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    Jason Napodano

    Research Analyst at Zacks Investment Research

    Jason Napodano's questions to Nuo Therapeutics (AURX) leadership

    Jason Napodano's questions to Nuo Therapeutics (AURX) leadership • Q1 2015

    Question

    Jason Napodano from Zacks Investment Research inquired about the Au study's enrollment targets and timeline, progress within the Veterans Administration including the significance of initial orders, the potential for international partnerships similar to the Rohto deal, and the discrepancy between rising royalty income and lower product sales from partner Arthrex.

    Answer

    CEO Martin Rosendale explained that for the Au study, there is no set limit on enrollment sites and expects to reach the interim analysis within 9-12 months. Chief Commercial Officer Dean Tozer detailed the VA strategy, noting initial orders signify commitment rather than large revenue, a point reinforced by Rosendale. Regarding international expansion, Rosendale stated the company is opportunistic but not actively seeking deals. He and Tozer also clarified that the discrepancy between royalty and product sales was due to a temporary inventory timing issue at their partner, Arthrex, which they expect to resolve.

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    Jason Napodano's questions to Nuo Therapeutics (AURX) leadership • Q4 2014

    Question

    Jason Napodano of Zacks Investment Research questioned the effectiveness of Nuo's strategy, highlighting that Aurix sales declined 13% in 2014 despite significant changes. He asked if the 17-person sales team was sufficient to compete and if the company could fund a larger force. He also expressed concern that the Angel partnership with Arthrex had not yielded expected sales growth, with total contribution declining year-over-year.

    Answer

    CEO Martin Rosendale and CCO Dean Tozer explained the Aurix sales decline resulted from a strategic shift away from unpredictable revenue sources to more stable hospital and VA markets, calling it a necessary step back to move forward. Tozer defended the small sales team as a prudent measure to manage cash while learning the complex sales cycle, with plans to scale after proving the model's viability. Regarding the Angel product, CEO Martin Rosendale and CFO Steve Shallcross attributed the slow ramp with partner Arthrex to unforeseen regulatory changes requiring device modifications, which delayed their ability to meet demand. They confirmed these issues are now resolved.

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