EMS - Eastland Medical Systems

[zombie_ninja]

Hi guys,

EMS has a high P/E of 650.

Is this normal and what could be contributing to this high P/E?


Still a newbie, that's why I asked. So I apologize if this is a dumb question.

 

[Sean K]

Hi guys,

EMS has a high P/E of 650.

Is this normal and what could be contributing to this high P/E?

Still a newbie, that's why I asked. So I apologize if this is a dumb question.

Because its share price is much much higher than most, compared to it's earnings. Most 'growth' companys and explorers who do not earn much money have high pe's. Some can't have one because they don't earn anything! EMS must be making some money - maybe from selling property, earning interest, or selling bandaids??

 

[zombie_ninja]

Because its share price is much much higher than most, compared to it's earnings. Most 'growth' companys and explorers who do not earn much money have high pe's. Some can't have one because they don't earn anything! EMS must be making some money - maybe from selling property, earning interest, or selling bandaids??

Well, considering the announcements that EMS has made in the past few days (i.e., new sales orders, etc). Shouldn't the P/E be lower, especially that it is a projected P/E ratio from Comsec rather than a trailing P/E ratio. So they should have included the future revenues from these new sales orders.

Again, I might be totally wrong here.

 

[ducati916]

Because its share price is much much higher than most, compared to it's earnings. Most 'growth' companys and explorers who do not earn much money have high pe's. Some can't have one because they don't earn anything! EMS must be making some money - maybe from selling property, earning interest, or selling bandaids??

kennas

No, afraid not, another lemon that has only lost money.
Another pure speculative play, high risk......this sort of junk will lose 90%+ in a bear market.

I'll do the numbers probably sometime tomorrow.
jog on
d998

 

[banjo_pete]

Article in bioshare mag

Eastland fighting malaria in children

Kayt Davies
Thursday, 21 December 2006

PERTH-based small market cap biotech company Eastland Medical Systems has made a quiet but dramatic entrance onto the global malaria stage, announcing the signing of an exclusive distribution agreement for a new anti-malaria treatment for Sub-Saharan Africa.

The new treatment involves a novel mode of delivery for an already-approved drug that the company says will be ready for sale in six months.

With confidentiality clauses cloaking much of the deal in secrecy and negotiations for other related agreements still in progress, Eastland executive director Doug Sims says the market will have to be patient, and wait for more details and news.

In the meantime though, he said the new treatment was exciting because it worked faster and more consistently than tablet delivery, which sometimes ran into problems with patients suffering malnutrition – common in the developing world – and diarrhoea, a common malaria symptom.

The new treatment will initially be developed for use with children, although Sims said it would also work at higher doses with adults and that another upside of it was that it could be administered to sleeping or unconscious patients.

He said this was an important feature because malaria resulted in brain swelling that, prior to killing its victims, was associated with loss of consciousness.

The agreement announced to the ASX yesterday was signed by Eastland's 65%-owned subsidiary, Eastland Medical Systems South Africa (EMSSA), and Star Medical-Botswana, and it will entitle EMSSA to distribute the new treatment to the 47 countries within Sub-Saharan Africa.

The new treatment uses artemisinin, the main drug currently used to fight malaria, meaning that approval processes will be faster than if a new drug was involved. Sims said some official trials would be required and that negotiations with South African authorities were underway about the protocols for these trials with an eye to having the drug ready for market by mid-2007.

He said a recent preliminary trial conducted at a Nigerian hospital had found the new treatment to be effective in reducing malaria symptoms in all of the patients treated.

Eastland chief executive Dermot Patterson said: "An additional advantage of the new treatment is the reduced need for continued hospitalisation, which will result in significant cost savings to governments and relief organisations."

He added that the agreement would help Eastland to build contacts in Africa and assist the marketing of its ClipOn device that converts standard syringes into safe, retractable needle injection and blood drawing devices.

Putting a dollar value on this week's announcement Patterson said that subject to regulatory approvals, Eastland estimates revenues of 200 million rand ($A36.5 million) in the second year of distribution growing to 400 million rand ($A72.9 million) by year four.

 

[banjo_pete]

News out of the uk, brings to a total of 5 new acquisitions in the last year!

Company International Medical Devices PLC
TIDM INT
Headline Acquisition
Released 15:06 21-Dec-06
Number 4797O

International Medical Devices PLC
(“IMD” or “the Company”)
Acquisition of ProCare Limited and Minster Medical Limited
And
Company Refinancing through Allied Irish Banks plc

International Medical Devices Plc (AIM: INT), the fast-growing medical supply company targeting the medical consumables, cardiorespiratory, acute and aged care markets, announces two acquisitions in line with the Company’s strategy to grow through acquisition of companies which have the prospect of delivering high returns and significant capital growth.

