Interview with Hydrix (ASX:HYD) Executive Chairman, Gavin Coote

Ben Williamson
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[00:00:00] Ben Williamson: Welcome everyone to anotherepisode of the Chairman's List. Today we've got Gavin Coote, from Hydrix. Gavin, how are you?

[00:00:07] Gavin Coote: I'm well, Ben. Thanks for havingme on.

[00:00:09] Ben Williamson: No worries. Now, no one willprobably know this, who's listening, but Gavin and I have actually known eachother for a few years. Meeting in the boardroom of PWC's office a while ago.What was that? Six, seven years ago, from memory?

[00:00:23] Gavin Coote: I think you're probably aboutright there, Ben.

[00:00:25] Ben Williamson: It's definitely before theFresh journey for me. Was that before you got involved with Hydrix?

[00:00:30] Gavin Coote: It may have just been at thefront end of it. It's been, just over five years, five and a half plus yearssince I've been involved with Hydrix.

[00:00:38] Ben Williamson: Nice. So, I guess, for peoplewho don't know, give us a little bit of a background on Hydrix. What's theelevator pitch on it, to start with?

[00:00:45] Gavin Coote: Yeah, it's a great place tostart. We like to talk about Hydrix as a global diversified MedTech companytoday. And it's got some really interesting elements to what's a group businesspublicly listed. From a MedTech perspective, our core business is a highlyspecialized product development services organization that offers productdesign and engineering to clients to help them build world first products. Andwe do that on a fee for service basis. And over the last few years we've addeda couple of extra segments to the group, one being a ventures arm, which likesto invest selectively in some of those clients we do work for, that are inearly stage MedTech companies, and we think have got great great potential. Andthe most recent the third part of the business is the Hydrix medical component,which we've set up as a distribution business to bring world first anddisruptive cardiovascular technologies to market. And there's some really,really interesting things we're doing there, and I think there's some realpotential for catalyst of growth in the future. We'll talk a little bit moreabout that as we get along and unpack it.

[00:01:45] Ben Williamson: So, three arms of thebusiness, you've got the services business, you've got the medical devicebusiness, and you've got the venture side. Does that put cash in as well or doyou look at it from a "we pay for the development and bending our time asequity", or is it a bit of both, depends on the circumstance?

[00:02:07] Gavin Coote: Yeah, it's reallysituation-specific, Ben. We've got instances where we've invested cash andwe're doing a really major product development program. There are other caseswhere we've got a combination of both, where there's cash and sweat equitygoing in. But the key thing here is that we will only invest in clients. We'renot a general venture capitalist company. These are clients who we are helpingto both de-risk and accelerate their product development. And, invariably,these concepts, new scientific discoveries and it's all about how you take thatscience and create a commercial product that you can bring to market andhopefully become the new gold standard in care, for whatever the end purpose orapplication is. So, it's really a pretty high powered, pretty special stuff.It's really fantastic to be involved in more than just the design andengineering services fee aspect of it, to be an investor and come with them ontheir journey and be part of what they're trying to go change the world andhave a positive impact in sort of healthcare, that really takes it up a whole ‘notherlevel.

[00:03:09] Ben Williamson: I imagine, as well, whenyou're doing a sort of normal, services-based contract business where you'vegot a project, it ends, you move on. Sometimes that gets, implemented,sometimes you see it get implemented probably incorrectly, or you think,"oh no they've semi squandered that opportunity". Or I assume it'smuch more impactful, much more fulfilling to go past that point of the initialdevelopment and go on the life cycle with them.

[00:03:38] Gavin Coote: Yeah, it does, and it's not justfrom a broad company shareholder, investor engagement position. Our employees,we probably have brought in some of the best and brightest designers andengineers in the whole of Australia, for example, and for them being able to bepart of that journey, to put their skills and gifts together to really createsomething that is a breakthrough or novel, if you will, and they do get a bitof a kick, the fact that the company's backing their efforts to run a programto help the clients through this investment vehicle it does make it for apretty special relationship all round.

[00:04:12] Ben Williamson: So how do you think you'vegone to get those people? How have you sought them out? Have you targeted them?How have you brought them in? What do you think is driving these fantasticpeople to join up the business?

[00:04:22] Gavin Coote: Yeah. Without it sounding cliche,there's...

