the half year, deeper than the $9.7 million a year earlier.
Revenues lifted from $2.7 million to $3.1 million, while expenses such as salaries also rose as staff numbers hit 78. Impedimed chief executive Rick Carreon was unavailable for interview, but the company highlighted progress including signing up 72 accounts at cancer centres for its L-Dex device. That was above a target of 50.
It is also developing a new generation Sozo device, aimed at home or doctor practices.
But analysts at Bioshares, who have a “speculative buy” recommendation, recently wrote sales linked to the crucial lymphedema-ailment market had fallen between the December and September quarter, indicating a “slow take up of sales”.
Bioshares also said there had been expectations of initial data from an 1100 patient trial coming early in 2017 but this might now come in the second half.
Impedimed said the trial should be fully enrolled with patients by calendar 2017’s end. That is off initial guidance in 2014 of enrolment concluding by mid-2016.
Earlier this month, Brisbane-based wound-healing outfit Factor Therapeutics posted a $1.4 million loss. It highlighted among achievements the start of middle-stage trials of its treatment on leg ulcers.
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