TMDX Update

I have previously posted regarding this company and I need to update regarding something I posted. I wrote extensively about their Perfusion Services segment and how I thought it would be disruptive in the industry. They reported earnings today and I listened to the call and what they are now planning for Perfusion Services is different than what they had previously stated. The company had previously indicated that they were going to have kind of a “full-service” organ collection and delivery service. They are now stating that they are going to have technicians that will go out with the existing hospital team and will only be responsible for managing the OCS devices. COVID really hurt them and delayed FDA reviews for their next products by about 6 months - so my assumption is that they are partially making this change in order to conserve cash (by not having to hire a bunch of surgeons for organ harvesting) until they get to a point that they have higher volumes. The company did not say that - it is only my speculation based on the situation they are in.

I still like the company long-term, and the stock is up around 20% from when I first mentioned it here, but I expect it to probably go down and be range bound for the next couple of quarters.

I don’t plan to write anything more about it here this year unless something dramatically changes.

28 Likes