[00:04:25] Ben Williamson: Cliche away,

[00:04:27] Gavin Coote: There's the monetary aspect thateverybody expects to get paid something for showing up, and that's great, youtake care of that sort of stuff. But lately, these engineers are looking forsomething more than that. Their opportunity to work on ground-breakingtechnologies and generally having a preference for working on whole of productdevelopment programs, absolutely gets them up and out of bed in the morning.And our purpose, if you will, and it's pretty aspirational, and that is toimprove the health, safety and well-being of a billion lives. That's a bignumber and it's probably going to take us the next hundred years, but it'ssomething that can stand the test of time and people generally want to have afeeling that when they go home at night, what they put their energies andefforts into is going to have a positive impact on someone else that they maynever actually meet. So, that´s really important, I mean, probably one of themore specific aspects of the sorts of programs that Hydrix gets involved in is,and what is a point of difference, is in safety critical systems. And those aresystems in products that, if there's a malfunction, someone could seriously gethurt or die. And I think the fact that you're working on something that isreally so sophisticated from a software, electronics, mechanical engineering,and systems engineering perspective are really, you know, I was putting peopleto the test, I get blown away, Ben. They're like, "give me the reallychallenging ones". Right? So, maybe, the normal part of our life is to tryand have not an easy run of it, but not necessarily be challenged to a pointwhere it's like how are we going to solve this? It hasn't been solved before,but these guys, to their absolute credit, they're engineers for a reason, right?

[00:05:59] Ben Williamson: They want to bridge the finalfrontier. I think it's one of those interesting things for non-engineers. I'vereally only discovered it in this business, versus my previous work. Havingbeen someone who's trained in commerce and business and accounting, it's a verypractical skill set. The way that I think you learn, and you're tested in thosemarkets is, here's a question and tell me what the correct answer is. And Ithink something that I've noticed with engineers, like we've engineers andpeople in health, I think is really interesting, because rather than thinkingabout the answer, the first thing that a lot of engineers do is think about thequestion. Is that the right question to be asking? And what do you mean by thatquestion? And breaking it down. And it's something that as a commerce grad, Ijust never was taken on that journey, and it's such an interesting thing, atleast it's such a different mindset shift. And once you've discovered this,it's hard to get away from. So, if you've got that team of health engineers,they must just be having an absolute ball.

[00:07:07] Gavin Coote: Yeah, you've actually describedthat beautifully. They are really good at asking questions. And another thing,coming back to why are they attracted here, you actually need to create areally safe environment, and to encourage them to have the courage to challengethe status quo, not only around the internal team but with your client. Becausesometimes the clients can be really, think they're really clear on what theywant, and sometimes, actually, they haven't thought about a whole host ofthings just because our guys have been involved in such a multitude of projectsfor different clients. And so, the ability to take the customer on the journey,sometimes telling them things they may or may not want to hear becauseeverybody, you know, we will want our idea to amount to something. And so, it'sjust really. It's really interesting process, but they are terrific at askingquestions There's no doubt. And sometimes I need to pause and remind myself toask you question instead of talking.

[00:07:59] Ben Williamson: So, I guess tell me, you'vegot a flagship product in the Hydrix medical right, the Guardian heartmonitoring and detection device.

[00:08:06] Gavin Coote: Yep.

[00:08:07] Ben Williamson: So, if I go and look at yourinvestor deck, I can see what it is. I can see the size of the market, it'sobviously huge, I can see the process that it's at now. Take me back, how didthis come into the Hydrix sphere? Did it get introduced to the team? What workhappened early on? And take me on that journey a bit more, rather than justwhere we are now. Tell me how we got here.

