Any sports fan that has ever turned on ESPN would recognize the name Dr. James Andrews. He’s internationally known for his accomplishments, not on the playing field, but rather his skills in the operating room. Dr. Andrews is one of the most recognized names in modern day sports with a patient list that reads like a "veritable who’s who of sports." Dr. Andrews has treated thousands of athletes in his almost 40-year career, not limited to more than 60 plus Hall of Famers, all-stars and up-and-comers.
Dr Andrews recently joined Medovex ($MDVX), which is trading at $3.70 with a $40M valuation. Shares quietly became public in 2014, raising $9 million. Dr. Andrews put together his team as the company’s co-founder and Board member, and is in his first role in a US-based public company. I am, however, a bit surprised to see that he remains in the background.
Andrews to Leverage Design Skills
Dr. Andrews and other top medical professional’s involvement will provide the company a “first look” at innovative medical technologies currently in development and can give investors a look at potential revenue-generating product lines. Andrew’s main business is his Andrews Sports Medicine business and during a recent interview with the company, I got a full download of the potential for revenue and margin in this field as technology lowers costs and enacts change. When I started digging in, I found some pretty cool stuff.
Keep in mind his surgery business does not fall under the revenue umbrella but it’s clear that he is utilizing a public company vehicle in the small-caps space to grab some market share. He does this by co-designing products intended to treat pain and repair damage to athletes and the everyman. I was impressed with the range of products the company focuses on and the potential margins and ease of implementation. I would like to be the sales guy who leads with this great pedigree, it’s clear the management team knows how to sell products into the channel and you like to hear this as a portfolio manager.
Recently, they announced an exclusive partnership with hospital bed supplier Hill-Rom® Corporation and their wholly owned subsidiary Trumpf Medical® for the sale of an IV product stand, which looks to simplify the current hassle of moving patients, and I did some channel checks on the size of this market and it is large. This will clearly be the “meat getter” product to come out of the pipeline where you can expect revenue. Medovex also has some other cool products that lower costs related to back ailments and surgery, which Andrews designed that will enter the revenue pipeline in the upcoming quarters. You can go take a look at some of the product line listed on the website.
Investing in small companies is often a bet on the “jockey” and Medovex has a unique management teamand board of directors for a company of its size, comprised of skilled surgeons, renowned physicians and experienced business executives who have had success with other public companies ($TGX), ($CYTR) and ($ENMD). Steve Gorlin has made money every step of the way and over the past 40 years, Mr. Gorlin has founded several biotechnology and pharmaceutical companies. So this isn’t the first go round for the team. His son Jarrett is the acting CEO, I had a chance to talk with the company and know an aptly funded plan when I hear one, which is why I reached out to them to learn more.
As I mentioned, shares are trading around $3.70 at last glance, and the entire company is valued at $40 million. I really like what I hear in terms of sales and revenue potential,and it seems some of the luster associated with these star athletes has rubbed off on the thinking of Medovex. Dr. Andrews is onboard a team who uses the same precision he uses in his craft. I would add this symbol to your watch list – this is a team of builders - with access to funding - in a growing marketplace - so take heed.