1 00:00:05,920 --> 00:00:08,760 Speaker 1: Curre and welcome to this episode of Shared Lunch, which 2 00:00:08,760 --> 00:00:11,719 Speaker 1: we recorded at the headquarters of Fisher and pikell Healthcare 3 00:00:11,800 --> 00:00:13,360 Speaker 1: and his Tamaki Auckland. 4 00:00:13,920 --> 00:00:15,440 Speaker 2: Fish and Pike is probably. 5 00:00:15,080 --> 00:00:18,239 Speaker 1: Best known for its design and manufacturer of systems and 6 00:00:18,280 --> 00:00:22,200 Speaker 1: products to help with respiratory issues and obstructive sleep apnea. 7 00:00:22,560 --> 00:00:25,759 Speaker 1: I'm Helen Madison and to talk about this milestone and 8 00:00:25,800 --> 00:00:28,760 Speaker 1: Watson Storff for the next thirty years in all its 9 00:00:28,800 --> 00:00:32,280 Speaker 1: plans and went on tour at the East Tomackie campus 10 00:00:32,680 --> 00:00:35,280 Speaker 1: courtesy of Managing director Lewis Graydon. 11 00:00:36,320 --> 00:00:40,080 Speaker 3: Investing involves risk. You might lose the money you start with. 12 00:00:40,520 --> 00:00:44,320 Speaker 3: We recommend talking to a licensed financial advisor. We also 13 00:00:44,360 --> 00:00:49,159 Speaker 3: recommend reading product disclosure documents before deciding to invest. Everything 14 00:00:49,159 --> 00:00:51,760 Speaker 3: you're about to see and hear is current at the 15 00:00:51,800 --> 00:00:52,680 Speaker 3: time of recording. 16 00:00:53,200 --> 00:00:54,800 Speaker 1: So let us tell us about the site that we're 17 00:00:54,840 --> 00:00:55,880 Speaker 1: on here in East Tommocke. 18 00:00:56,640 --> 00:01:00,200 Speaker 4: Sure, So this is one hundred acres. We've been here 19 00:01:00,240 --> 00:01:03,160 Speaker 4: since two thousand and one. We're currently in the Daniel Building, 20 00:01:03,240 --> 00:01:05,880 Speaker 4: which is the fourth of four buildings. Right now we 21 00:01:05,920 --> 00:01:09,160 Speaker 4: have about four thousand people on this site, about nine 22 00:01:09,240 --> 00:01:11,240 Speaker 4: hundred those involved in R and D couple of thousand 23 00:01:11,240 --> 00:01:15,280 Speaker 4: involved in manufacturing. The fifth building is being planned right now. 24 00:01:15,319 --> 00:01:18,800 Speaker 4: That's a hole in the ground over there that'll complete 25 00:01:18,800 --> 00:01:20,959 Speaker 4: this site. We expect that to occur in the five 26 00:01:21,000 --> 00:01:23,319 Speaker 4: to six year timeframe and that will be six to 27 00:01:23,360 --> 00:01:25,760 Speaker 4: seven thousand people on this site at that time. 28 00:01:26,240 --> 00:01:28,520 Speaker 1: Lewis R and D has always been a big priority 29 00:01:28,560 --> 00:01:30,960 Speaker 1: for Fisher and Pikel and it's been pretty impressive given 30 00:01:30,959 --> 00:01:33,520 Speaker 1: the short term things that companies that are listed, you know, 31 00:01:33,600 --> 00:01:36,720 Speaker 1: need to focus on. Why is it such a passion 32 00:01:36,920 --> 00:01:37,839 Speaker 1: for Fish and Pikel. 33 00:01:38,319 --> 00:01:41,120 Speaker 4: Well, our whole business is based on having a therapy, 34 00:01:41,200 --> 00:01:44,600 Speaker 4: having products, having technology that other people haven't got. We're 35 00:01:44,600 --> 00:01:47,640 Speaker 4: trying to improve outcomes. That's the core of our business. 36 00:01:47,760 --> 00:01:50,680 Speaker 4: And to improve outcomes, to do better than what you 37 00:01:50,760 --> 00:01:53,120 Speaker 4: get today, you have to do R and D. And 38 00:01:53,160 --> 00:01:56,040 Speaker 4: in a medical device business that R and D is 39 00:01:56,040 --> 00:01:58,120 Speaker 4: a five to ten year timeframe until it starts to 40 00:01:58,160 --> 00:02:02,040 Speaker 4: turn into regular, reliable and come people wise. R and 41 00:02:02,080 --> 00:02:04,920 Speaker 4: D be about nine hundred people for us, and I think, 42 00:02:04,960 --> 00:02:07,920 Speaker 4: as you said, it's roughly ten percent of revenue that 43 00:02:07,960 --> 00:02:11,000 Speaker 4: we spend on R and D. But it's absolutely fundamental 44 00:02:11,040 --> 00:02:12,160 Speaker 4: to our business model. 45 00:02:12,800 --> 00:02:15,200 Speaker 1: And in terms of where the company is going then, 46 00:02:15,280 --> 00:02:17,920 Speaker 1: I mean to sustain that. You think of some of 47 00:02:17,919 --> 00:02:21,320 Speaker 1: those UIs companies that have got very deep pockets. How 48 00:02:21,360 --> 00:02:24,240 Speaker 1: does a company that's doing it's R and D from 49 00:02:24,280 --> 00:02:26,760 Speaker 1: New Zealand, how do you keep going well? 50 00:02:26,760 --> 00:02:30,000 Speaker 4: First of all, anything we're doing, we'll invest whatever we 51 00:02:30,080 --> 00:02:33,799 Speaker 4: think we need to do so on a global basis, 52 00:02:34,120 --> 00:02:37,520 Speaker 4: these are relatively small, relatively niche things, and our R 53 00:02:37,520 --> 00:02:41,400 Speaker 4: and D spend will be competitive with anyone whatsoever. And 54 00:02:41,440 --> 00:02:43,680 Speaker 4: it's because we've chosen. If we've chosen what we're going 55 00:02:43,720 --> 00:02:46,400 Speaker 4: to spend it on. Medical devices actually kind of suit 56 00:02:46,440 --> 00:02:49,160 Speaker 4: New Zealand. We do have the skill set here. We 57 00:02:49,760 --> 00:02:52,800 Speaker 4: you know, we have good I think we have a 58 00:02:52,840 --> 00:02:58,440 Speaker 4: good engineering and science education system. We have a good 59 00:02:58,440 --> 00:03:01,520 Speaker 4: hospital system and those are the two things that you need, 60 00:03:01,680 --> 00:03:03,760 Speaker 4: and we have a good environment here for doing I 61 00:03:03,800 --> 00:03:06,960 Speaker 4: would say very early stage clinical research. I think New 62 00:03:07,080 --> 00:03:09,440 Speaker 4: Zealand does well on all three of those elements. 63 00:03:09,880 --> 00:03:11,520 Speaker 1: One thing that we have at the moment, though, is 64 00:03:11,560 --> 00:03:13,799 Speaker 1: what they call a brain drain. Our best and our 65 00:03:13,840 --> 00:03:16,880 Speaker 1: brightest once they've graduated from university, they tend to be 66 00:03:16,919 --> 00:03:21,040 Speaker 1: going off shore. How are you guys finding the ability 67 00:03:21,080 --> 00:03:22,239 Speaker 1: to get the right people. 68 00:03:22,360 --> 00:03:25,320 Speaker 4: Well, I'd like to think we're a brain magnet. I'd 69 00:03:25,440 --> 00:03:28,760 Speaker 4: like to think we're attracting them, and I think we do. 70 00:03:29,880 --> 00:03:32,560 Speaker 4: You know, every year I forget the exact number now, 71 00:03:32,639 --> 00:03:39,119 Speaker 4: but we might hire eighty to one hundred STEM subject graduates. 