[00:08:32] Gavin Coote: Yeah, so it was probably around2019, and one of the areas of strength, I guess, that Hydrix, the services partof the business, had developed over the previous decade, was working in somefrontier stuff around emerging cardiovascular technologies. By that I meanworking with clients that are developing total artificial hearts, so for peoplethat end up with total heart failure and aren't suitable candidates for a heartreplacement, for example, in the future, there'll be total artificial hearts.And there's also other products we work with clients on around assistive heartpumping devices. And so, we've got this fantastic engineering capability, andone of the things that attracted us to Hydrix, which actually, going back a bitover five years, we actually acquired that business, which was privately heldat the time. And one of the things that we really liked about it is, not justwhat they were doing, but also how could we find ways to capture more value. Wewere creating, as a product fee-for-services-based business, and hence that'swhy we set up the ventures part so that we could participate in future capitalgains on the work we're doing. The second aspect, which is, again, why we setup Hydrix Medical to focus on cardiovascular technologies was, how can weleverage this fantastic frontier engineering stuff and actually bring productsto market that are ready today or need to go through a regulatory process?Because cardiovascular disease afflicts about 14% of the global population andis the leading cause of death at 31%. So, this is a global, large, addressablemarket, and it's not going away. So, we were on the lookout for products. Wedidn't have 10 years to build something, so we thought let's find products thatwe could bring to market as distributors, with a focus in Southeast Asia orAsia-Pacific area. So that was the starting point and just through variousnetwork relationships, whatnot, the opportunity to discover AngelMed arose. Andit was pretty exciting the first time we heard about this company. The keything that's got them to the table to have a conversation was our reputation onthat frontier, in developing cardiovascular technologies, that core engineeringexpertise. That was the qualifier that gave us credibility to have a seat atthe table. For me, it was like, how else can I plug in something perhaps from aventure perspective to capture more value, but then also from a distributionperspective to generate future revenue streams of a product nature? That wasthe key thing we're looking to accomplish through that. So, we had the US CEOand chairman come and visit us here, really impressed with the team and thecapabilities. And then, from there it was about trying to convince them and theboard to say, "look,, we acquire the rights to eight countries in AsiaPacas your distributor down here, will help you develop some next generationfeatures and function sets in your product, and we'll invest the money to bringit to market". And I think one of the things in those negotiations thatyou invariably get involved in is you've got to find that extra hook, or thatthing that just differentiates you from everybody else. And when we offered tomake the investment in them, that just changed the dynamic and, "hang on,you want to invest in us? You're prepared to invest money to distribute yourproduct, and you can help us engineer a better product in the next gen?"They figured out they need to take a pretty serious look at it. And so, we thennegotiated a way to acquire the rights about it.

[00:11:56] Ben Williamson: Where did your rights cover?

[00:11:58] Gavin Coote: Yeah, we've got Australia, NewZealand, Singapore, Malaysia, Hong Kong, Thailand, Indonesia, and the biggest ofthem all, Japan. Part of what we’re talking to AngelMed about was, "look,you guys have an aspiration to get listed on NASDAQ, and you are solely andwholly focused on the US market, huge market opportunity. If we work together,for us for standing you up in AsiaPac, when it comes time for you guys topursue a listing on NASDAQ, perhaps if that's, and they're very keen to, towork towards that. You become into the market saying we've already got theseregulatory approvals in AsiaPac, and we've already started market developmentdown. Now you've got a market that's as big as, if not bigger than theopportunity in the US, and It gives them a really big point of difference whenthey're going out wanting to raise money and get listed. Not only have they gotthe world's first and only real-time heart attack alert device, they've also,they're bigger, they're punching above their weight beyond the US market, eventhough that's obviously a key focal point. We concluded the acquisition of therights in March 2020, and we've set to work with, the regulatory approvals andall that sort of stuff that we're still working our way through at the momentto commercialize the product here.

[00:13:14] Ben Williamson: March 2020, what a formativemonth.

[00:13:17] Gavin Coote: It was, it was a reallyinteresting time, with COVID coming on board. But, what is it about the productthat makes it so special, Ben, is, you know, you can talk about the commercialstuff, but I think one of the most relatable stories and it was confirmed to merecently, presenting at the Australian Microcap Investment Conference, wetalked about The Guardian, and I did it through the lens of a real patient, forsomething that recently happened, and the number of people that came up to meafter that and had a story, "oh, my husband's had two heart attacks, he'shad five stents placed", and asked them, "did he have any symptoms orrecognizable symptoms?" "No, he didn't". And then somebody elsehas got their brothers and this and that. This is this is a really relatablestory. And I guess the way I would describe the AngelMed Guardian is asfollows. A gentleman in Oklahoma, just in the last few months, sitting at arestaurant, having dinner with his wife, eight weeks prior to that, he'd had anAngelMed Guardian implanted. And in less than six months prior to that, he'dhad his first heart attack, gone to hospital, had a stent put in. So, he issitting in the restaurant, no symptoms of a heart attack or anything like that,no elevated heartbeat, no chest pains, no sweating, no fatigue, the usual sortsof signs that you might associate. But his emergency alarm goes off in hisAngelMed device. And so, he says to his wife clearly, we need to get to theemergency room at the hospital. So, they leave the restaurant, and he shows upat the hospital. So, at this stage, he's done exactly what you want, and thatis time to door, you want to shorten the time between symptom onset and gettingto the hospital. Because the longer you take the potential for far greaterdamage of the heart muscle. But once you damage the heart muscle, cause it'snot getting enough blood flow and oxygen, it's irreversible, that muscle damageis permanent, right? So that leads to a whole list of other complications. So,he shows up to the emergency department. Now, there are really strictprotocols, emergency departments around the world, they're very good at, onceyou get there, following the standard protocol to the point, if you need anintervention, very tight, right? The very small window which is what you want.But the hospital, when they ran their procedural tests running some bloods andwhatnot, they said, "oh, you seem fine. You don't have an elevated heartrate, the ECG looks fine", et cetera, et cetera, and, you know, they'rerunning bloods and they're waiting to look at, whether or not, he had elevatedtroponin levels, et cetera. And they said, "we don't see anysymptoms". And he's like, "look, my emergency alarm went off". Andlong story short, they take him in for a coronary angiogram and that's wherethey'll inject dye, have a look at the coronary arteries under X-ray and, sureenough, they find one of his major arteries more than 80% blocked. And so, ofcourse, they then do an, a PCI to place a stent to open up that partiallyblocked artery. Now, had he been turned away, at that stage, thinking,"oh, you're fine, it was just something you ate", who knows what mayhave happened, right? So, if you think about that, he'd had a previous heartattack, he had no symptoms in this recurrent heart attack. About a third ofheart attacks are recurrent. That is if you had one, you'll have another, andafter your first one, you might have that second one within 180 days. The otherthing that's really interesting from a data point perspective is in somewherebetween 30 and 50% of heart attacks, the patient actually has no symptoms or norecognizable symptoms, so the chances of you having a potentially catastrophicheart attack, and a delay getting to hospital and having an intervention toreopen that artery is staggeringly high relative to what the average person, meincluded, until I've, had the opportunity to get really well educated onbringing this product to market with. You just don't think about it, right?There's been some really high-profile personalities that have had catastrophicheart attacks over the course of the year, and you just wonder what symptoms theymight have had leading into that.

