MDM medical monitors limited

MEDICAL MONITORS

  1. 356 Posts.
    Can anyone tell us abit more about the placement thats mentioned in the latestMEDICAL MONITORS LIMITED 2002-04-29 ASX-SIGNAL-G

    HOMEX - Perth

    +++++++++++++++++++++++++
    Pursuant to Listing Rule 3.1, Medical Monitors Limited ("Medical
    Monitors") advises that the following information has been provided
    to Terrain Capital and Terrain Securities (jointly "Terrain") in
    connection with Terrain's assistance to the Medical Monitors with
    regard to a proposed 'private placement' for fully paid ordinary
    shares in the company. Information that has not previously been
    disclosed to the ASX includes sales forecasts and recent company
    operations update.

    KEY POINTS

    * Cash flow positive Qtr 3 2002
    * US operations poised for sales Qtr 2 2002
    * A Strategic joint venture alliances formed in UK and Europe

    COMPANY UPDATE

    * A Manufacturing contracts have been finalised with Bosch + Sohn and
    the first production run 4,000 BPfones have been completed. An
    additional 5,000 BPfones are being prepared for manufacture.

    * Prize winner in the UK National Health Scheme (NHS) sponsored
    prestigious 2002 Healthcare IT Effectiveness Awards for Best Use of
    IT in Primary Care. The award recognises excellence in healthcare
    information management.

    * Primary Care Group Ltd, the UK joint venture partner, has
    contracted with the Watford Primary Care Trust and AstraZeneca
    Pharmaceuticals, to provide the BPfone blood pressure monitoring
    system as a model for National Medicines Management Program. if
    successful, this model may be the basis for the management of blood
    pressure throughout the UK.

    OVERVIEW

    Medical Monitors' products and services have been developed over the
    past five years, and have now received worldwide acceptance in the
    health care market. In particular, the technology allows for
    patients, who may have a cardiovascular problem, to use Medical
    Monitors portable recording devices in an 'out of clinic' setting and
    transmit recorded ECG or blood pressure data over the telephone for
    analysis and report.

    In Australia, the company has sales revenue generated from the
    WELLness blood pressure monitoring service and the BPfone blood
    pressure monitors, in addition to the HEARTLINE monitoring service
    using the Portable ECG Recorder (PER) to monitor elusive heart rhythm
    (ECG).

    In the USA, Wellness Monitoring Inc, a wholly owned subsidiary of
    Medical Monitors, has established a service facility in California.
    Elsewhere, a number of trial blood pressure monitoring services have
    been established in Asia, Europe and the UK and will form the basis
    of new joint venture business opportunities in those regions.

    SERVICE COMMERCIALISATION - AUSTRALIA

    At present, sales effort is being focused in the pharmaceutical
    market where the BPfone TM is provided to GPs to assist in the
    management of their patients' blood pressure problems. It Is expected
    that 4,500 units will be sold in Australia in 2002. Each unit of sale
    includes at least one year's service. Initial supplies to the retail
    market are expected In 2003 via pharmacy outlets. Revenue from
    Australia is forecast to be $1.4m in 2002.

    Having successfully commercialised these services in Australia,
    Medical Monitors is now seeking to implement joint venture and
    distribution strategies to achieve significant penetration of the
    cardiac monitoring diagnostic market internationally, with emphasis
    on blood pressure monitoring.

    INTERNATIONAL BUSINESS

    USA

    Medical Monitors operates in three major market Sectors:

    RETAIL MARKET:

    In 2002 Medical Monitors plans to sell blood pressure units to the
    public through a home shopping channel, QVC, and major retail
    pharmacy chains. The Company views as conservative the projected
    sales volume of 5,625 units for 2002. Beyond the current year units
    will also be marketed through national retail chains.

    MANAGED CARE MARKET:

    This market involves the sales of unit-, to home health care
    management operators to monitor patients under their care, In 2002
    IVIDM expects to sell 550 units, with significant growth anticipated
    from this sector in 2003.

    PHARMACEUTICAL COMPANIES:

    The pharmaceutical companies distribute the units as promotional
    products to doctors whose patients are testing the company's drugs.
    The expected sales to this market for 2002 are 5,000 units. It is
    expected that the United States will be a strong generator of revenue
    in the near future.

