Fund Manager Summary
The fund managers believe that BTC Health Ltd presents a promising outlook following a tumultuous three years, marked by the arrival of three new strategic investors who collectively hold a 15% stake in the company. This development, along with the appointment of a new Head of Finance, signals a potential turning point for BTC. In their opinion, the partnership with these investors, who operate within the medical device sector, opens up opportunities for collaboration and commercialization of medical devices in Australia. The managers note that BTC's past challenges in scaling operations can now be addressed through these strategic alliances, potentially restoring confidence in the business. Additionally, recent deals for the exclusive rights to distribute neuro-spinal products and Rhythm infusion pumps are seen as critical steps towards profitability and market penetration.
Source: Trading View
Commentary From The Managers
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Naos Asset Management
31 Mar 2025
Unknown
Summary
- BTC Health Ltd. has experienced a significant share price increase over the last 12 months.
- Naos Asset Management highlights BTC's recent contract win for critical care ECMO machines at a tier-1 hospital in Q1 FY25.
- Followed by an exclusive distribution agreement with Corcym, an Italian cardio-focused medical device manufacturer.
- Corcym's distribution program in Australia and New Zealand valued at ~$3.6 million p.a. will now be managed by BTC Cardio Pty Ltd..
- This collaboration aligns with BTC's strategy to expand its cardio division with complementary products.
- Naos Asset Management believes there are further organic growth opportunities as BTC builds relationships with key hospital decision-makers.
- The importance of executing on recent wins by providing timely and quality service to clients is emphasized.
- If BTC can maintain high service levels, the potential to in-license more devices will increase, attracting medical device manufacturers.
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Naos Asset Management
31 Mar 2025
Unknown
- BTC Health Ltd. has experienced a significant share price increase over the last 12 months.
- Naos Asset Management highlights BTC's recent contract win for critical care ECMO machines at a tier-1 hospital in Q1 FY25.
- Followed by an exclusive distribution agreement with Corcym, an Italian cardio-focused medical device manufacturer.
- Corcym's distribution program in Australia and New Zealand valued at ~$3.6 million p.a. will now be managed by BTC Cardio Pty Ltd..
- This collaboration aligns with BTC's strategy to expand its cardio division with complementary products.
- Naos Asset Management believes there are further organic growth opportunities as BTC builds relationships with key hospital decision-makers.
- The importance of executing on recent wins by providing timely and quality service to clients is emphasized.
- If BTC can maintain high service levels, the potential to in-license more devices will increase, attracting medical device manufacturers.
Summary
Naos Asset Management
30 Sept 2024
$0.07
- BTC produced the most complete result since Naos Asset Management became shareholders.
- Despite being a subscale business, BTC now appears to have the platform for significant growth.
- Group revenue increased by 5%, although the business reported a small loss at the NPAT level.
- In September, BTC secured a $5 million contract over 5 years to supply ECMO equipment to the Melbourne Royal Children’s Hospital.
- This equipment is vital for life support in critical heart or lung conditions.
- The contract includes capital equipment supply, ongoing maintenance, and essential consumables.
- This is a critical milestone for BTC, providing significant potential over the next 12-24 months.
- Credibility has been established by succeeding in public hospital tenders for life-saving equipment.
- The ECMO market in Australia is substantial, with 26 hospitals utilizing these machines.
- If BTC fulfills and exceeds this tender, it may win additional tenders within 6-24 months.
- Additional tenders could be material compared to BTC's FY24 revenue of approximately $8 million.
- ECMO machines are costly, generating recurring revenue from necessary consumables.
- A sizable fleet rollout could enhance organic revenue growth in the medium term.
- Naos Asset Management believes BTC has components in place for organic growth through further tender wins and potential accretive M&A.
Summary
Naos Asset Management
30 Sept 2023
Unknown
- Naos Asset Management has noted a significant turnaround for BTC Health Ltd after a challenging 3-year period.
- BTC welcomed three new strategic investors, collectively holding a 15% stake in the company.
- A related party has been appointed as the new Head of Finance for BTC.
- The new investors operate within the medical device space, creating opportunities for partnership and commercialization in Australia.
- Historically, BTC faced challenges in scaling through acquisitions and licensing medical products.
- The partnership provides BTC access to various medical devices with no upfront cost.
- This arrangement includes an equity ownership and a royalty agreement that converts to BTC shares.
- If BTC can successfully market these devices, it could restore confidence in management and the business.
- The recent announcements include commercial deals for exclusive rights to distribute neuro-spinal products.
- BTC also secured an exclusive sales and distribution agreement for Rhythm infusion pumps in Australia.
- These deals are considered important steps towards expanding BTC's product verticals.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"A new chapter seems to be unfolding for BTC Health Ltd, with strategic investors and promising partnerships potentially paving the way for market penetration and profitability. If they can leverage these alliances effectively, the future may be brighter than it appears."
Last Updated: 31 Mar 2025
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Frequently Asked Questions
Who is investing in BTC Health Ltd (ASX:BTC)?
Fund managers including Naos Asset Management have invested in BTC Health Ltd (ASX:BTC).
Why do fund managers invest in BTC Health Ltd?
Fund managers are investing in BTC Health Ltd due to recent strategic developments that signal a potential turnaround for the company. The appointment of new strategic investors with a 15% stake and a related party as Head of Finance enhances BTC's credibility and opens opportunities for partnerships in the medical device sector. This collaboration allows BTC to access a range of medical devices without upfront costs, supported by a royalty agreement that aligns interests. Recent commercial agreements for exclusive distribution rights further position BTC to penetrate the Australian market, potentially driving profitability and restoring investor confidence.
What happened to BTC Health Ltd (ASX:BTC)?
There have been no recent updates from fund managers regarding BTC Health Ltd although fund managers including Naos Asset Management have previously commented.