Paul, Laser Vision Correction I did this exercise to get a handle what ONE center could make if it is true that the first 100 procedures cover all OH, i.e. are the break-even point. Out of the second 100 you can then, under the assumptions made, make about $ 1.45 Million in that center, because you only pay the Ophtho, VISX and the IRS.
I don't pay attention to earnings estimates. Just apply that to the number of centers, better : Lasers, some cities have several.
All I am saying is, there is quite a potential in profits and the prices are not as crazy as they look if you don't get into the economics. And one laser can do 600 procedures a month. Yikes, VISX..
If you are interested, go to the SNRS thread because for some reason there are two guys reporting from the ASCRS meeting the next seven days - provided they get their modems going in the hotel.
Also go to www.ascrs.org and look at the number of papers in the field.
I wish I was an Ophtho at this point, for a month. One would really get a feel of what is actually happening.. I have an Internist son (Stanford) but he is working on building an artificial kidney at Mass General. You have to ask Ophthos.
Never mind revenues etc. What counts, is, once they are over the break-even they will make tons. Except startup cost will be a drag when you keep adding centers quickly. I picked LCAV because they slowed down, having bitten off too much, maybe not being organized well enough, or whatever.
Where exactly the break-even point lies is also not THAT important to know, as long as the procedures per month go up substantially.
Walter in HK |
