Originally Posted by
MAC
There’s a big picture view too;
It's a top down approach, PEB have told us thus in there presentations, first the network providers must be on board, then the HMO's and insurers associated with those network providers, then some academic and procedural policy support from the LUG's, then sales folk making direct approaches to urologist practices, and then GP approaches.
This whole process has 12 to 24 months written on it to me, and we are only 7 months or so into it
The commercials and pricing contracts must be in place first, there is no point banging on a urologists door just to hear the same thing over again "great tech, absolutely want to use it, but my patients can't yet claim for it, but they can claim for cytology and/or NMP22".
A few weeks back I went to the dentist for an extraction, needed a filling too while I was about it, the dentist suggested amalgam rather than a composite filling as the insurers don't cover composite. And, they were right, my insurer didn’t cover it, $405 thanks very much.
Once the insurers start to demand their one third reduction in work up costs, and urologists can use cxbladder knowing patient costs are covered, or mostly covered, this is the time PEB sales will take off in earnest.
It’s negotiation stage right now and will be for a few months, all negotiations seem to be running in parallel at present, Medicare, HMO’s, insurers, and user programme roll overs. These contracts may well start to come to fruition all at a similar time also.
In this context, from a long term investors perspective, noting traders see matters differently, sales figures at this early stage are relatively unimportant in the big picture.
It’s the strategic roll sequence and schedule that is important. I’m focused more on this for now as an investor, and there is some evidence of a slide which I’m watching, I’m not overly concerned just yet, but I would like some more information.
Looking forward to the AGM now, question time will be interesting.