BioSig Tech. (BSGM) & Electrophysiology Sector - Cardiac/EP M&A heating up - the evolution of NeuroClear from defensive idea to offensive because of - BioSig Tech. (BSGM) & Electrophysiology Sector - InvestorVillage
BioSig Tech. (BSGM) & Electrophysiology Sector
This is a semi-private group. You are free to browse messages, but you must be a member of this group to post messages. Join This Group

Group: BioSig Tech. (BSGM) & Electrophysiology Sector   /  Message Board  /  Read Message

 
 






Keyword
Subject
Between
and
Rec'd By
Authored By
Minimum Recs
  
Previous Message  Next Message   Post Message   Post a Reply return to message boardtop of board
Msg  257 of 271  at  8/14/2019 12:39:11 PM  by

Rob Cos

The following message was updated on 8/14/2019 6:30:01 PM.

Cardiac/EP M&A heating up - the evolution of NeuroClear from defensive idea to offensive because of positive developments imo...

  
Down 800 Dow day on yield inversion which imo provides another opportunity to add BSGM before more comes out about Neuroclear over the coming months.
 
First see the last 2 cardiac deals this week alone I posted in last 2 posts including the Siemens $1.1 billion take out of  Cordinus (we know from stmts that Siemens is one of the many med device makers that have called BioSig this yr & visited BSGM booth at HRS)
 
These 2 can be added to the ones on the recent slide
 
 
 
 Now what is important is that the EP labs are one of the few profitable centers for hospitals, and the Electrophysiology area is growing double digits a yr. So the recent deals make sense and are consistent with the buzz at the Heart Rhythm Society meeting our group went to in San Fran in May. Every major med device company visited the BSGM booth - the JNJ Biosense Webster employees seemed camped out there.  
 
I'm going to repeat my reply below about NeuroClear as I think the market is missing how huge this is/will be. Remember my comment on what CEO said something to the effect that while he did not want to sell they may at some point make an offer that might be so good the board might have to take it - but they will never get his neurology assets.
 
So NeuroClear idea imo has been in the works for over a yr.  IMO it was originally conceived as a way for CEO to perhaps delay a takeover before the real growth in the stock (in Dec stock was high 3's low 4's but even with the nice appreciation since I recommended we do not want a takeover anytime soon).
 
So IMO this separate NeuroClear was likely a takeover defense mechanism if there was a bidding war for PURE EP Cardiac which imo actually could happen but I hope it doesn't. Most of the key med device bus development groups imo have touched base with company.
 
But in the past few months the slides and comments at Newport meeting have changed - the excitement level of neurology has increased. The meetings with the Vice Chairman of Mayo himself - detailed meetings for hours - have increased and the mgt excitement coming out of them have increased. This is the MAYO CLINIC Vice Chairman participating in long meetings - the same guy that said this...
 
 
o Lastly Dr Samuel J. Asirvatham, Mayo Clinic’s Vice-Chair of Innovation and Medical Director, Electrophysiology Laboratory was the keynote speaker at the Abbott half day HRS event that I believe had 250 people attending said during his speech that the BioSig’s Chief Technology officer Budi D is “one of the most important inventors of our time”. Of course, Dr Asirvatham has worked closely with Budi and BioSig given the 10-year R&D collaboration between the companies expanded in November 2018. In fact, the day Marty and I visited the LA offices, Budi and Barry K had just come back from a 3-day visit to Mayo.
 
 
He's clearly not only talking about the technology in Cardiac imo. Now we get direct investment into this subsidiary. IMO this NeuroClear idea has been moved from a defensive idea to avoid takeover too low to an offensive financing and business expansion strategy because of what Mayo and BioSig have been working on. (More detail in my post below and must read links for anyone who wants to truly understand). As I said  below its clear from public statements the Neurology effort is a joint program between the Mayo Clinic and BioSig and its driving public praise from the Vice Chairman and actual participation in detailed discussions for hours with BSGM.  John Kowalski, the superstar award winning JNJ BioSense Webster who sold the first Cardiac Mapping system and 1000th++ for JNJ and basically helped invent the cardiac medical device sales model and took a pay cut to come to BSGM and bought a lot of stock on the open market -  after meeting with Dr A for hours says he has never seen anything as exciting as BSGM in his 24 yrs in the industry. NeuroClear imo is no longer a simple defensive mechanism to avoid a low takeover. its much more.
 
