Do global health challenges present HeraMED Limited with an opportunity?

Team Veye | 08 Apr 2020 ASX - HMD
Do global health challenges present HeraMED Limited with an opportunity?

HeraMED Limited (ASX: HMD)

US Market Entry Strategy Update

HeraMED Limited (ASX: HMD) (“HeraMED” or the “Company”), a medical technology company leading the digital transformation of maternity care with its proprietary in-home hybrid maternity care platform, HeraCARE, on 7 April 2020 announced that it was executing an active US market entry strategy, following the significant progress in the development of the platform, and the recent appointment of its US General Manager of Operations, Alexander Radke.

(Chart source: TradingView)

  • HeraMED targets the US$111 billion US maternal healthcare market with a comprehensive strategy developed by its healthcare expert and US General Manager of Operations, Alexander Radke
  • COVID-19 has presented unprecedented challenges and situations globally which have provided a very strong catalyst to fast-track the adoption of digital health and homecare-based solutions 
  • US market offers significant operational and commercial upside due to the exceptionally expensive healthcare system and poor outcomes 

 

(Graphic Source – Company Reports)

  • HeraMED US market entry strategy focuses on leveraging existing relationships with healthcare institutions to initially target healthcare providers including hospitals and doctors as well as employers providing medical insurance coverage 
  • The strategy has been optimised to offer expectant mothers and the wider US healthcare system with the triple aim of cost reductions, increased satisfaction and better maternity care outcomes (Data Source – Company Reports)

 

Veye’s Take

HeraMED plans to execute a long-term growth strategy. The strategy has been optimised to offer expectant mothers and the wider US healthcare system with the triple aim of cost reductions, increased satisfaction, and better maternity care outcomes. US market offers significant operational and commercial upside. COVID-19 has presented unprecedented challenges and situations globally which have provided a very strong catalyst to fast-track the adoption of digital health and homecare-based solutions. The stock has very good support nearby at $0.145. It is trading above 50 and 100 EMAs. The risk reward ratio for the stock is very good. The company seems to have a very good market and can do very well over a period of time. Veye recommends a "Buy" on “HeraMED Limited” at the current price of $0.15

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