Organs-as-a-Service medical technology company!
TransMedics Investment Case!
For thousands of years, people have been dying from organ failures, and there was nothing that could help.
Until December 23, 1954, when Dr. Joseph Murray performed the world’s first successful organ transplant surgery. Before this surgery, organ transplantation was looked at as fringe science or something out of science fiction novels.
While the invention of this procedure revolutionized medicine, it was far from perfect, as due to various reasons, most organ transplant surgeries failed.
Over the years, scientific understanding of the procedure grew, and we learned that the methods used in storing and transporting organs are key factors that determine the outcomes.
This is the area that TransMedics has chosen to tackle!
TransMedics is an organ transplant storage and transportation solutions company.
Their products have seen explosive demand, with sales growing 20x in the last 5 years!
Such strong growth has sent their stock up 440% since their IPO in 2019!
In this TransMedics Investment Case, I will explain their business model and future growth opportunities!
1. Business Model
2. The Opportunity
3. The Ecosystem
4. Kidney System
5. International Expansion
6. Finances
7. Valuation
8. Conclusion
1. Business Model
TransMedics (TMDX) key product is their Organ Care System (OCS).
OCSs are medical devices that are custom-built for safe organ storage and transportation of organs, focusing on the lung, heart, and liver.
Procuring organs for patients is only part of the puzzle, getting them to the hospital in an ideal condition in time for the surgery is a serious challenge.
Key bottlenecks include:
Effectiveness of cold storage
Limited organ utilization
Logistical constrains
High cost
Keeping organs on ice in a traditional cold storage keeps them “alive” only for a few hours