72 00:03:39,480 --> 00:03:41,800 Speaker 4: We get over a thousand applicants in New Zealand for 73 00:03:41,840 --> 00:03:47,000 Speaker 4: those jobs, and as our international profiles grow on, we 74 00:03:47,040 --> 00:03:49,480 Speaker 4: are able to attract people from outside New Zealand who 75 00:03:49,480 --> 00:03:51,240 Speaker 4: want to come to New Zealand because they want to 76 00:03:51,240 --> 00:03:53,760 Speaker 4: work for FISHERM Pikel. So we are able these days 77 00:03:53,760 --> 00:03:55,080 Speaker 4: to bring people to New Zealand. 78 00:03:55,640 --> 00:03:59,160 Speaker 1: Well, R and D always be here or do you 79 00:03:59,200 --> 00:04:01,040 Speaker 1: also thinking of offshore too? 80 00:04:01,800 --> 00:04:05,320 Speaker 4: It's something we're always thinking about. I do think we've 81 00:04:05,320 --> 00:04:07,960 Speaker 4: got two things going. New Zealand is actually quite hard 82 00:04:07,960 --> 00:04:12,880 Speaker 4: to beat for R and D in medical devices, and 83 00:04:13,000 --> 00:04:16,839 Speaker 4: we always want to have our R and D closely 84 00:04:16,920 --> 00:04:20,880 Speaker 4: located with clinical, closely located with manufacturing. Sometimes the R 85 00:04:20,880 --> 00:04:23,920 Speaker 4: and D is maybe not the product idea. Sometimes the 86 00:04:24,000 --> 00:04:25,479 Speaker 4: R and D is how do I make it at all? 87 00:04:26,200 --> 00:04:28,000 Speaker 4: Sometimes the R and D is how do I make 88 00:04:28,040 --> 00:04:30,760 Speaker 4: it cost effectively? So we want that R and D 89 00:04:30,880 --> 00:04:34,360 Speaker 4: totally linked to manufacturing, So when we're thinking about where 90 00:04:34,400 --> 00:04:38,239 Speaker 4: we might locate, it's the whole package. It's not really 91 00:04:38,360 --> 00:04:39,599 Speaker 4: just R and D by itself. 92 00:04:39,680 --> 00:04:43,520 Speaker 1: Now, if we think back to the beginning, when you've 93 00:04:43,520 --> 00:04:46,599 Speaker 1: done your Bachelor of Science, you made it in physics, 94 00:04:47,080 --> 00:04:49,599 Speaker 1: and you obviously needed a job. But the company you 95 00:04:49,720 --> 00:04:54,400 Speaker 1: sure did, the company that you actually started in healthcare 96 00:04:54,520 --> 00:04:55,320 Speaker 1: wasn't the main. 97 00:04:55,160 --> 00:04:57,400 Speaker 2: Focusing, was it. So talk me through that. 98 00:04:57,760 --> 00:05:00,800 Speaker 4: We had an applied technology division, was what it was called. 99 00:05:00,839 --> 00:05:03,479 Speaker 4: That's what I started in, and that had a couple 100 00:05:03,480 --> 00:05:06,960 Speaker 4: of technical products, and one of them was the respiratory hemaphorer. 101 00:05:07,720 --> 00:05:10,840 Speaker 4: So that's what I joined in nineteen eighty three. 102 00:05:11,120 --> 00:05:12,680 Speaker 1: There will be a huge amount of things that have 103 00:05:12,880 --> 00:05:14,240 Speaker 1: changed in that time. 104 00:05:14,440 --> 00:05:16,240 Speaker 2: Given we're now twenty twenty four. 105 00:05:16,960 --> 00:05:20,680 Speaker 1: Is there one thing that has remained constant in those 106 00:05:20,720 --> 00:05:24,680 Speaker 1: forty one years, Oh my goodness. 107 00:05:24,800 --> 00:05:30,800 Speaker 4: I think the desire to improve things has stayed the same. 108 00:05:31,279 --> 00:05:35,479 Speaker 4: The desire to innovate and be different that was existing 109 00:05:35,520 --> 00:05:38,360 Speaker 4: in nineteen eighty three. I think that goes way back 110 00:05:38,400 --> 00:05:42,520 Speaker 4: to the company's foundation that if you're going to compete 111 00:05:42,560 --> 00:05:45,080 Speaker 4: globally from New Zealand, you're going to have to do 112 00:05:45,120 --> 00:05:47,480 Speaker 4: something different and it's going to have to be better. 113 00:05:47,680 --> 00:05:51,200 Speaker 1: What was it like when Fisher and pie Call separated 114 00:05:51,240 --> 00:05:52,760 Speaker 1: from Fisher and Pikeel Healthcare. 115 00:05:53,160 --> 00:05:54,200 Speaker 2: Is that two thousand and one? 116 00:05:54,320 --> 00:05:56,599 Speaker 4: Yeah, that was two thousand and one. The company split 117 00:05:56,680 --> 00:06:00,240 Speaker 4: into two. Technically, Fisher and Pikele Healthcare was the we're 118 00:06:00,240 --> 00:06:03,600 Speaker 4: the continuing company technically, So the way we think of 119 00:06:03,640 --> 00:06:06,720 Speaker 4: it is we spun off appliances. It's not the common view, 120 00:06:07,120 --> 00:06:09,360 Speaker 4: but that's how we think of it. 121 00:06:09,640 --> 00:06:11,599 Speaker 1: What would you say if we think now to twenty 122 00:06:11,640 --> 00:06:15,960 Speaker 1: twenty four, what would you say is the problem that 123 00:06:16,040 --> 00:06:19,440 Speaker 1: you're trying to solve and what is the potential for 124 00:06:19,560 --> 00:06:20,440 Speaker 1: patients you can reach? 125 00:06:20,480 --> 00:06:21,080 Speaker 2: Worldwide? 126 00:06:21,480 --> 00:06:24,320 Speaker 4: We have a number of, let's say, therapies that the 127 00:06:24,360 --> 00:06:27,719 Speaker 4: business has involved in, and they're all a little bit different, 128 00:06:28,200 --> 00:06:31,600 Speaker 4: but what they all have in common is the idea 129 00:06:31,960 --> 00:06:35,640 Speaker 4: that you want to improve outcomes. And for our business 130 00:06:37,400 --> 00:06:40,719 Speaker 4: that can be a little more complex because for medical products, 131 00:06:41,720 --> 00:06:46,160 Speaker 4: there can be someone paying for it, someone prescribing it, 132 00:06:46,800 --> 00:06:50,000 Speaker 4: someone using it, and then of course the patient. So 133 00:06:50,040 --> 00:06:53,880 Speaker 4: there's four different groups that we're trying to improve outcomes for. 134 00:06:54,760 --> 00:06:57,640 Speaker 4: So that's the consistent thing across all of the therapies. 135 00:06:58,160 --> 00:07:02,240 Speaker 1: Lewis let's break down what business does. I think hospital 136 00:07:02,320 --> 00:07:05,080 Speaker 1: and home care are the two sort of structures if 137 00:07:05,080 --> 00:07:08,240 Speaker 1: you like that you have and in terms of revenue, 138 00:07:08,279 --> 00:07:11,840 Speaker 1: I think it's around sixty two percent for hospital and 139 00:07:11,840 --> 00:07:14,000 Speaker 1: then home would be what about thirty seven percent. 