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No. of Recommendations: 8
Hey AnalogKid,

Thank you for bringing this company to my attention. I'll admit, I'm very intrigued, especially with the low valuation, significant catalysts coming up in the next 1-2 years, and market opportunity. The product itself seems revolutionary. I will likely start a small position.

However, I do want to address your description of the Perfusion Services aspect of the business. Full disclosure: I'm a nurse, and in no way involved with transplantation, so my knowledge is somewhat limited. I welcome any other medical personnel to correct me on any points they see as incorrect.

Point number 3: multiple teams are sent -- as I understand it, the reason that multiple teams are sent to 1 corpse to harvest organs is not due to a lack of coordination, but because you need surgeons who specialize in those organs to remove them. I don't believe the cardiothoracic surgeon would remove a kidney, for example. So that means TransMedics would need to employ full surgical teams of a number of different specialties at each TransMedics hub. Say each organ speciality sub-team has 3 staff (2 surgeons and a first assist), and there are 4 sub-teams in each full team, that would mean employing 8 surgeons and 4 first assists at each hub, which would command somewhere in the ballpark of $2.5-4 million in salary.

My numbers here are completely fabricated and some of my assumptions are likely false, but you get my point. The overhead here would be huge.

It doesn't change my overall opinion of the growth opportunity for this company, simply something to consider.
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