Inion - MedTech Revolution

[Simon Gordon]

INION listed on the LSE Main Market in December 2004.

Ticker: IIN

The following is from the Inion website About Inion

Inion is a Finnish company that specialises in the development of biodegradable medical implants, a fast-growing segment of the global orthopaedics market. This growth is being driven by an on-going shift from metal implants to biodegradable materials based on a range of benefits they provide to both the patient and the surgeon.

Inion’s core expertise and technology lies in the design and manufacture of innovative biodegradable polymer devices, such as plates, screws, pins and membranes. These implants are used to enhance the healing of skeletal injuries (bone and soft tissue), such as those caused by trauma or by reconstructive surgery.

Key to the development of Inion’s products is that they are designed by surgeons for use by surgeons, and possess most of the key properties desired of an implant:

Biomechanical strength

Completely biodegradable

Predictable degradation profile

Ease of use

Safety

Furthermore, the Company is now developing new biodegradable devices that incorporate bone growth factors to actively promote new bone growth and accelerate the healing process.

Inion currently sells its products globally through a combination of direct sales forces in selected markets or by distribution agreements with established medical devices companies. This includes two recent deals with Stryker, which will give Inion greater access to the key US market.

http://www.inion.com/en_GB/

:idea:

 

[Simon Gordon]

I have sold my Inion shares, for after accumulating more information and adding to the exisiting available I came to the conclusion that the PMV of Inion is £50m.

In 2003 Bionx a Finnish bio-implant company was bought by Conmed for $48m, it had T/O $18m.

MacroPore sold it's bio-implant division to Medtronic for $21m. Have a look at the chart!

The global market stands at around $200m for bio-implants.

Surgeons are slow to change due to learning new techniques and the implants can be bulkier than metal.

Clinical data is needed so as to market the story of Inion's super implants. This will take years!

The Dental Implants face serious competititon and could be a distraction.

As John McCormick (HealthPoint Capital) said they need a blockbuster and at the mo. they don't have one and will not have one in the near term.

The bone growth implants for 2007 is probably optimistic.

In fact I think the CEO is far too optimistic in general. $1B T/O looks extremely difficult to engineer.

Inion have spun a good story but after digging deep I think it does not warrant it's current valuation.

As a story stock the market could run with it for a while but when it crashes it will be violent.

No doubt a buy note will come out soon. The finals at end Feb. with news on the spinal implant. All positive short term noise, it could hit £2.50 or £3.00 or it could as easily hit £1.00 or less.

Good Fortune!!!!