140 00:07:16,000 --> 00:07:19,360 Speaker 2: I see that home care if that's the right word, or. 141 00:07:19,440 --> 00:07:23,080 Speaker 1: Just the home market if you like, is actually growing hugely. 142 00:07:23,760 --> 00:07:27,240 Speaker 1: Is that because we're changing in what we need in 143 00:07:27,280 --> 00:07:29,240 Speaker 1: our lives and what we can do at home, and 144 00:07:29,560 --> 00:07:31,400 Speaker 1: it's taught me through the difference there. 145 00:07:31,640 --> 00:07:34,040 Speaker 4: That's probably a trend and for us, it's probably in 146 00:07:34,040 --> 00:07:36,200 Speaker 4: our future. But when we think of the business and 147 00:07:36,240 --> 00:07:37,920 Speaker 4: we think of hospital and home care, they're kind of 148 00:07:37,960 --> 00:07:42,880 Speaker 4: selling channels and global selling channels, and then within them 149 00:07:42,920 --> 00:07:46,360 Speaker 4: we have different therapies. And within the home care channel, 150 00:07:46,600 --> 00:07:50,960 Speaker 4: we've got obstructive sleep app near where we sell there 151 00:07:51,000 --> 00:07:55,080 Speaker 4: we say masks. And then we've got a developing area 152 00:07:55,120 --> 00:07:58,160 Speaker 4: which is in the early days, which is respiratory care 153 00:07:58,160 --> 00:08:03,720 Speaker 4: in the home target at COPD chronic obstructive palm roy disease. 154 00:08:04,080 --> 00:08:06,119 Speaker 4: And that's in the early days where we have a product, 155 00:08:06,160 --> 00:08:08,240 Speaker 4: we have a therapy, we need to generate more and 156 00:08:08,280 --> 00:08:11,480 Speaker 4: better clinical evidence. Well, you would expect more and more 157 00:08:11,680 --> 00:08:14,920 Speaker 4: of healthcare wherever possible to be delivered in the home 158 00:08:14,960 --> 00:08:18,320 Speaker 4: because it's more cost effective. So we think we're really 159 00:08:18,360 --> 00:08:21,640 Speaker 4: well placed to take advantage of that in that we 160 00:08:21,680 --> 00:08:25,560 Speaker 4: have the hospital business. Patients generally will move from a 161 00:08:25,600 --> 00:08:27,640 Speaker 4: hospital to home or they're going to go hospital and 162 00:08:27,680 --> 00:08:30,640 Speaker 4: back sooner or later. And then you know, combined with 163 00:08:30,680 --> 00:08:32,880 Speaker 4: the home care global distribution, we think we're in a 164 00:08:32,880 --> 00:08:35,040 Speaker 4: real good place and we think, you know, there's good 165 00:08:35,280 --> 00:08:38,120 Speaker 4: promising signs for some of our therapies in the home 166 00:08:38,200 --> 00:08:39,200 Speaker 4: for chronic disease. 167 00:08:40,440 --> 00:08:43,599 Speaker 1: So you'd see the two still being parallel and you 168 00:08:43,600 --> 00:08:46,480 Speaker 1: wouldn't see one overtaken the other like hospital obviously sort 169 00:08:46,480 --> 00:08:47,040 Speaker 1: of dominates. 170 00:08:47,080 --> 00:08:49,160 Speaker 4: Now, yeah, there's ebbs and flows. I mean there was 171 00:08:49,200 --> 00:08:51,440 Speaker 4: a time when we say home care dominated, then there 172 00:08:51,480 --> 00:08:53,720 Speaker 4: was a time when hospital dominated and so on. So 173 00:08:53,760 --> 00:08:55,280 Speaker 4: I mean, I think that's one of the strengths of 174 00:08:55,320 --> 00:08:57,760 Speaker 4: the business is you do have some ebbs and flows 175 00:08:57,800 --> 00:09:00,400 Speaker 4: and some natural sets. 176 00:09:01,480 --> 00:09:03,800 Speaker 1: Let's look at the home market too, because masks is 177 00:09:03,880 --> 00:09:05,520 Speaker 1: one thing that you're quite well known for. 178 00:09:05,559 --> 00:09:08,120 Speaker 2: But I understand this. You've launched a few new ones lately. 179 00:09:08,120 --> 00:09:11,120 Speaker 1: I think this is solo and this is the micro 180 00:09:11,200 --> 00:09:13,679 Speaker 1: nova I think number and is it even fuller one? 181 00:09:13,720 --> 00:09:17,000 Speaker 1: I mean taught me through specialty there, because there's a 182 00:09:17,040 --> 00:09:18,360 Speaker 1: real array now that you have. 183 00:09:18,640 --> 00:09:21,880 Speaker 4: So the whole point of our Osay mask business is 184 00:09:21,920 --> 00:09:24,400 Speaker 4: that we'd like to have a product where the customer 185 00:09:24,440 --> 00:09:26,720 Speaker 4: could be the prescriber could be, the patient could be, 186 00:09:26,800 --> 00:09:30,360 Speaker 4: the payer can see a difference between what our masks 187 00:09:30,400 --> 00:09:35,440 Speaker 4: do and what the competitors' masks do. And Solo does 188 00:09:35,480 --> 00:09:40,440 Speaker 4: that for us by being the first mask globally that 189 00:09:40,600 --> 00:09:42,720 Speaker 4: just automatically adjusts. You can put it on and it 190 00:09:42,760 --> 00:09:46,440 Speaker 4: automatically adjusts. And that's important because patients are using these 191 00:09:46,480 --> 00:09:49,400 Speaker 4: masks all night, every night, or they should anyway. And 192 00:09:49,679 --> 00:09:52,640 Speaker 4: that's all about, first of all, ease of use. You've 193 00:09:52,679 --> 00:09:54,360 Speaker 4: got to be able to put it on properly, so 194 00:09:54,440 --> 00:09:57,480 Speaker 4: it works properly and so it's comfortable. Solo does that 195 00:09:58,040 --> 00:10:02,319 Speaker 4: and by adjusting automatically and then comfort and Solo does 196 00:10:02,320 --> 00:10:07,200 Speaker 4: that again by adjusting automatically, and then the other masks 197 00:10:07,200 --> 00:10:11,439 Speaker 4: you mentioned the Nova range, that's about some we're also 198 00:10:11,600 --> 00:10:13,959 Speaker 4: kind of in a sort of a consumer market here 199 00:10:13,960 --> 00:10:17,559 Speaker 4: now where people have preferences. Some people don't want something 200 00:10:17,720 --> 00:10:20,960 Speaker 4: adjusting automatically. They want to do it themselves, and so 201 00:10:21,080 --> 00:10:24,040 Speaker 4: that's what the Nova range are doing for us. 202 00:10:24,280 --> 00:10:26,800 Speaker 1: In terms of hospital though, one of the areas I 203 00:10:26,800 --> 00:10:29,760 Speaker 1: wanted to talk about was anesthesia. That seems to be 204 00:10:30,240 --> 00:10:33,880 Speaker 1: a growing area. Can you talk me through where that's at. 205 00:10:34,280 --> 00:10:37,559 Speaker 4: So one of our therapies nasal high flowers of respiratory therapy, 206 00:10:37,800 --> 00:10:40,360 Speaker 4: and that's been around for a good do you forget 207 00:10:40,360 --> 00:10:43,600 Speaker 4: exactly now fifteen years