TALKMED GROUP - Is it all about Dr Ang Peng Tiam?

IPOTRUST Meets TALKMED GROUP

The meeting with TALKMED GROUP CFO, Edwin Lee, took place yesterday. Edwin Lee presented information about the group structure, history of its founding members, group business activities and strategy going forward.

TALKMED GROUP business structure is actually very straightforward. It is asset light and it has the exclusive partnership with PARKWAY HOSPITAL SINGAPORE in providing oncology services to the hospital. This collaboration will be due in the year 2021. It is a highly profitable, high margin, 60% of patients load are foreigners, 40% are local.

TALKMED's subsidiary Stem Med currently owns a HSA accredited lab for producing and storing adult stem cells to be used for Stem Cells therapy. Even though Stem Cells therapy is still a grey area in the treatment of cancer, it is now commonly used in US, Malaysia, China, South Korea and many other countries for the treatment of many other illnesses except Singapore. The group believes that it will come a time whereby Singapore will gain acceptance to Stem Cells therapy.

Stem Med is currently building a second lab to produce CAR T-cells with a Capex of between 10 Mil - 20Mil, the lab will likely to be operational by 2019. TALKMED is also actively seeking M&A opportunity in the region.

Because close to 50% of the revenue streams actually come from Dr Ang Peng Tiam's clinic alone, his suspension will have some financial negative impact to TALKMED in the next few quarters. Investors could actually wait a little while before visiting the stock.