Highlights

• Company refinancing with £3.955 million term loan facility by Allied Irish Banks to fund two acquisitions

• Acquisition of ProCare Limited for £3 million on completion

• Acquisition of Minster Medical Limited for £520,000 on completion

• To 31/08/06 the two acquired companies had a combined turnover of £4 million

• ProCare Ltd is a leading supplier to the NHS and private healthcare sector of enteral feeding suction systems

• Acquisition of ProCare Ltd adds Original Equipment Manufacturing (“OEM”) infrastructure to the Company

• IMD continues to strengthen its senior management team with the addition of Guy Mills and John Birtwistle

IMD announces it has entered into an unconditional agreement to acquire the entire issued share capital of ProCare Limited (“ProCare”). The total consideration for this acquisition is £4 million payable in tranches as follows:

£2 million in cash on completion

£1 million payable in shares issued at 7 pence per share (14,285,714 shares)

An earn-out of £1 million payable in shares over a period of 3 years dependent on the achievement of predetermined targets for profit before tax in the 3 financial years ending 31/08/07, 31/08/08, 31/08/09. These three years target profits equate to £1.85 million of future profits.

In addition, IMD has entered into an unconditional agreement to acquire the entire issued share capital of Minster Medical Limited (“Minster Medical”). The total consideration for this acquisition is £760,000 payable as follows:

£270,000 in cash on completion

£250,000 payable in shares issued at 7 pence per share (3,571,428 shares)

An earn out of £240,000 payable in shares over a period of 3 years dependent on the achievement of predetermined targets for profit before tax in the three financial years ending 31/08/07, 31/08/08, 31/08/09. These three years target profits equate to £350,000 of future profits.

In order to satisfy the cash element of the consideration, the Company has refinanced its debt facilities with Allied Irish Banks. The facility comprises a term loan of £3.955 million plus a flexible book debt facility of up to £4 million. Regarding the equity component of the transaction, application has been made for the total of 17,857,142 new ordinary shares to be admitted to AIM and it is expected that admission will take place on 29th December 2006.

Commenting on the acquisitions, CEO Chris Thomas stated, “We are extremely pleased to be entering into the new year with not one but two new acquisitions that complement our existing portfolio, particularly the suction catheter market. We look forward to reporting headway from the new acquisitions in the new year.”

ENDS

International Medical Devices
Chris Thomas
CEO
+44 203 008 4960

Corporate Synergy
Ian Rice
+44 117 933 0020

Parkgreen Communications
Victoria Thomas
+44 207 851 7480

Notes to Editors

About IMD
International Medical Devices Plc was admitted to AIM in November 2004 with the purpose of acquiring companies or businesses operating in the health and medical devices sector which have the prospect of delivering high returns and significant capital growth.

Since September 2005, IMD has made three acquisitions that, in its audited 2006 financial statements, gave the IMD group a pro forma turnover of in excess of £10million.

www.imd-plc.com

ProCare

ProCare, based in Selby has a medical/surgical portfolio covering five sectors in single-use disposables, including enteral feeding suction systems including catheters, cryo-surgery, pain/IV and oxygen therapy. It’s key distribution agreements are with AMT, Serres, Go Medical, Spembly, and Salter labs. In its last filed statutory accounts to 31st March 2006, ProCare achieved sales of £3.3 million (£2.7 million, 2005) generating profits before tax of £363,000. As at 31st March 2006, ProCare had net assets of £1.08 million including cash of £399,000.

ProCare employs 22 people and is an efficient, profitable sales organisation. The sales force plus the two directors, Guy Mills and John Birtwistle, totals 12 and provides nationwide sales coverage.

Product segments are dominated by 2 product groups:

1) GI enteral feeding buttons and tubes
2) Suction canisters, liners and accessories for collecting body fluids from surgical procedures and post surgery wound drainage.

ProCare customers are NHS hospitals, private hospitals such as BMI and independent wholesalers/distributors who serve regional markets like nursing homes, GP surgeries and direct-to-home customers.

Minster Medical

Minster Medical, also based in Selby, is a niche company with speciality products primarily in suction catheters, supplying both open and closed types. The acquisition is a natural fit for International Medical Devices Plc who is already present in the suction catheter market. Minster Medical has developed its own IP with its ‘Tender Tip’ brand manufactured by an OEM supplier, and recently won a £60,000 contract in Sheffield. In its last filed statutory accounts to 31st July 2005, Minster Medical achieved sales of £405,000 (£355,000 – 2004) generating profits before tax of £11,000. As at 31st July 2005, Minster Medical had net assets of £20,600.

 

[ducati916]

This stock has made zero money.
All it does is destroy value.

• Company refinancing with £3.955 million term loan facility by Allied Irish Banks to fund two acquisitions

Exactly.
Jog on
d998

 

[banjo_pete]

EMS will be well set after more information comes out re ant maleria and nhs contracts, ems currently cash flow+, very little risk at these levels!

 

[banjo_pete]

NEWS will start to flow I have been told. You think the 80 million malaria contract was big, wait till you hear what they are planning next. I'm going all in on ems. good luck

 

[banjo_pete]

Late buying today! News tommorrow maybe, its all taking shape.

 

[Joe Blow]

NEWS will start to flow I have been told. You think the 80 million malaria contract was big, wait till you hear what they are planning next. I'm going all in on ems.

Pete, these are the sort of posts I am looking to get rid of at ASF. You are going to be a lot more specific and a lot less reliant on second hand information.