or so, and it's always been 208 00:10:43,640 --> 00:10:48,360 Speaker 4: available in anesthesia, and we didn't get as much uptake 209 00:10:48,360 --> 00:10:51,600 Speaker 4: in a anesthesia as we might have liked. So we've 210 00:10:51,640 --> 00:10:54,760 Speaker 4: done two things over the last three or four year 211 00:10:54,840 --> 00:10:58,200 Speaker 4: time frame. And the first one is we've iterated the 212 00:10:58,200 --> 00:11:03,920 Speaker 4: product offering with some consumbles that are specifically for anesthesia 213 00:11:03,920 --> 00:11:09,240 Speaker 4: and targeted at the anesthesia opportunity. And the second thing 214 00:11:09,240 --> 00:11:12,160 Speaker 4: we've done is in our global salesforce, rather than having 215 00:11:12,559 --> 00:11:18,119 Speaker 4: one hospital salesforce, we've split it into a specialist anesthesia 216 00:11:18,240 --> 00:11:20,960 Speaker 4: salesforce in a respiratory salesforce, and that's getting us a 217 00:11:20,960 --> 00:11:23,960 Speaker 4: better result, better growth than the anesthesia component. 218 00:11:24,360 --> 00:11:26,439 Speaker 2: You still see potential in that market. 219 00:11:26,120 --> 00:11:28,880 Speaker 4: Though massive, and across everything we do, we still see 220 00:11:28,920 --> 00:11:34,199 Speaker 4: massive potential. We tend to think about number of patients 221 00:11:34,200 --> 00:11:37,400 Speaker 4: globally that would benefit from our therapy and how and 222 00:11:37,440 --> 00:11:42,200 Speaker 4: how many patients were addressing. So in that anesthesia opportunity, 223 00:11:42,960 --> 00:11:46,599 Speaker 4: we conservatively, conservatively say at least fifty million patients a 224 00:11:46,679 --> 00:11:50,720 Speaker 4: year would benefit globally, and we don't get anywhere near that. 225 00:11:51,280 --> 00:11:54,880 Speaker 4: In respiratory opti flow nasal high flow, we'd say that's 226 00:11:54,880 --> 00:11:57,960 Speaker 4: at least fifty million. So combine that's one hundred million patients. 227 00:11:58,280 --> 00:12:01,360 Speaker 4: Last year we treated about six million. So you know, 228 00:12:01,360 --> 00:12:02,480 Speaker 4: we've got a long way to go. 229 00:12:03,240 --> 00:12:04,960 Speaker 1: And what is it you have to do? Is it 230 00:12:05,280 --> 00:12:08,640 Speaker 1: talking to clinicians? How do you know? 231 00:12:08,840 --> 00:12:09,120 Speaker 2: Grow? 232 00:12:09,480 --> 00:12:11,679 Speaker 4: Yeah, this is the core of our business and I 233 00:12:11,679 --> 00:12:14,560 Speaker 4: think it's one of the strengths. It's about changing clinical practice. 234 00:12:14,920 --> 00:12:18,480 Speaker 4: You used to treat patients like this. Now if you 235 00:12:18,520 --> 00:12:22,240 Speaker 4: treat them like that, you can get better outcomes. And 236 00:12:23,160 --> 00:12:26,480 Speaker 4: that no matter what you do is really it does 237 00:12:26,559 --> 00:12:31,160 Speaker 4: boil down to prescriber by prescriber, hospital by hospital, physician 238 00:12:31,240 --> 00:12:37,480 Speaker 4: by physician. It's helped with clinical evidence. Stronger clinical evidence 239 00:12:37,640 --> 00:12:40,600 Speaker 4: makes it a more efficient process to change clinical help 240 00:12:40,720 --> 00:12:46,360 Speaker 4: change clinical practice, clinical practice guidelines or another step. You know, 241 00:12:46,440 --> 00:12:49,920 Speaker 4: when you have enough clinical evidence professional bodies or generate 242 00:12:49,960 --> 00:12:53,160 Speaker 4: clinical practice guidelines. That helps, But it's just if you 243 00:12:53,200 --> 00:12:56,520 Speaker 4: look at our penetration for nasal high flow, you know 244 00:12:56,880 --> 00:13:00,160 Speaker 4: we're not even ten percent penetrated. It's fifteen years and 245 00:13:00,480 --> 00:13:04,240 Speaker 4: clinical practice guidelines for respiratory applications first started coming out 246 00:13:04,480 --> 00:13:08,160 Speaker 4: maybe three or four years ago. So it is a 247 00:13:08,160 --> 00:13:10,959 Speaker 4: long process. But you know, the upside of that is 248 00:13:11,320 --> 00:13:14,800 Speaker 4: you've got a long runway and you know it's sticky 249 00:13:14,920 --> 00:13:16,080 Speaker 4: once you've changed it. 250 00:13:16,160 --> 00:13:18,240 Speaker 1: Once you've done that. The other thing too, though, the 251 00:13:18,280 --> 00:13:20,839 Speaker 1: people that are selling in your salesforce, that are selling 252 00:13:20,880 --> 00:13:24,440 Speaker 1: in these therapies and products and systems and the like, 253 00:13:25,080 --> 00:13:28,480 Speaker 1: they have to be pretty amazing if you like, I 254 00:13:28,480 --> 00:13:31,240 Speaker 1: mean not just your average salesperson. If I can say 255 00:13:31,280 --> 00:13:32,400 Speaker 1: to those tombs. 256 00:13:32,080 --> 00:13:33,760 Speaker 4: I mean, it sounds like they've got. 257 00:13:33,679 --> 00:13:40,120 Speaker 1: To you to you know, a clinician who may have restraints, 258 00:13:40,559 --> 00:13:43,840 Speaker 1: absolutely right, actually politics, you name it. 259 00:13:44,440 --> 00:13:49,320 Speaker 4: Yeah, our salespeople are engaging with physicians and at different levels, 260 00:13:49,360 --> 00:13:52,400 Speaker 4: they're engaging with clinical data and they're having debates with physicians. 261 00:13:52,440 --> 00:13:54,600 Speaker 4: And we think one of the key strengths of our 262 00:13:54,600 --> 00:13:58,600 Speaker 4: business is that that's really hard to do. It's quite 263 00:13:58,640 --> 00:14:02,079 Speaker 4: complex and one of the hard and complex parts is 264 00:14:02,440 --> 00:14:04,880 Speaker 4: upskilling and training your salesforce, and we think that's a 265 00:14:04,920 --> 00:14:08,200 Speaker 4: core strength so that they're able and capable of doing that. 266 00:14:09,040 --> 00:14:11,600 Speaker 1: If we look at the worldwide markets that you're in, 267 00:14:11,760 --> 00:14:16,320 Speaker 1: I think there's Asia Pacific, does Europe, There's North America. 268 00:14:16,360 --> 00:14:17,800 Speaker 2: It probably would be the big ones. 269 00:14:18,679 --> 00:14:21,840 Speaker 1: I mean, they're developing and developed country, so you've got 270 00:14:21,960 --> 00:14:24,560 Speaker 1: quite a mix there. So how do you balance what 271 00:14:24,760 --> 00:14:28,680 Speaker 1: is perhaps a quite solid cash cow with another market 272 00:14:28,680 --> 00:14:32,280 Speaker 1: that's got potential and you're thinking about innovating products for it. 273 00:14:32,680 --> 00:14:33,840 Speaker 2: How do you strike that? 274 00:14:34,400 --> 00:14:38,240 Speaker 4: Really good question, and that's an ongoing topic for us. 275 00:14:38,840 --> 00:14:42,120 Speaker 4: We've got a couple of underlying rules. One is sustainable 276 00:14:42,160 --> 00:14:47,240 Speaker 4: profitable growth, and the whole business is built on that concept. 