[00:17:12] Ben Williamson: I guess that's a really goodexample. So, great that his alarm went off and he was able to go and address itand be fine, and not actually have the heart attack. But what in the system,what triggered the alarm? What set the device off? What was it looking at thatwasn't visible on the.

[00:17:28] Gavin Coote: The AngelMed Guardian is animplantable device, so it is implanted similar to a single chamber pacemaker. Apacemaker is dealing with electrical problems of the heart. The AngelMedGuardian is dealing with plumbing problems of the heart. And the fact that theAngelMed Guardian device is connected to a pacing lead that is actuallyinserted into the heart itself, the signal clarity of what's happening withyour ECG signal, and it's particularly looking at a very specific signal withinyour heart signal. The science and the clinical data and the studies haveproven that an elevation of the ST segment is indicative of an impending heartattack, where you're going to have a partial or full blockage of the heart. Sothat's what makes this so special. The second aspect of it is, the device hasartificial intelligence and incredibly smart software that is customizable whenit is implanted to the person's specific heart signal. It is constantly takingan analysis of your heart signal, every 90 seconds, and it's constantly takinga look at the baseline. So, it is then looking at an elevation compared to thisongoing 24-hour day, seven day a week surveillance of your heart. There is,absolutely, categorically, nothing else like that in the world, which is doingwhat this device does.

[00:18:59] Ben Williamson: So how long does it last?

[00:19:01] Gavin Coote: So, the FDA analysed all of thedata that the company, Angel Medical Systems had submitted to it. So, thebatteries rated to be six plus years in its life. And if it was getting low onbattery six months before it sends an alarm, if you will, for a batteryreplacement. The surgery itself, pacemakers have been implanted for more thanfive decades. All of the infrastructure around the world, basically, exists inthe capital labs where they're dealing with pacemakers and defibrillators andstenting patients that have had a heart attack whatnot. So, we're not teachingthe cardiologists something new here. They know how to do this. Some of thecardiologists that we're working with to screen patients for the suitability toimplant they, anything between 15 minutes and a bit more, to actually be ableto do this, they're really familiar with it,

[00:19:50] Ben Williamson: Is this classified as apacemaker or is this separate? No, so pacemaker I'm going to show my knowledgeof the space really well here. If I'm going to say a pacemaker keeps the pace,right? So, if you've got like a skipping heart or a regular heartbeat orsomething like that, it helps put it back on track.

[00:20:07] Gavin Coote: Yeah, so the PACE device willeither... So, the heart might be beating too slowly, or it might be beating tooquickly or the chambers within the heart, in terms of how the blood's beenpushed around, may get out of sync. So, there's different pacemaker devicesthat are going to be implanted and set to manage that situation. And that situation'sbeen triggered by an electrical fault, right? So, if your lights go off athome, because you've had a power surge and there's an electrical fault, you getan electrician. But if the toilet blocks up or the shower blocks up, or allthose sorts of things, you call a plumber. That's a pretty good way to thinkabout it.

