Biotech Nanosonics Ltd (ASX: NAN) has the big aim of joining the likes of Cochlear Limited (ASX: COH) and Resmed Inc (ASX: RMD) as great Australian medical technology stocks.
In an update to the market today, Nanosonics reported full financial year sales of $21.5 million, up 44% over the prior year. That continues a great trend over the past three years, with revenues rising 21% in 2013 and 447% in 2012.
The company says it has $21.2 million in cash at the end of June, and received another $3 million in July relating to sales in the fourth quarter. Nanosonics chief executive officer Michael Kavanagh was upbeat about the result, "The strong results and growth momentum coupled with strengthening market fundamentals provide confidence in our goal of establishing trophon as a new standard of care."
Nanosonics sells Trophon, which is designed to achieve high-level disinfection of ultrasound probes more effectively than existing common methods such as topical sprays and disinfecting wipes. According to the company, Trophon systems are fast – taking just 7 minutes to disinfect probes, produces environmentally friendly by-products of water and oxygen, and is safe for users. When healthcare acquired infections kill more people in the US than breast cancer and prostate cancer combined – and 70% could be prevented with existing prevention measures – you know its a serious issue.
At a current market of just over $200 million, this could be the start of something very exciting. In May this year, GE Healthcare showcased Trophon at a conference of medical professionals. And the American Institute of Ultrasound in Medicine (AIUM) updated its guidelines and reinforced stricter controls for high-level disinfection during the quarter.
With growing awareness around the globe of the need for better disinfection solutions, Nanosonics appears to have several tailwinds behind it, which could propel sales and earnings much further.
Nanosonics is one company you might want to watch.