277 00:14:47,480 --> 00:14:49,560 Speaker 4: Everything we do we want it to be sustainable, we 278 00:14:49,600 --> 00:14:50,680 Speaker 4: want to be able to do it for a very 279 00:14:50,680 --> 00:14:53,440 Speaker 4: long time, and we want it to be profitable and 280 00:14:53,480 --> 00:14:55,840 Speaker 4: we want it to go. So one of the ways 281 00:14:55,840 --> 00:15:00,360 Speaker 4: we balance that is by adding people, adding salespeople, R 282 00:15:00,400 --> 00:15:03,760 Speaker 4: and D to match our revenue growth. Because you can 283 00:15:03,800 --> 00:15:06,360 Speaker 4: do that forever. It's when one gets ahead of the 284 00:15:06,400 --> 00:15:10,800 Speaker 4: other you start to run into questions of sustainability. So 285 00:15:11,360 --> 00:15:14,360 Speaker 4: we start off by matching our expense over the long term. 286 00:15:14,400 --> 00:15:17,000 Speaker 4: We can't do it on every twelve months, but over 287 00:15:17,520 --> 00:15:20,360 Speaker 4: several years we'll be trying to match our expense growth 288 00:15:20,360 --> 00:15:22,960 Speaker 4: to our revenue growth. And then the debate is about 289 00:15:23,000 --> 00:15:26,680 Speaker 4: where where to put it? Where to put it? Typically 290 00:15:27,640 --> 00:15:33,080 Speaker 4: for the new businesses we will we will be adding 291 00:15:33,160 --> 00:15:36,520 Speaker 4: expenses to match the revenue growth. 292 00:15:36,720 --> 00:15:41,200 Speaker 1: Still, are there particular markets is more potential or that 293 00:15:41,240 --> 00:15:41,920 Speaker 1: you're more. 294 00:15:41,720 --> 00:15:43,880 Speaker 2: Interested in thom No, not really. 295 00:15:44,560 --> 00:15:47,000 Speaker 4: It's kind of interesting if you take the world's if 296 00:15:47,000 --> 00:15:50,240 Speaker 4: you rank the world's countries by GDP and you look 297 00:15:50,240 --> 00:15:53,720 Speaker 4: at the top fifty, that pretty much reflects our business 298 00:15:53,760 --> 00:15:56,080 Speaker 4: in those countries. Yeah, pretty much the same order. 299 00:15:56,720 --> 00:15:58,680 Speaker 1: So it was with sleep at yea. Then what is 300 00:15:58,720 --> 00:16:01,120 Speaker 1: the potential them? And how many people in the world 301 00:16:01,280 --> 00:16:04,400 Speaker 1: suffer from that? I mean it's obviously something you've seen 302 00:16:04,440 --> 00:16:06,960 Speaker 1: as a need, but what is the potential? 303 00:16:07,000 --> 00:16:10,080 Speaker 4: I mean very hard one to say. You see numbers 304 00:16:10,160 --> 00:16:13,920 Speaker 4: are banded around around the hundreds of millions, nine hundred 305 00:16:13,960 --> 00:16:17,320 Speaker 4: million people a year. We're a little bit more conservative 306 00:16:17,320 --> 00:16:20,040 Speaker 4: and we say potentially one hundred million a year maybe. 307 00:16:20,040 --> 00:16:22,520 Speaker 2: And what about the respiratory aspects of the business. I mean, 308 00:16:22,560 --> 00:16:24,680 Speaker 2: that's sort of a lot more broad well, it's. 309 00:16:24,560 --> 00:16:26,880 Speaker 4: A bit of a moving target. At the moment, we'd 310 00:16:26,880 --> 00:16:30,200 Speaker 4: say over one hundred million, but it's a little bit 311 00:16:30,200 --> 00:16:33,560 Speaker 4: of a moving target in that as you get more 312 00:16:33,600 --> 00:16:38,840 Speaker 4: clinical evidence, you can expand that possible market, as you 313 00:16:39,200 --> 00:16:42,040 Speaker 4: iterate the therapies and the products and the technology, so 314 00:16:42,080 --> 00:16:44,800 Speaker 4: again you can expand the reach of that product. So 315 00:16:46,440 --> 00:16:48,920 Speaker 4: you know, our main job is to make sure we're 316 00:16:48,960 --> 00:16:53,480 Speaker 4: nowhere near penetrated and that's about clinical research and product development. 317 00:16:54,400 --> 00:16:58,240 Speaker 1: So we're looking at the manufacturing part of the site 318 00:16:58,280 --> 00:17:00,840 Speaker 1: here it is Tamaki. Obviously this is the only place 319 00:17:00,880 --> 00:17:03,600 Speaker 1: in the world you also manufacture in Mexico and China. 320 00:17:03,960 --> 00:17:06,720 Speaker 2: What do we have here though, So what we're. 321 00:17:06,600 --> 00:17:14,320 Speaker 4: Looking at right here is adult intensive consumables being assembled 322 00:17:14,520 --> 00:17:15,199 Speaker 4: into kits. 323 00:17:15,840 --> 00:17:17,040 Speaker 2: And here we are in New Zealand. 324 00:17:17,040 --> 00:17:19,560 Speaker 1: But is this still somewhere which it's a real hub 325 00:17:19,560 --> 00:17:20,600 Speaker 1: for manufacturer. 326 00:17:20,720 --> 00:17:24,080 Speaker 4: So the plan is that we'll continue to grow manufacturing 327 00:17:24,080 --> 00:17:28,040 Speaker 4: in New Zealand, but for geographical risk mitigation, we'll grow 328 00:17:28,080 --> 00:17:31,439 Speaker 4: our manufacturing outside New Zealand at a higher rate. So 329 00:17:31,480 --> 00:17:33,879 Speaker 4: we'll keep growing here, but we'll be growing Mexico, China 330 00:17:34,080 --> 00:17:36,520 Speaker 4: probably other places over time. 331 00:17:36,840 --> 00:17:39,800 Speaker 1: And how important is the aspect of the business of manufacturing. 332 00:17:40,560 --> 00:17:42,679 Speaker 4: Well, we sell things, so we make the things to sell, 333 00:17:43,920 --> 00:17:47,200 Speaker 4: So it's an absolutely fundamental part of it. And then 334 00:17:47,240 --> 00:17:50,439 Speaker 4: for a lot of what we do, it's how you 335 00:17:50,480 --> 00:17:52,480 Speaker 4: make it and how you make it cost effectively. That 336 00:17:52,720 --> 00:17:53,960 Speaker 4: is the challenging. 337 00:17:53,520 --> 00:17:56,760 Speaker 2: Part, especially from here in New Zealand. 338 00:17:58,920 --> 00:18:01,159 Speaker 4: Well, we do have the tyranny of distance in New Zealand, 339 00:18:01,200 --> 00:18:05,280 Speaker 4: and that's raw materials and product out. Yeah, it's not 340 00:18:05,320 --> 00:18:06,040 Speaker 4: super helpful. 