As I said below in my opinion, at some point more money comes into BSGM through NeuroClear and Mayo's involvement will have to be reduced to writing in another agreement. We know from the recent public comments Mayo-BSGM moving into other areas and joint IP filings are coming - the link to my detailed Mayo Post is in the post below - make sure you read it twice but here are some of the related slides - shorts are missing the rest of the pipeline and Mayo Relationship imo - in this first slide see right side "
 
o Explore new disease areas and applications leading to :
 
- Joint IP filings
- Licensing opportunities
 
 
 
 
 So if you have not seen this read it. New investors or prospective investors should click every link below and the blue links at the top of this board. There is a LOT of information here at your fingertips. 
 

Re: 8K After Bell – Looks like they are getting $2.6 million+ direct funding into what looks like a neurology tech subsidiary “NeuroClear Technologies”

Nice digging and spot on comments by CHM_760 (Nice digging finding the Neurology comments on website thanks) and GAMer thanks for posting your thoughts.
This is an indeed out of nowhere financing of previously unknown subsidiary that I agree is likely to house the neurology technology being worked on at the Company together with the Mayo Clinic.
 
I remember back in December the CEO saying at the Redondo Beach meeting that one of his concerns was that there was already signs of interest from many of the bigger players in med devices including Phillips, Abbot, Siemens, Boston Scientific and Biosense Webster (JNJ) and that at some point they may come after the company - he said something to the effect that while he did not want to sell they may at some point make an offer that might be so good the board might have to take it - but they will never get his neurology assets....Of course these are very early stage but an area that could even be much bigger than PURE EP in Cardiac. We had a brief conversation to the effect he was looking for a way to protect those. Take away - very early but to me it was eye opening he thought neurology could be bigger than Cardiac.
 
So the next time we heard about the promise of neurology was at the March 19th Roth conference in Laguna Niguel/Dana Point during the formal presentation and also the dinner we had with investors and management. Again nothing specific but
the excitement was clear in management's voice with again the caveat its early but the opportunity in neurology is vast.
 
Then in late April my genius electrical engineer friend Marty (Gottaluvdabus) and I went to visit the Chief Technology Officer and new VP Engineering Barry Keenan (artificial pancreas Engineering Hall of Famer) for Marty to do a deep dive into the PURE EP system for me - and these two had just come back from a 3 day R&D session at Mayo with Dr A and Team as part of the 10 yr Mayo-BioSig Collaboration and they were literally beaming with excitement about the early stage things they were working on outside of cardiac. I remember saying to Marty on the way home "can you believe how excited Barry Keenan was after his first trip to Mayo working on R&D?!?"
 
See Marty's summary of that meeting here:
 
Then at HRS again the CEO and Barry K were discussing how this is much more than a one product company with a growing early pipeline in other areas like neurology, hypertension, pain management, etc.
 
See my HRS summary here:
 
And then the enhanced discussion of both Mayo and non-cardiac pipeline I noticed at the recent July 25th packed Newport Beach investor meeting where there was much talk about the progress Mayo and BSGM was making in "New Disease areas and applications leading to Joint IP filings and licensing opportunities". See my comments and the 3 Mayo slides from the summary of that meeting at this post:
 

https://www.investorvillage.com/groups.asp?mb=19723&mn=223&pt=msg&mid=19634023

And now as GAMer says we get this very interesting direct investment in NeuroClear without issuing a share of BSGM increasing cash. We already know from the June Letter to Shareholders that the company continues to get warrant money in and has cash that will last more than a yr and that was before this first infusion of cash from NeuroClear. So the company's cash is now solid for more than a yr with revenues starting this yr again confirmed on July 25th investor meeting.
 
I like this out of nowhere cash event....
 
o This monetizes an early stage asset that before today was valued at 0 in the current stock price/at the current ridiculously low BSGM market cap of about $150 million and that asset was not on the radar of most investors.
 
o I'm guessing this is a small piece of NeuroClear my guess is it likely puts initial total valuation of NeuroClear in the $30 million or more area.
 
o To me this is an initial small Private Placement to establish NeuroClear. I already had 3 investors ask me if there is anyway we can invest in NeuroClear. I believe this round was likely oversubscribed so no way we can get in here. But at some point I have to believe there will be another round at higher valuation than 1st (hence likely more cash with no near term BSGM stock sold)
 
o This to me is a suprise to both longs and shorts. The possibilities with this new structure would concern me if I am a short. All sorts of possibilities could happen in the coming yr or 2. If the worry of an offer for PURE EP comes - that could now be considered with a spin off of Neuroclear to keep Neurology while cashing in on a PURE EP sale (although the company does not want to sell PURE EP yet as demand appears great already in the top tier institutions).
 
