GCIBelluscura Expands its Oxygen Enrichment Patent Portfolio
Intellectual property and patents are the lifeblood of the healthcare industry. Providing companies with long term protection against competitors copying their technology.
Better still, the deeper & more valuable the IPR, the greater the chances of pioneering portable oxygen concentrator firm becoming a £1bn+ mrkcap Unicorn.
Today BELL said that it had successfully been granted 3 more US patents, increasing the treasure trove to 30.
This time covering Extracorporeal Membrane Oxygenation (eg for heart/lung patients on life-support), Continuous Positive Airway Pressure (used say for sleep apnea) and Replaceable Molecular Sieve Technology (re oxygen enrichment from air).
Whilst also providing further scientific confirmation of the quality of Belluscura ’s innovative medical devices.
CEO Bob Rauker adding: "Our pioneering engineering team continues to develop next generation oxygen enrichment technology along with our research partner, Separation Design Group. We see significant expanding future opportunities in the supplemental oxygen field."
In terms of the numbers, house broker Dowgate are forecasting BELL will be cashflow positive by 2024 and deliver upgraded 2025 adjusted EPS of 28.5c on revenues of $140.6m.
As such, I would value the business on a 2025 15x EV/EBIT multiple, which - discounting back at 12% and adjusting for $9.3m (Dec'22) of net cash - generates a theoretical valuation of >$410m, or 240p per fully diluted share (135m). In comparison Dowgate have a 200p target price vs 180p B4.
Plus, with many of BELL's larger rivals either selling technically inferior products &/or struggling with acute supply chain issues, then there’s an enormous runway ahead
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.