341 00:18:06,440 --> 00:18:09,560 Speaker 1: Just lois thinking about the full year results, which the 342 00:18:09,600 --> 00:18:11,639 Speaker 1: company released I think was the end of May, so 343 00:18:11,680 --> 00:18:14,639 Speaker 1: only a couple of months ago. At the time, I 344 00:18:14,680 --> 00:18:18,480 Speaker 1: think operating revenue was up ten percent, and then I 345 00:18:18,520 --> 00:18:21,600 Speaker 1: think net profit after texts probably suffered a little bit. 346 00:18:21,640 --> 00:18:23,760 Speaker 1: I think it was down forty seven percent. But there 347 00:18:23,840 --> 00:18:26,800 Speaker 1: was some abnormals there. There was the Korreka site being revalued, 348 00:18:26,840 --> 00:18:29,520 Speaker 1: There was some accounting I think which was about nineteen 349 00:18:29,520 --> 00:18:31,879 Speaker 1: point three million, and then of course you had a 350 00:18:31,960 --> 00:18:34,199 Speaker 1: recall which I think was going to be twelve million 351 00:18:34,359 --> 00:18:36,400 Speaker 1: and that became about twenty million. 352 00:18:37,160 --> 00:18:38,240 Speaker 4: So that we had a recall. 353 00:18:38,320 --> 00:18:41,679 Speaker 1: Yeah, yeah, so that was probably you were trying to 354 00:18:41,680 --> 00:18:43,960 Speaker 1: get back to having that lovely gross margin that you 355 00:18:44,040 --> 00:18:47,000 Speaker 1: talked about before as sixty five percent, And just for listeners, 356 00:18:47,000 --> 00:18:49,720 Speaker 1: the gross margin is when it's a proportion of revenue 357 00:18:49,760 --> 00:18:51,960 Speaker 1: after you've stripped out all the costs and the like. 358 00:18:52,480 --> 00:18:54,600 Speaker 1: You were hoping to get back to that, but was 359 00:18:54,640 --> 00:18:55,880 Speaker 1: it because of the abnormals. 360 00:18:55,920 --> 00:18:56,520 Speaker 2: Didn't quite. 361 00:18:56,920 --> 00:18:58,760 Speaker 4: So the first thing for us is when we look 362 00:18:58,800 --> 00:19:01,480 Speaker 4: at revenue, you still got co effects going on. So 363 00:19:01,680 --> 00:19:04,160 Speaker 4: for FY twenty three, the year we just finished, we're 364 00:19:04,200 --> 00:19:07,359 Speaker 4: lapping FY twenty four and you've got some COVID coming 365 00:19:07,359 --> 00:19:10,159 Speaker 4: in and going andy twenty three, so it's hard to 366 00:19:10,200 --> 00:19:13,600 Speaker 4: read much into FY twenty four's revenue growth. And then 367 00:19:13,720 --> 00:19:15,800 Speaker 4: the next thing, when we get to gross margin, that's 368 00:19:15,800 --> 00:19:17,800 Speaker 4: the difference between what it costs us to make something 369 00:19:18,000 --> 00:19:21,840 Speaker 4: and what we sell it and a game, we've still 370 00:19:21,880 --> 00:19:24,320 Speaker 4: got this long tail from COVID. Get sick of talking 371 00:19:24,320 --> 00:19:26,960 Speaker 4: about it sometimes. Anyway, we've still got a long tail. 372 00:19:26,960 --> 00:19:30,560 Speaker 4: We're during COVID. Our only priorities make as much as possible, 373 00:19:30,960 --> 00:19:38,439 Speaker 4: as quickly as possible, and that's still hurting gross margin. 374 00:19:38,760 --> 00:19:40,320 Speaker 4: But we think we just need to get back to 375 00:19:40,359 --> 00:19:42,560 Speaker 4: our normal behavior and gross margin will get back to 376 00:19:43,040 --> 00:19:46,199 Speaker 4: where it needs to be. So that's the lingering effect 377 00:19:46,240 --> 00:19:50,240 Speaker 4: on gross margin. And then the next one down is 378 00:19:50,240 --> 00:19:52,920 Speaker 4: when we take all of our operating expenses, that's the 379 00:19:52,960 --> 00:19:56,840 Speaker 4: one that turns into the operating margin. And then the 380 00:19:56,880 --> 00:20:00,480 Speaker 4: next step down is your net profit after tax. The 381 00:20:00,520 --> 00:20:02,720 Speaker 4: net profit after tax is the one that was affected 382 00:20:02,760 --> 00:20:09,480 Speaker 4: by land revaluation and recall and building depreciation, kind of 383 00:20:09,520 --> 00:20:12,400 Speaker 4: all financial things and a little bit unusual for us, 384 00:20:14,040 --> 00:20:15,479 Speaker 4: you know, to have all these one offs. 385 00:20:15,840 --> 00:20:16,680 Speaker 2: Yeah, that's what I mean. 386 00:20:16,720 --> 00:20:19,640 Speaker 4: So we're kind of fundamentally for the business looking through 387 00:20:19,760 --> 00:20:22,800 Speaker 4: all all of those. Actually, on a twelve month basis, 388 00:20:22,800 --> 00:20:26,879 Speaker 4: we're looking through those counting one offs, and then on 389 00:20:26,920 --> 00:20:29,080 Speaker 4: a three to four year timeframe we're kind of looking 390 00:20:29,119 --> 00:20:32,600 Speaker 4: through the gross margin impact as well. We just expect 391 00:20:32,600 --> 00:20:34,880 Speaker 4: it to naturally improve over the next few years. 392 00:20:35,400 --> 00:20:38,240 Speaker 1: And when you made the new announce the result you 393 00:20:38,320 --> 00:20:40,640 Speaker 1: talked about, you did give a forecast at the time. 394 00:20:40,680 --> 00:20:43,040 Speaker 1: I think it was between one point nine and two 395 00:20:43,119 --> 00:20:48,800 Speaker 1: billion as an operating revenue, and that was quite impressive 396 00:20:48,880 --> 00:20:51,879 Speaker 1: and also analysts seem to like that. One thing I 397 00:20:51,920 --> 00:20:54,400 Speaker 1: did note though, that it doesn't take into account if 398 00:20:54,440 --> 00:20:56,800 Speaker 1: we have another respiratory event. 399 00:20:56,960 --> 00:20:58,720 Speaker 2: If you and I would have thought. 400 00:21:00,000 --> 00:21:02,520 Speaker 1: Perhaps you're not going to say it publicly, but you'd 401 00:21:02,520 --> 00:21:06,280 Speaker 1: be monitoring and you'd be predicting in the business you're in. 402 00:21:06,640 --> 00:21:08,520 Speaker 2: What could be happening, what's next? 403 00:21:09,040 --> 00:21:11,240 Speaker 4: We can't predict it, And you're absolutely right. In the 404 00:21:11,240 --> 00:21:14,480 Speaker 4: guidance we said this doesn't include any respiratory events during 405 00:21:14,520 --> 00:21:17,120 Speaker 4: the year this guidance, and that's because we can't predict it. 406 00:21:18,080 --> 00:21:21,280 Speaker 4: You know, we absolutely can't. We could maybe see early signs, 407 00:21:21,280 --> 00:21:23,199 Speaker 4: but then where it goes from there. I mean, the 408 00:21:23,320 --> 00:21:26,640 Speaker 4: history over the last five years has been we can't 409 00:21:26,680 --> 00:21:30,359 Speaker 4: predict where it's going. And as a business, you know, 410 00:21:30,359 --> 00:21:33,720 Speaker 4: it's a case of you be ready for the worst 411 00:21:33,760 --> 00:21:34,960 Speaker 4: and plan for the best. 412 00:21:35,960 --> 00:21:38,440 Speaker 1: Would you have any idea or you must have thought 413 00:21:38,480 --> 00:21:40,639 Speaker 1: about what kind of things can happen to the world. 