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What is $TMDX?
TransMedic Group Inc., or $TMDX is an Organ Transplantation device company. Their system is called Organ Care System (OCS), and $TMDX has 3 main products: OCS Lung, OCS Heart & OCS Liver. Currently, only OCS Lung got FDA approval, the rest is still pending.
TransMedic Group Inc., or $TMDX is an Organ Transplantation device company. Their system is called Organ Care System (OCS), and $TMDX has 3 main products: OCS Lung, OCS Heart & OCS Liver. Currently, only OCS Lung got FDA approval, the rest is still pending.
2/ Problems:
Current organ transplants utilize old technology (cold storage - picnic box with ice inside). The organs wouldn’t last long, couldn’t travel far, resulting in (1) severe under-utilization of available organs (only 20-30%) (2) 30%+ have post-transplant complication.
Current organ transplants utilize old technology (cold storage - picnic box with ice inside). The organs wouldn’t last long, couldn’t travel far, resulting in (1) severe under-utilization of available organs (only 20-30%) (2) 30%+ have post-transplant complication.
3/ Solutions:
$TMDX’s OCS significantly improve how long the organs last, organ utilization increases significantly & post-transplant complications drop to only 10-14%.
$TMDX’s OCS significantly improve how long the organs last, organ utilization increases significantly & post-transplant complications drop to only 10-14%.
4/ Business Model:
$TMDX revenue is highly recurring. Firstly, the OCS system set is either sold or loaned to a transplant program. Then, $TMDX generates recurring revenue from their single-use OCS disposable set.
$TMDX revenue is highly recurring. Firstly, the OCS system set is either sold or loaned to a transplant program. Then, $TMDX generates recurring revenue from their single-use OCS disposable set.
$TMDX’s customers are highly concentrated. The top 2 customers account for 24% of total revenue in 2020. This is normal because of the ultra-concentrated nature of the US Organ Transplant industry.
5/ TAM:
$TMDX mentioned in their Annual Report that the Organ Transplant has a TAM of $8 billion in its key market (US, Canada, EU, Australia).
The breakdown is as follow:
$TMDX mentioned in their Annual Report that the Organ Transplant has a TAM of $8 billion in its key market (US, Canada, EU, Australia).
The breakdown is as follow:
Lungs TAM:
Only 4,800 donor lungs are utilized, out of the 67,000 annual donors. $TMDX estimated that OCS Lung has a TAM of $2.5 billion.
Only 4,800 donor lungs are utilized, out of the 67,000 annual donors. $TMDX estimated that OCS Lung has a TAM of $2.5 billion.
Heart TAM:
Only 5,800 donor hearts from 67,000 donors are utilized. $TMDX estimates that the OCS Heart has a TAM of $2.47 billion.
Only 5,800 donor hearts from 67,000 donors are utilized. $TMDX estimates that the OCS Heart has a TAM of $2.47 billion.
Liver TAM:
Only 16,700 donor hearts from 67,000 donors are utilized. $TMDX estimates that the OCS Liver has a TAM of $3 billion.
Only 16,700 donor hearts from 67,000 donors are utilized. $TMDX estimates that the OCS Liver has a TAM of $3 billion.
6/ Scale of Business:
In 2020, $TMDX generates a revenue of $25 million, with a net loss of (-$28 million).
$TMDX was valued at $545 million at the end of 2020.
In 2020, $TMDX generates a revenue of $25 million, with a net loss of (-$28 million).
$TMDX was valued at $545 million at the end of 2020.
7/ Past growth:
$TMDX grows its revenue from $13 million (2018) to $25 million (2020) at CAGR of 38.7%.
$TMDX grows its revenue from $13 million (2018) to $25 million (2020) at CAGR of 38.7%.
8/ Interesting news:
In April 2021, FDA Advisory Committee voted in favor of OCS Hearts.
News: https://www.prnewswire.com/news-releases/transmedics-announces-positive-fda-advisory-committee-vote-for-ocs-heart-system-301263643.html">https://www.prnewswire.com/news-rele...
In April 2021, FDA Advisory Committee voted in favor of OCS Hearts.
News: https://www.prnewswire.com/news-releases/transmedics-announces-positive-fda-advisory-committee-vote-for-ocs-heart-system-301263643.html">https://www.prnewswire.com/news-rele...
Do you think $TMDX can 5x its revenue in the next 5 year?
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