jollyfo
2023-06-09

Just saw the new quarterly financial report out today. Revenue dropped to $9k for the quarter! They describe this as due to a decrease in the number of doctors ordering scans not a price drop. Net loss almost doubled from half a mil to about a mil. I hope management are calling GE, Siemens, Philips, Canon etc today. They can't go it alone and Nuvasive are 100% the wrong partner! (Biggest value for this tech is in identifying patients that shouldn't have surgery to save insurers money, but nuvasive make their revenue by patients proceeding to surgery, terrible alignment of outcomes). Here's what I think would turn this company around: - Strategic partnership with an MRI vendor (GE, Siemens etc) to bundle with hardware - Strategic partnership with a big insurer (anthem, humana etc) to integrate into prior auth requirements - Stopping this ridiculous B2C strategy from a small business - A planned pathway to practice-setting body endorsement (either NASS guideline, recommendation from AO Knowledge Forum, NICE, or maybe eurospine) - Shoring up post 2024 reg strategy. Need to try and increase value with view to exit, more proof-of-need/acceptability and less proof-of-delivery/logistics. There's no way they scale this as an organization without either a takeover or a strategic partnership so tight it's basically a merger, at least IMHO. The tech has value, but management need to be honest with themselves if they're going to unlock it. $ACLARION, INC(ACON)$

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