414 00:21:40,760 --> 00:21:45,240 Speaker 1: I mean, you've got amazing scientists, innovation, lots of experience. 415 00:21:45,760 --> 00:21:49,240 Speaker 4: No, we can't. We cannot predict that. Look when you're 416 00:21:49,240 --> 00:21:51,400 Speaker 4: trying to give guides for this business, are you're trying 417 00:21:51,440 --> 00:21:56,919 Speaker 4: to predict hospital admissions? You're trying to predict seasonal respiratory 418 00:21:56,960 --> 00:22:01,840 Speaker 4: hospitalizations all around the world, the normal variations in a business. 419 00:22:02,160 --> 00:22:04,480 Speaker 4: That's you know, now, we can't do. 420 00:22:04,440 --> 00:22:06,800 Speaker 1: You see any other challenges or risks that we haven't 421 00:22:06,840 --> 00:22:09,560 Speaker 1: probably covered. I mean, inflation has obviously been a big 422 00:22:09,560 --> 00:22:11,879 Speaker 1: thing for many global businesses. 423 00:22:12,200 --> 00:22:14,560 Speaker 4: I don't think inflation is fundamental for us. I mean, 424 00:22:15,200 --> 00:22:20,920 Speaker 4: we do have the ability to raise pricing, but there's 425 00:22:20,920 --> 00:22:23,720 Speaker 4: always a lag. So I think inflation is actually fairly normal. 426 00:22:23,760 --> 00:22:25,600 Speaker 4: It comes and it goes. We've just been through a 427 00:22:25,600 --> 00:22:28,840 Speaker 4: fairly docile period, so we think of that as fairly normal, 428 00:22:28,920 --> 00:22:31,399 Speaker 4: and it's not something that would really change our behavior 429 00:22:31,480 --> 00:22:35,000 Speaker 4: so much in any way. Exchange rate can impact us, 430 00:22:35,040 --> 00:22:38,400 Speaker 4: but that's in the same camp. You know. Again, you've 431 00:22:38,400 --> 00:22:40,159 Speaker 4: got to think over the long term. We're not going 432 00:22:40,200 --> 00:22:42,400 Speaker 4: to modify our behavior over one years or two years 433 00:22:42,440 --> 00:22:46,800 Speaker 4: or three years because of inflation or exchange rates or 434 00:22:46,840 --> 00:22:47,560 Speaker 4: anything like that. 435 00:22:48,640 --> 00:22:52,800 Speaker 1: What excites you about the next phase for First and 436 00:22:52,840 --> 00:22:53,879 Speaker 1: Pike or healthcare? 437 00:22:54,320 --> 00:23:00,720 Speaker 4: Oh, great question. It's kind of like picking your face child, 438 00:23:01,119 --> 00:23:04,760 Speaker 4: so I can't go there. I think the exciting thing 439 00:23:05,040 --> 00:23:09,399 Speaker 4: is we've got a track record. Every year it looks 440 00:23:09,440 --> 00:23:13,639 Speaker 4: more and more challenging to maintain that track record, And 441 00:23:13,680 --> 00:23:15,680 Speaker 4: I think the exciting thing is over the long term. Yeah, 442 00:23:15,680 --> 00:23:16,600 Speaker 4: I definitely think we can. 443 00:23:16,840 --> 00:23:18,280 Speaker 2: You've got some ambitious targets. 444 00:23:18,320 --> 00:23:21,679 Speaker 1: I mean, doubling your growth every five years, that's something 445 00:23:21,680 --> 00:23:26,720 Speaker 1: you're going to continue with. It's just a little bit there, yeah, okay, 446 00:23:27,520 --> 00:23:30,960 Speaker 1: but that is something that the business still will that's what. 447 00:23:30,880 --> 00:23:35,399 Speaker 4: We aim at over and over and over and to 448 00:23:35,560 --> 00:23:37,680 Speaker 4: do that, we've just talked about some of the time 449 00:23:37,720 --> 00:23:39,520 Speaker 4: frames involved. You know, you've got to be twenty or 450 00:23:39,520 --> 00:23:40,600 Speaker 4: thirty years ahead. 451 00:23:40,840 --> 00:23:41,479 Speaker 2: Lewis, we're here. 452 00:23:41,520 --> 00:23:45,320 Speaker 1: It is Tummocky and it's an incredibly impressive site. It's 453 00:23:45,440 --> 00:23:49,119 Speaker 1: nearly near completion, but I know there's a next phase 454 00:23:49,160 --> 00:23:51,879 Speaker 1: for Fisher and Pikeal Healthcare and you've actually got a 455 00:23:52,040 --> 00:23:54,680 Speaker 1: very big site at Kraka, which is south of Auckland. 456 00:23:54,880 --> 00:23:57,000 Speaker 1: Tell us about why you're doing that. 457 00:23:57,840 --> 00:24:01,360 Speaker 4: Well, we expect the site to be full in five 458 00:24:01,440 --> 00:24:04,000 Speaker 4: or six years time. And the fundamental is if you're 459 00:24:04,000 --> 00:24:06,280 Speaker 4: hoping to double your business in size every five or 460 00:24:06,320 --> 00:24:09,159 Speaker 4: six years, we need to start thinking now about what 461 00:24:09,240 --> 00:24:13,160 Speaker 4: happens after this site. So hence the Karraker site that's 462 00:24:13,160 --> 00:24:15,440 Speaker 4: about two and a half times the size of the site. 463 00:24:15,800 --> 00:24:18,240 Speaker 4: Once again, it comes back to that fundamental. If you're 464 00:24:18,280 --> 00:24:21,159 Speaker 4: trying to double in size every five or six years, 465 00:24:21,680 --> 00:24:25,840 Speaker 4: this is one hundred acres. You're looking at pretty substantial size, 466 00:24:25,880 --> 00:24:30,919 Speaker 4: which is kraker to continue that growth trajectory, and we 467 00:24:31,040 --> 00:24:33,880 Speaker 4: much prefer the idea of being on the same site 468 00:24:33,920 --> 00:24:36,240 Speaker 4: then scattered in little bits all over it, all out 469 00:24:36,240 --> 00:24:36,679 Speaker 4: of the place. 470 00:24:37,240 --> 00:24:39,560 Speaker 1: So with that new site, then that will take some 471 00:24:39,760 --> 00:24:42,760 Speaker 1: time to develop. I think it's three stages as the plan. 472 00:24:43,920 --> 00:24:46,240 Speaker 4: Well that I'd call that an early stage plan. But 473 00:24:47,240 --> 00:24:50,320 Speaker 4: you know, one of the challenges there is how much 474 00:24:50,400 --> 00:24:53,560 Speaker 4: to do at once and how much to do and 475 00:24:53,560 --> 00:24:55,560 Speaker 4: how to stage. I think that's one of the bridges 476 00:24:55,560 --> 00:24:56,040 Speaker 4: we're yet to. 477 00:24:56,040 --> 00:24:59,639 Speaker 1: Cross because thirty years out, how does anyone in this 478 00:24:59,720 --> 00:25:02,080 Speaker 1: day age plan for that given how quick? 479 00:25:03,080 --> 00:25:04,479 Speaker 4: Yeah, so the way we think it is we try 480 00:25:04,520 --> 00:25:06,520 Speaker 4: and keep our options open. We want to have the option. 