    UNITED KINGDOM

    Medical Monitors has signed an MOU with the Primary Care Group, Plc,
    (PCG) and is finalising a 50-50 joint venture in the UK. The joint
    venture will provide the Wellness Monitoring Service (for blood
    pressure) with a number of monitoring program opportunities within
    the UK health system, as well as the pharmaceutical industry.

    PCG provides IT-based services in medical management to local health
    authority primary care trusts (PCTs), within the National Health
    system. The company has developed a number of management programs,
    aimed at improving health cost outcomes for the local PCTs in meeting
    their National Health Schemes budgetary targets, particularly in
    cardiovascular disease. Medical Monitors technology can provide the
    out-of-hospital monitoring interface for these programs.

    In 2002 MDM forecasts sales of 10,000 units to the joint venture at a
    transfer price, which provides a gross profit of $500,000. The joint
    venture markets and sells the units to customers, and provides the
    ongoing reporting service and technical support.

    Total profit contribution from UK in 2002 is forecast to be A$2.3m.

    EUROPE

    Medical Monitors has finalised a manufacturing agreement with Bosch +
    Sohn, the leading European manufacturer of blood pressure
    Instrumentation in Germany, to manufacture the BPfone product
    worldwide. Medical Monitors is also finalising an MOU with Bosch +
    Sohn for a joint venture to undertake the distribution and marketing
    of the Wellness Monitoring Service into Europe. Bosch + Sohn has
    specialised in quality blood pressure instrumentation, over the past
    35 years, and is the leading blood pressure monitoring product
    distributor in Europe.

    It is anticipated that sales will commence in the third quarter 2002.
    Sales revenue from Europe has not been factored into the accounts for
    2002 and 2003 as marketing plans and projects are not finalised.

    FINANCIALS

    Revenue forecasts are based on sales of 24,375 BPfone monitors and
    service in 2002 and 56,400 in 2003. The estimated revenue and profit
    forecast for 2002 and 2003 are as follows:

    YEAR ENDING 31 DECEMBER (A$M) 2002 2003

    Revenue
    USA 2.4 10.8
    Australia 1.4 3.3
    UK Contribution 2.3 3.4
    Total Revenue 6.1 17.5


    Product & Service Costs
    Manufacturing 1.4 4.2
    Australia 1.0 2.0
    USA 1.5 2.6
    Total Costs 3.9 8.8

    Operating Profit 2.2 8.7

    Administration expenses 1.2 2.7
    EBITDA 1.0 6.0

    Depreciation and Amortisation expense 1.1 1.2
    EBIT -0.1 4.8


    Interest expense - -
    Profit Before Tax -0.1 4.8

    Income Tax Expense (1) - -0.7
    Profit After Tax -0.2 4.1

    (1) Tax losses - A$2.5 million of tax losses were carried forward
    into 2002 financial year ("FY")

    Sensitivity Analysis - 10% increase in sales units will result in an
    increase in EDITDA for 2003 to approximately $7.3m, while 10%
    decrease in sales units will result in a reduction in EBITDA for 2003
    to approximately $4.7m.

    Dividend Policy - The Company is geared towards growth until the
    targets of market penetration are well advanced. The Directors intend
    to distribute dividends to shareholders when the financial
    performance of the Company is able to support the payment of
    dividends. However, the Directors do not guarantee any dividend
    payments.

    FUTURE GROWTH

    Total unit sales worldwide are expected to grow to 56,400 in 2003
    based on conservative projections for USA, UK and Australia. Based on
    this forecast pre-tax profit should increase to about $6.0m.

    Forecast cash flows for 2002 do not include revenues from proposed
    joint venture opportunities from Europe and Asia. Marketing plans and
    the joint venture partners are preparing cash flow projections. In
    particular, the business opportunity generated through the European
    joint venture Bosch + Sohn should prove to be sizeable given this
    company's market share.

    Beyond the current year 2002 considerable scope exists to expand into
    Europe and Asian markets in 2003.

    --------------------------------------------------------------------------------

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    report please.
 
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