Report

Approvals for the Platinum and Optima radiology tables

Approvals for the Platinum and Optima radiology tables

SIGNIFICANT NEWS

FACT

DMS has announced that its Optimum and Platinum radiology tables have been approved by UniHA (the first cooperative purchasing group of French public hospitals), for an estimated minimum €5m revenue over the next three years.


ANALYSIS

The news is good, particularly following the mitigated revenue number released recently for FY17 (-9% comparable). UniHA managed as much as €3.4bn purchases in FY17 on behalf of public hospitals, which are not obliged to resort to call for tenders when using their services. The two slight concerns related to this good news are, first, that the estimated revenue is not guaranteed and, secondly, that the margin level on these potential orders is probably lower than the average margin for these kinds of tables. However, the group needs to restore top-line growth and we welcome the news.


IMPACT

No change to our forecasts before the first orders come in.
Underlying
Diagnostic Medical Systems

DIAGNOSTIC MEDICAL SYSTEMS SA, (formerly known as DMS), is a France-based company, which together with its subsidiaries, designs, produces and markets medical imagery devices dedicated to conventional and digital radiology as well as bone densitometry. The Company manufactures a range of products for bone densitometry examination, including the ultrasound imaging system UBIS 5000, Challenger Envision, Stratos dR and Stratos. In the radiology sector, its products include Baccara dRF 43, EOL, Platinum and Da Vinci solutions, among others. In addition, it offers such products as scanners, transcranial Doppler, and Giotto Image mammography system. The Company operates several direct subsidiaries, AXS Medical, Apelem SAS, which manufactures radiology equipment, Medilink SARL, which produces Doppler and bone densitometry devices, Apelem SA, based in Spain, Alpha MOS based in France and one indirect subsidiary, SA Apelem and one indirect affiliated company, Spectrap.

Provider
AlphaValue Corporate Services
AlphaValue Corporate Services

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Analysts
Fabrice Farigoule

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