Nick Farwell's questions to NEPHROS (NEPH) leadership • Q4 2024
Question
Inquired about the market focus for the new 20-inch HydraGuard, the extent of expansion into non-healthcare verticals, the drivers and sustainability of Q4's high gross margins, and the potential impact of macroeconomic uncertainty on the business.
Answer
The 20-inch HydraGuard is initially focused on the healthcare sterile processing market due to new regulations, but the company is exploring other verticals like airports and schools. The improved gross margin is due to a new, favorable supplier agreement from 2024 and is considered sustainable in the low 60s range. The business is viewed as resilient to macroeconomic pressures because demand is driven by need and regulatory compliance rather than economic cycles.