Viveve Medical ($VIVMF) is chock full of salesmen who are boots on the ground ready to attack a growing market. I had a chance to speak with CFO Scott Durbin, but had to catch him on a Saturday as he was heading out to South America.
I explained that I talk with C-Suite guys and am often exposed to the harried nature of US emerging growth stories, and they all say the same thing, "my life is not my own" which means they are so busy there are not enough hours in the day.
This is the way it is now for Viveve and its CFO. Say goodbye to the beach weekends, golf or reading the NY Times cover to cover. It's now all about sales, investors and managing the global sales effort.
Fortunately for all, the key metric to watch for Viveve is simple and it breaks down to how may consoles Jim Atkinson puts in the hands of his customers. It will be a really simple story to follow. I love simple stories.
Most do not know that this effort is a reboot of a sales story performed by the current sales team. They have done this before. I suspect this is why the previous round was oversubscribed. It also explains why the valuation is where it is without guidance. Investors in the know can already extrapolate the sales numbers and how they work, and my discussion with Scott revealed a great product margin mix and as I said, very simple metrics. But Durbin was careful not to talk about guidance this early. To me that is a sneaky good sign.
In a recent 10-Q filing they talk about what they are doing, and what they need to do, and I always suggest investors get better at reading these documents. They are a lifesaver! I am interested in - and would ask questions about - the margins related to the replaceable tips, because that will be the 'point of the arrow" when looking at Viveve, and all you need to do is watch that number each quarter.
Again, I love simple!!! I never studied very hard in college...I just paid attention.
This story came my way because Stern Agee CRT is a friend of our company and we noticed they were part of the $6m raise per this announcement. Viveve plans to use the net proceeds from the offering to support the commercial launch of the Viveve system in the 46 countries where it is now available through select distributors. "This financing strengthens our balance sheet and will continue to support the commercial launch of the Viveve system in the regions where we have regulatory approvals," said Patricia Scheller, Chief Executive Officer of Viveve.
Do a little research on what Viveve does by clicking here. I can tell you that as an investor I am enamored with unique leadership. I enjoy meeting female CEO's...they are insightful and energetic, I have not yet met with Patricia, but look forward to it.
I can tell you a few things…
I like a $7B global market place, a simple console to sell which has about 50% margins, and a $2B market in US sales alone (where selling would be direct) projected once you get FDA approval in 2017, I also like the predecessor of this sales strategywas purchased by Valeant ($VRX) .
I also like that the Technology is based on proven science with strong clinical data behind it and
Jim Atkinson’s predecessor company was bought by for $600M last year. The company is now covering 46 countries worldwide through distributors and their sales force.
This story gets better and better. Stay tuned as this parallel product line which originated in dermatology allows you grasp how the revenue run rate will work and further allows you to view the current valuation from a different angle. Unique consumer stocks like these are recession proof mainstays once they get the model working, and pedigree and funding give Viveve an interesting path upcoming for 2016.
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