o Any future additional NeuroClear financing would of course be at a higher total valuation down the road. Lets say the next one whenever it comes is priced so the total mkt valuation for NC approaches $50 million or likely more - with BSGM retaining a very large majority ownership of NeuroClear.......wow would BSGM mkt cap be low net of NeuroClear.
 
o Some day could NeuroClear be spun off or IPO'd....maybe....in a way shorts wake up today short BSGM and a piece of NeuroClear.....down the road this NC structure and funding can only get worse for them imo.
 
o More importantly I doubt this is a one and done on NeuroClear....there is simply not enough in the 8K (and notice no PR) for me to believe this is the last we hear. Its clear the Mayo Clinic is involved with BSGM in the neurology and other non-cardiac pipeline. Remember all the updates in the Mayo Press releases noted in the link above. And remember this quote from the Mayo Vice Chairman included in my HRS summary....
 
o Lastly Dr Samuel J. Asirvatham, Mayo Clinic’s Vice-Chair of Innovation and Medical Director, Electrophysiology Laboratory was the keynote speaker at the Abbott half day HRS event that I believe had 250 people attending said during his speech that the BioSig’s Chief Technology officer Budi D is “one of the most important inventors of our time”. Of course, Dr Asirvatham has worked closely with Budi and BioSig given the 10-year R&D collaboration between the companies expanded in November 2018. In fact, the day Marty and I visited the LA offices, Budi and Barry K had just come back from a 3-day visit to Mayo.
 
GAMer's right having a savvy wall street veteran like Ken Londoner as CEO and Board Members including the Vice Chairman of the NASDAQ and Sam Navarro with his medical device deal history makes this interesting but imo only the first of a multi-part strategy into neurology.
 
ANOTHER over delivery from the BioSig Team and Board of Directors....most small caps could learn a LOT from this team and Board.
 
Remember Ken Londoner's, Sam Navarro's and David Weild's background....think they're an asset in structuring NeuroClear in the most effective way ?
 

Samuel E. Navarro Appointed to BioSig Board of Directors

Successful investment banker and medical device industry veteran to join the Company as Independent Director

Santa Monica, CA, June 25, 2019 (GLOBE NEWSWIRE) -- BioSig Technologies, Inc. (NASDAQ: BSGM), a medical device company developing a proprietary biomedical signal processing technology platform designed to address an unmet need for the electrophysiology (EP) marketplace, today appointed Samuel E. Navarro to its Board of Directors.

Mr. Navarro brings to BioSig over 30 years of experience in investment banking and medical technology. He currently serves as managing partner of Gravitas Healthcare, LLC, a strategic advisory firm that specializes in emerging growth medical device companies. Since its founding in 2008, the firm has completed over 30 strategic partnership transactions with some of the largest medical device companies in the industry. From 2005 through 2008, Mr. Navarro served as a Managing Director and Global Head of Medical Technology Investment Banking at Cowen & Company. From 2001 through 2005, Mr. Navarro served as a senior portfolio manager at The Galleon Group running the Galleon Healthcare Fund. From 1998 through 2001, he was Global Head of Healthcare Investment Banking at ING Barings, and prior to that, he was Senior Medical Technology Research Analyst at UBS, Furman Selz and Needham & Company.

Mr. Navarro serves or has served on the Boards of other medical device companies, such as Arstasis, Derma Sciences, Dextera Surgical, Fixes-4-Kids, Jomed, MicroTherapeutics, StrataSkin Sciences, and one non-medical company, Pixelux Entertainment. Mr. Navarro also served in the past as an advisory board member of OrthoPediatrics. He also serves on the Board of Trustees at Stonehill College and has served in other non-profit foundations. Mr. Navarro received an MBA in finance from The Wharton School at the University of Pennsylvania. He also holds a master’s degree in engineering from Stanford University and a bachelor’s degree in engineering from the University of Texas at Austin.

“I have been very impressed with the way BioSig is pursuing its vision to bring innovation to some of the most challenging areas of bioelectronic medicine,” commented Mr. Navarro. “The Company has already laid a very strong foundation for commercial success of its first product, PURE EP™ System, and I look forward to contributing to further advance the Company’s strategy and activities that will best position BioSig within the convergence of biology and electronics.”