Who told you news will 'start to flow'?
What can you tell us about this bigger than $80 million deal/contract that you imply EMS have on the cards?

A little less ramp and a little more substance please.

 

[banjo_pete]

Great start to the day ems up late yesterday with late buying and today the same thing!

 

[banjo_pete]

Anyone seen ems 1/2 yearly?! Ppl are saying they are going to make a 3.75 million profit this year! If its the case watch out!

 

[banjo_pete]

Great article! EMS revenues to = 6.5 million in this last half. Big news to flow!!

http://www.biotechnologynews.net/storyview.asp?storyid=95362 §ionsource=s0&highlight=eastland

Eastland expecting a good year

Kayt Davies
Thursday, 8 March 2007

One of the most frustrating aspects of life as a listed biotech developer is the need to stay quiet at times when it's tempting to speak. Eastland Medical was in this position last week while the BBC and ABC were running stories about a new malaria pill for children developed by a Paris-based company.

Dermot Patterson

Eastland Medical chief executive Dermot Patterson said: "It would have been great if we could have spoken out then with full details about the malaria treatment we are working on, but it's all about timing. We are hoping to be able to release more information soon and when we do we hope to get that kind of international media attention."

Eastland has secured manufacturing and distribution rights for the new UK-developed malaria treatment for the 54 countries in Africa and Asia, India and the Pacific region.

Looking at the upside, he said the BBC and ABC reports focussed attention on the severity of the problem, especially in children.

He described the Paris pill as an extension of current treatments that are basically a coktail of drugs delivered in tablet form - albeit one that reduces the number of tablets required.

The key difference between this treatment and Eastland's is that Eastland's is not a tablet, and therefore it doesn't need to be swallowed, which means the patient doesn't have to be awake. This is important because severe malaria induces a sleep state in patients.

The Eastland treatment overcomes problems assoicated with patients suffering from diorrhia, malnutrition and digestive disorders, all of which are key problems with tablet treatments.

Eastland's product is currently in a phase 1 safety trial and according to Patterson, once that is completed Eastland will be able to fast track release of a limited amount of the product on to the market.

He said: "The product we release this year will be manufactured by the inventors in the UK and it will only have a six month shelf life.

"We will at that stage be starting a phase three clinical trial that will enable us to create a product with a two year shelf life but our preliminary conversations with various ministries of health in Africa indicate that they would be very happy to have the six month self life product as soon as possible because it would allow them to start immediate treatment of children especially under two years of age, the patient group most in need.

"That means we are expecting to have limited product in the market by the end of 2007."

That in turn means that none of the anticipated revenue from the malaria treatment was factored into Eastland's recently issued update on its performance in the current financial year.

In its half yearly report lodged in late February, the company forecast of $11 million in revenues for the full year along with a drop in operational costs of 16%.

It had only clocked $4.5 million by the end of December, leaving $6.5 million to come from curent operations in the next few months, with the malaria revenues set to boost earning in the following financial year.

 

[banjo_pete]

Any comments on this article????

 

[nat]

Yeh I take it all with a grain of salt, only reason I still have any ems is to remind me of no plans, no stops, and getting excited on articles leads to disapointment. I look at the chart sometimes hoping for a miracle, who knows maybe one day, till then its a great reminder which has saved me more then I lost over time.Nathan

 

[TheRage]

Well, considering the announcements that EMS has made in the past few days (i.e., new sales orders, etc). Shouldn't the P/E be lower, especially that it is a projected P/E ratio from Comsec rather than a trailing P/E ratio. So they should have included the future revenues from these new sales orders.

Again, I might be totally wrong here.

Projected PE ratio's are simply a business analysts forecast on Earnings and in some cases the company's forecast. Projected PE's are not always updated regularly. However the high projected PE might also be due not to a lack of revenue but could be bucket load of shares recently put on offer. Either way I have not looked into this stock so I really couldn't tell you. However what I can tell you is that forecasted earnings by analysts are not always right and infact more often wrong on start up companies with such variability in revenue. Personally for this reason alone I leave a lot of the penny dreadfuls alone purely because I have so much trouble trying to calculate or forecast earnings. At the end of the day speculation can only drive a share price so high and then eventually earnings will be required to justify it's price, especially as Ducati said above in a corrective market.

 

[Sprinter79]

Positive ann regarding their smoking replacement product this arvo to follow up recent sp gains, but has resulted in sp falls with reasonable volume.

Entry of new product is expected in first half of 2008

 

[Bushman]

Any ideas what has caused this stock to shoot up to 25c today - was 14c last Friday?

Been on my watch list as they seem to have a new treatment for malaria which would be a massive market given it is the scourge of much of the tropical world. Also retractable needles and an anti smoking JV with a German company. Fairly shambolic website I thought but these seem to be the 3 main projects.

Company just issued an ann to ASX query basically stating that the market has finally woken up to EMS.

 

[scaffy]

Well, hopefully we start to see this stock stop going up and up, rather than fluctuating between 14 and 17c. I noticed that in the West Australian paper the brokers have considered this company a strong buy.