481 00:25:07,119 --> 00:25:10,760 Speaker 1: Okay, so that's the reason for getting the site now 482 00:25:10,920 --> 00:25:11,840 Speaker 1: and thinking ahead. 483 00:25:12,280 --> 00:25:15,040 Speaker 4: That's right, that's right. And you know we're building time 484 00:25:15,080 --> 00:25:17,080 Speaker 4: frames in New Zealand, are building like this. When we 485 00:25:17,080 --> 00:25:19,600 Speaker 4: start building, it's about a four year timeframe, so you've 486 00:25:19,640 --> 00:25:22,640 Speaker 4: got to be thinking ahead five or six years because 487 00:25:22,640 --> 00:25:24,320 Speaker 4: the last thing we want is for our growth to 488 00:25:24,359 --> 00:25:26,720 Speaker 4: be compromised because we haven't got anywhere to put people. 489 00:25:27,880 --> 00:25:32,000 Speaker 1: Any idea what sort of how many people a site 490 00:25:32,040 --> 00:25:33,360 Speaker 1: like that would house, or how many. 491 00:25:33,160 --> 00:25:37,600 Speaker 4: Buildings even it'd be twelve buildings this size ultimately, so 492 00:25:37,680 --> 00:25:40,000 Speaker 4: we will start with a full site plan and then 493 00:25:40,000 --> 00:25:42,720 Speaker 4: we just have to work out how to execute on 494 00:25:42,760 --> 00:25:46,320 Speaker 4: that full site plan in the most sensible way. So 495 00:25:46,320 --> 00:25:49,399 Speaker 4: it would be twelve buildings. This is five if you 496 00:25:49,400 --> 00:25:52,879 Speaker 4: think this is let's say this fall would be seven 497 00:25:52,960 --> 00:25:54,959 Speaker 4: thousand people two and a half times out. 498 00:25:55,600 --> 00:25:58,440 Speaker 1: Lewis as a listed company, and I suppose you could 499 00:25:58,440 --> 00:26:02,440 Speaker 1: say the tech sector to something, there can be lots 500 00:26:02,480 --> 00:26:05,240 Speaker 1: of distractions. It can be very short term because you're listed. 501 00:26:05,400 --> 00:26:08,119 Speaker 1: Investors want returns, et cetera, et cetera. You've got the 502 00:26:08,240 --> 00:26:10,239 Speaker 1: likes of the US markets within video and the light 503 00:26:10,320 --> 00:26:14,520 Speaker 1: going gangbusters. But I mean a company like yours always 504 00:26:14,560 --> 00:26:16,679 Speaker 1: has to think about the longer term and the R 505 00:26:16,720 --> 00:26:20,679 Speaker 1: and D that's implicated there. But how do you not 506 00:26:20,760 --> 00:26:23,119 Speaker 1: get distracted when there's all this noise around you? 507 00:26:23,680 --> 00:26:25,520 Speaker 4: Really good question, because you're right, you know it's called 508 00:26:25,520 --> 00:26:28,639 Speaker 4: a daily news cycle and you and your reports and 509 00:26:28,680 --> 00:26:31,560 Speaker 4: all that kind of thing. And we've talked about the 510 00:26:31,640 --> 00:26:33,359 Speaker 4: nature for our business. You can have five to ten 511 00:26:33,440 --> 00:26:35,359 Speaker 4: year R and D programs. You can have five to 512 00:26:35,400 --> 00:26:41,120 Speaker 4: ten year clinical programs. You can be training clinical sales teams, 513 00:26:41,160 --> 00:26:43,280 Speaker 4: and then you're calling on hospitals around the world. It's 514 00:26:43,320 --> 00:26:47,040 Speaker 4: quite a long cycle, so you have to think ahead. 515 00:26:47,440 --> 00:26:50,560 Speaker 4: We do think and plan long term. We do have 516 00:26:50,840 --> 00:26:55,320 Speaker 4: a long term plan that runs out thirty years, and 517 00:26:55,840 --> 00:26:58,120 Speaker 4: part of our discipline is to stick to that long 518 00:26:58,200 --> 00:27:03,159 Speaker 4: term plan. We've got all the opportunity, we know how 519 00:27:03,200 --> 00:27:05,399 Speaker 4: to execute on them, and part of the discipline is 520 00:27:05,400 --> 00:27:08,359 Speaker 4: not being distracted by all those things. Also, sometimes, as 521 00:27:08,400 --> 00:27:11,720 Speaker 4: you pointed out from the financial market, and you know, 522 00:27:11,760 --> 00:27:13,760 Speaker 4: we've talked about our gross margin is not where we 523 00:27:13,800 --> 00:27:16,040 Speaker 4: want it to be. We could divert all sorts of 524 00:27:16,080 --> 00:27:19,439 Speaker 4: resources and improve that. We could have all of our 525 00:27:19,480 --> 00:27:22,760 Speaker 4: salespeople working on pricing to get our gross margin where 526 00:27:22,800 --> 00:27:25,520 Speaker 4: we want it to be and one year's time or 527 00:27:25,560 --> 00:27:27,560 Speaker 4: two years time, but we're not sticking to the long 528 00:27:27,640 --> 00:27:30,600 Speaker 4: term plan. We're not diverting resources into that, and we're 529 00:27:30,600 --> 00:27:33,480 Speaker 4: just going to revert to our normal behavior and gross 530 00:27:33,520 --> 00:27:36,080 Speaker 4: margins should do what it's normally done, which is steadily 531 00:27:36,119 --> 00:27:39,200 Speaker 4: improve very yet rather than I think the whole point 532 00:27:39,200 --> 00:27:41,560 Speaker 4: of that is not diverting resources, but staying on the 533 00:27:41,560 --> 00:27:44,600 Speaker 4: long term plan and it does take discipline. We do 534 00:27:44,680 --> 00:27:47,240 Speaker 4: cop flat for it from time to time, but we 535 00:27:47,280 --> 00:27:51,040 Speaker 4: think in the long run it's better to stick to 536 00:27:51,520 --> 00:27:52,920 Speaker 4: you know where the opportunities are. 537 00:27:53,359 --> 00:27:54,920 Speaker 2: Is we anything that keeps you awake at night? 538 00:27:55,080 --> 00:27:55,199 Speaker 3: Well? 539 00:27:55,240 --> 00:27:57,520 Speaker 4: I never know how to answer that one either, because 540 00:27:59,600 --> 00:28:03,760 Speaker 4: on the one hand, I do worry about everything, absolutely everything. 541 00:28:04,359 --> 00:28:07,679 Speaker 4: On the other hand, I sleep well. You have to 542 00:28:07,960 --> 00:28:10,000 Speaker 4: or you can't come to work the next day if 543 00:28:10,000 --> 00:28:10,680 Speaker 4: you're not sleeping. 544 00:28:11,840 --> 00:28:13,560 Speaker 2: So Lewis, thanks for today. 545 00:28:13,640 --> 00:28:15,440 Speaker 1: It's been great to actually come on to the East 546 00:28:15,480 --> 00:28:19,040 Speaker 1: Tummocky site and see some of the team, understand a 547 00:28:19,080 --> 00:28:21,439 Speaker 1: bit more about the product suite and the like, and 548 00:28:21,480 --> 00:28:22,840 Speaker 1: it does all sound very exciting. 549 00:28:22,880 --> 00:28:24,160 Speaker 2: So thanks for having us today. 550 00:28:24,240 --> 00:28:26,200 Speaker 4: Thank you for making the effort. I do appreciate it.