BioSyent Q3 Update

Not much to report on here. Revenue was in line with expectations as management had guided to $4.5M in the last earnings presentation (they said the company is now doing over $1.5M/month in revenue).

I got the impression from the earnings presentation that the growth will accelerate in 2016 with the new products that will be out of the "launch" phase. Cysview, a already health Canada approved product that was acquired not too long ago, will launch in Q4. It will be interesting to see how much revenue that generates. Rene has said peak sales potential is $6M for that product, but as we know he tends to be very conservative.

The company now has $8.4M in cash and ROE on is still around 40%. Gross margin is still really strong at 77% because of the forex hedging the company has done. Seriously impressive. How microcaps do we know that have a hedging program in place? Their forex rates have also been locked in for 2016 and 2017 which will protect their margins well into the future.

I truly believe RX is a compounder for years to come and even if only grows around 30% per year, one could easily make ~14x his money over 10 years. This is one of those stocks that you just tuck away and keep holding for years. The model has already been proven out by Paladin Labs which has seen its stock go $1.50 to 142$.

Link to Q3 earnings presentation: