Nanosonics Ltd (ASX: NAN) announced a pleasing piece of news this morning. The company said that trophon2 conforms with the European Union Requirements.
The trophon2 device is the second generation of the trophon system which prevents ultrasound probe cross-infection from occurring. Nanosonics boasts that the trophon device is easy to install, set-up and maintain, all it needs is to be plugged in.
Nanosonics now expects that trophon2 will be launched in Europe, the USA and Canada in the first quarter of the 2019 financial year. Its first-generation device has been popular with many thousands of devices being installed. It operates a "Gillette" model where the user buys the device and pays for high-margin consumables.
The CEO of Nanosonics, Michael Kavanagh, said "This is excellent news that enables Nanosonics to launch trophon2 for customers in both North America as well as Europe in the same time frame.
"The trophon2 delivers a range of exciting new customer focused features including new capabilities that were specifically developed based on feedback from the European market. The new trophon2 is currently being introduced into manufacturing and we look forward to bringing it to market in the first quarter of the 2019 financial year."
There are other products that Nanosonics is also researching and developing which could be launched over the next couple of years using the same sort of technology. These new devices could be just as big of an opportunity as trophon for Nanosonics.
Foolish takeaway
The products that Nansonics offers are excellent devices, but I find it hard to quantify what a reasonable valuation for the business would be. So for that reason, I am steering clear of Nanosonics shares. Although it could turn into a global healthcare leader in its space like Cochlear Limited (ASX: COH).