“Sam’s accomplishments in both investment banking and particularly the medical device space are second-to-none, and we are honored that he is able to join us as our new Independent Director. His experience adds more weight to the already impressive collective skillset of our Board, and we look forward to Sam’s contributions as we continue to execute on our core goals and objectives,” stated Kenneth L. Londoner, Founder, Chairman and CEO of BioSig Technologies, Inc.

Mr. Navarro ‘s nomination is the latest in a series of high-level appointments. Previously, BioSig announced that Dr. Jerome Zeldis, M.D., Ph.D, former Chief Medical Officer of Celgene, joined BioSig’s Board of Directors in May 2019, prior to Frank J. Quintero, a Principal at The Yucaipa Companies, and D.A. Wallach, the founder of Inevitable Ventures, joining the Company’s Advisory Board in the first quarter of 2019.

Kenneth L. Londoner, MBA

Founder, Chief Executive Officer, Chairman, and Director

Mr. Londoner founded BioSig Technologies, Inc. in February 2009. Mr. Londoner is the Managing Partner of Endicott Management Partners, LLC, a firm dedicated to assisting emerging growth companies in their corporate development and investing needs since 2004. From April 2007 to October 2009, Mr. Londoner was the executive vice president of NewCardio, Inc., a silicon valley based cardiac software company. Mr. Londoner also served as a Director and the architect for the turnaround at Alliqua BioMedical, Inc. (Nasdaq: ALQA) from May 2012 to March 2014. Mr. Londoner is a co-founder of Safe Ports Holdings, LLC, in Charleston, South Carolina, a port security and logistics company. Started in July 2005, the company built and sold an inland port development project to Dubai Ports World. The sale, in the fall of 2007, was for almost six times what investors had invested. Mr. Londoner is a member of Safe Ports Board of Directors. Mr. Londoner was the founder and managing partner of Red Coat Capital Management in New York. Founded in late 1996, the hedge fund (long/short equity strategy) grew from its initial base of $ 2 million in assets to a peak of $ 1.1 billion. Mr. Londoner started his investment career at J. & W. Seligman & Co., Inc., a leading institutional money management firm where he rose from research analyst to managing $3.5 billion in mutual funds, pension funds, and international assets. He joined Seligman in 1991 and left in 1997. Mr. Londoner graduated from Lafayette College in 1989 with a degree in economics and finance and received his MBA from NYU's Stern School of Business in 1994, with a dual major in finance and management. Mr. Londoner just celebrated his 25th wedding anniversary and has four children. Mr. Londoner has been working with Lafayette College to develop and expand a summer internship program designed to provide undergraduate students with high-value summer employment in leading growth industries in the U.S.

David Weild IV

Director

Mr. Weild has served as a director since May 2015. Mr. Weild is founder, chairman, and CEO of Weild & Co., Inc., parent company of the investment banking firm Weild Capital, LLC. Prior to Weild & Co., Mr. Weild was vice chairman of NASDAQ, president of PrudentialFinancial.com and head of corporate finance and equity capital markets at Prudential Securities, Inc. Mr. Weild holds an M.B.A. from the Stern School of Business and a B.A. from Wesleyan University. Mr. Weild is currently on the board of PAVmed. From September 2010 to June 2011, Mr. Weild served on the board of Helium.com, until it was acquired by R.R. Donnelly & Sons Co. Since 2003, Mr. Weild was a director and then chairman of the board of the 9-11 charity Tuesday’s Children. He became chairman emeritus in late 2016 and still serves on the board. Mr. Weild brings extensive financial, economic, stock exchange, capital markets, and small company expertise to the Company gained throughout his career on Wall Street. He is a recognized expert in capital markets and has spoken at the White House, Congress, the SEC, OECD and the G-20 on how market structure can be bettered to improve capital formation and economic growth.

 
 
 


     e-mail to a friend      printer-friendly     add to library      
| More
Recs: 8     Views: 563
Previous Message  Next Message   Post Message   Post a Reply return to message boardtop of board

Replies
Msg # Subject Author Recs Date Posted
258 Re: Cardiac/EP M&A heating up - exciting time... BioRookie 3 8/16/2019 6:42:38 AM


About Us  •  Contact Us  •  Follow Us on Twitter  •  Members Directory  •  Help Center  •  Advertise
Not a member yet? What are you waiting for? Create Account
Want to contribute? Support InvestorVillage by donating
© 2003-2019 Investorvillage.com. All rights reserved. User Agreement
   
Financial Market Data provided by
.


Loading...