AMERICAN BIOMED, Minimally Invasive Technology (ABMI) Message Board

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Microcap & Penny Stocks : AMERICAN BIOMED, Minimally Invasive Technology (ABMI)

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To: samcat9 who wrote (1407)	7/6/1998 10:26:00 PM
From: Jeffrey L. Henken	Read Replies (2) of 2887

ABMI due diligence: Today along with seeing my dental patients I spoke with Steve Rash, CEO of American BioMed, Marshall Kerr head of sales and Dr Samuel Ahn Chief Clinical Advisor to the company. I also spoke with Diane Lefebrve in I/R at AVEI and Mike Markow consultant to Columbia Capital. Mike of course has nothing to do with American BioMed except he is a fellow investor. Diane simply works at AVEI in I/R. The point I'm trying to make is that people will talk to investors if we take the time to make the phone calls. There are many things an investor can learn on the internet but sometimes you have got to go to the source. I implore all interested investors to make phone calls to the companies they would like to either invest in or remain invested in. It will change your investment life forever for the better. We can help each other as investors if we freely share information. So why do I like AVEI? I called I/R at AVEI and spoke with Diane Lefebrve and their earnings will be out July 20th after the close. I'm betting they will be outstanding. They have the bests stents in the business right now and they are looking at acquisitions to broaden their product line. My knowledge of what AVEI is and what they would like to be in the future leads me to conclude they might very well be interested in acquiring ABMI. Any rumors about JNJ acquiring AVEI are just that and nothing more. AVE does not want to end up being the forgotten company that Cordis has become since JNJ acquired them. American BioMed on the other hand is definitely up for sale which is why I posted something similar to this on one of the due diligence threads recently: American Biomed, Inc. is a development stage company engaged in the development, manufacture and marketing of medical, surgical and diagnostic devices. For the three months ended 3/31/98, net sales rose 38% to $162 thousand. Net loss fell 13% to $559 thousand. Revenues benefitted from an increase in domestic distributors. Lower loss was partially offset by increased legal fees, additional insurance coverage and increased sales and marketing expenses. americanbiomed.com American BioMed is a small company in the minimally invasive surgical field. Although the company has only 25 employees and has never made a profit they have some very valuable technology. Valuable to whom you might ask? Besides the current shareholders I think ABMI's broad product line and 27 patents makes them a prime acquisition target. If ABMI is acquired by another larger company in this field it will be for several times what the company the .56 sells for today. How do I know? biz.yahoo.com Well first off I have talked to the company's CEO Steve Rash on numerous occasions. He has been labeled a turn around and takeover specialist. Although he has had that title for 3 long years now at American BioMed he may soon live up to it. I'll tell you why: The rate of consolidation in the health care industry has never been higher. Especially in this corner of the industry. Let me give you some examples. Arterial Vascular Engineering(AVEI) acquired World Medical Corporation for $62 million dollars on April 24th: biz.yahoo.com On June 24th BSX(Boston Scientific) purchased Schneider to broaden their product line: biz.yahoo.com AVEI was also looking hard at Schneider but they could not afford the $2.1 billion price tag. How will AVE continue to compete? How about JNJ and the other players in this field? JNJ has been losing market share rapidly and they could easily afford to buy a small company like American BioMed for simple patent protection alone. But that's not the only reason as JNJ just like AVEI does not have an atherectomy device at all, not even in R&D. For these reasons I think ABMI could be next on the acquisition block. AVEI has even admitted they are looking at 10 to twelve different acquisition possibilities: Message 4784737 Remember we are merely speculating but there certainly is plenty of evidence that would seem to make American BioMed and excellent acquisition choice for AVE. Like what you say? First off AVE does not have a catheter bundled with AVE's stents yet. They may not need one now but it still would be nice in the future. As I said they recently bought World Medical which does not have a proven product line either other than some catheters for $62 million. Basically they were purchased for their AAA Talent stent system which will not reach the market until 2001. If you ask me to date AVEI is still a one trick pony. A very good pony but they could still use a broader portfolio. I have read post after post at the Yahoo AVEI thread that confirms that AVEI does not yet bundle their stents with a catheter. American BioMed's OmniStent designs are very similar to the stents that World Medical currently has in phase II testing. Will AVE use a catheter designed by World Medical to deliver these stents as well as their current designs? Are they are looking to an outside source for catheters that could be quickly designed for this purpose: American BioMed's catheters could be just the ticket. Will that happen? Probably not, I'll admit that it probably won't happen but it's possible. What other products do they have that might round out AVEI's product line? How about the OmniCath? Recently Dr Summers former Chairman of the board and inventor of much of American BioMed technology have discussed some of the advantages of this atherectomy device currently resuming phase II testing. Now remember as I said neither Arterial Vascular Engineering nor JNJ has an atherectomy device. New protocols for the OmniCath are set for the phase II trials will be starting again. The markets that this atherectomy device will compete in are in excess of $500 million according to American Biomed's calculations when it is approved for all hoped for uses. americanbiomed.com biz.yahoo.com biz.yahoo.com Perhaps the Guidewire MicroFilter(OmniFilter) which also will address a market as high as $500 million starting in early 1999. The Company has developed a percutaneous temporary filter which is mounted on a guide wire and is used to prevent stroke-causing blood clots from reaching various organs of the human body. americanbiomed.com americanbiomed.com American BioMed also has the OmniStent technology which could enter phase I testing this year. These stent designs are very similar to World Medicals. The bifurcated OmniStent™ is a Y-shaped bifurcated stent designed for use in aortic bifurcation. However, small versions may be used at any branched blood vessel: americanbiomed.com biz.yahoo.com American BioMed estimates that it's products compete in a $10 Billion market. Their silicone catheters no doubt have to compete more on the basis of price and performance than the fact they won't fragment if they fracture or cause an allergic reaction. Still they do have those added advantages. American BioMed presented at the National Vascular Meeting in San Diego three weeks ago. All indications are that it was a huge success. Dr Ahn the company's principal clinical investigator and one of the most widely published and respected vascular surgeons in the country was there and held a workshop on the use of American BioMed catheters. It was essentially the coming out party for the Ahn Thrombectomy Catheter: americanbiomed.com The company also has the broadest line of 100% silicone catheters in the business. It is estimated that as many as 18 million Americans are sensitive to latex. Severe allergic reaction to latex catheters can result in anaphylatic shock and has actually been the cause of several deaths world wide. Anyone in the health care field can tell you latex allergies are becoming more numerous every year. Check out ABMI's other 100% catheters by clicking on the URL below: americanbiomed.com The $2.1 billion purchase of Schneider by BSX pushes AVE and other companies in this field closer to acquisitions of their own. ABMI could be had for a whole lot less than the $2.1 billion that Schneider went for just a short while back. ABMI has a broader product line. It would be a great fit in my opinion. If ABMI has to go it alone they can indeed do just that thanks to a recent signing of a $5 million equity line of credit. This money may be all they need to get into 1999 and a chance at true profitability: biz.yahoo.com ABMI is ISO 9001 certified and is currently working through one OEM deal and negotiating another larger deal according to the last 10K. I am hoping that soon we will see the company announce CE Mark approval which will ramp up sales in the European Community. Here is their latest distributor announcement: biz.yahoo.com True, ABMI has a history of disappointing investors and 1998 could be more of the same but then that's why the stock sells for .56. I think we will be moving higher again soon. Please everyone do your own due diligence. Make some phone calls of your own, if you like, to confirm what I am telling you. Regards, Jeff

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