Next generation portable oxygen concentrator (POC) company Belluscura (BELL) is punching way above its weight. Despite being a relatively young and modestly staffed medical devices manufacturer, it continues to enhance its technology leadership, build out infrastructure and importantly grow its distribution.
This underpins an exciting growth trajectory ahead. House broker Dowgate Capital is predicting unit sales will climb from 4,000 this year to 70,000 by 2025. This doesn't look unrealistic considering the double digit growth expected in the overall $1.5bn POC market. What's more, many of Belluscura's rivals also either sell inferior products and are struggling with supply chain issues.
In this context the company said today that it had signed a new supply agreement with VGM Group, one of the US’s largest Member Service Organizations for post-acute healthcare, including respiratory conditions.
That means that, overnight, Belluscura has gained immediate access for its blue-tooth enabled X-PLOR machine, which it launched in June 2022, to VGM's entire network of more than 2,500 healthcare providers located across nearly 7,000 sites.
CEO Bob Rauker commented: "The partnership provides a further opportunity to support the Group's continued growth. We look forward in expanding access to our high performing, lighter oxygen technologies and improving the quality of life for patients."
With regards to the numbers, Dowgate has set a 200p price target based on the group being profit neutral in H2 2023, cashflow positive by 2024 and delivering normalised EPS of 28.5c on revenues of $140.6m in 2025.