[00:20:41] Ben Williamson: Yeah. That's a cleardifference. But the way that it's implanted, the tools and the heartproblems... Cardiology is just such a huge industry. And I think I'm not,definitely not middle aged, at least I hope not, 37. I think I've got sometime. As someone who's heading there, you know, guy, I think, I would fearheart issues more than I fear cancer, as a male with a decent amount of stressin my life I will say, and not enough exercise. It's definitely somethingthat's there. And I think people looking from the outside, obviously looking ata company and going on the journey that they're doing as well as gettingfinancial upside, is always a better way to spend my money, I find. I like todo that. So, I guess, tell me we haven't covered like your history, how you gothere. I know a bit about it, And the journey. But for people listening. I thinkit's a really interesting thing to look at what you were doing before, why youmoved into this, why you are spending your time on this and what you arelooking forward to in the future with the business.

[00:21:47] Gavin Coote: Look, Ben, thank for theopportunity to touch on that. Just before I do., you absolutely hit on a coupleof really important observations here. One is, basically, referencing thequality of life. So, for somebody who's suffered a heart attack, many live infear, when is the next one going to come, and that might be it. So, if thatperson's got that quality of life, and unfortunately there's a lot of mentalillness around it. Think about the family and the friends, their careers.There's a lot of people carrying a fairly heavy weight around all of that. So,this device helps give them... Again, if you think about it, it's called theGuardian, right? It's there, and the quality of life's study that was done withthe thousand or so clinical patients that, ultimately, that data is whatsupported the approval with the FDA, that's how they describe it. It's my guardianangel on my shoulder that it keeps me safe. If I've got an issue, it tells meto get to hospital. Then it also gives me the reassurance that I can keepexercising with my grandkids, my wife, my husband, my kids, whatever it is, Ican keep getting on with my life. And I love that quality-of-life aspect ofwhat this does, because we all want to live the highest quality of life that wepossibly can. The second point you made, about investors, at the end of theday, you know, it's our job to make sure that when investors put their hardearned money into our company, that we're doing whatever we can to direct it inthe right areas to generate a reasonable and risk-based reward trade offer, interms of their return. But the extent that we can give them an opportunity.Everybody's got a relatable story about someone in their world, who's had aheart attack. The fact that we can give them the opportunity, just by thatexample, to invest where there's huge potential, as we look to bring thatproduct to market ,based on revenue growth and all of that, plus what we'redoing through the services business to help bring other products to market, Ihope that our investors see that by investing, they are creating an opportunityfor Hydrix to put money to work, incredibly bright engineers, giving them anopportunity to solve problems that haven't it been solved, and do some realgood in the world. And, at the same time, be able to generate, hopefully, somereally good returns. So, I think it's quite a special vehicle that I thinkHydrix has placed itself into a really interesting market. And COVID has been achallenge for everybody, right? And because we've got a mix of a core businessthat's been around for a while, but we're investing in all this new, theventures piece and this trying to create this distribution business, we'restill in a situation where we are needing to put, fresh capital to work, togrow the business. And it takes a lot of time and energy to make sure that wecan bring investors on the journey and. I think... I don't know, my 25- or30-year career, I don't want to give too much away on how I. am I think I'veenjoyed a lot of what I've done over my working career, and I've worked withjust some incredible people, but out of everything that I've been involvedwith, there's nothing that has resonated so acutely around what it is theimpact of what we do each day, can have on other people who I will never meet,and never get to know, but I will just know that we have made the world abetter place, ultimately, from a healthcare perspective, in products we'vebought to market, and even other products that the company's been involved in.So that's deeply inspirational to me, and it helps in those days that we allhave, when you're trying to get people on the journey, or things aren't quitegoing as well, or they're going exceptionally, you know? Wow. It's like all ofthose emotions of trying to build a business and that you really believe in theimportance of, yet you want to know that it's all going to be... Yes, you wantto generate a financial and economic return for yourself and for other people,but if you can, at least, have made a really positive difference in people'slives, I think that resonates with all of us. It's part of our human DNA, Iguess.

[00:25:46] Ben Williamson: Yeah, definitely with themajority. One of the things that we talk a lot about at work and on thesepodcasts because it's very easy to just think about this as a financialoutcome, which is, obviously, the goal of being part of a listed company. Andwe don't shy away from money and numbers and the like, but I think it's alsoimportant to realize that there is a company, beyond the code, that, if you'relooking at a screen, if you're looking at a chart, one, if you're not reallywanting to go past that, then it's very hard to spend on it. Looking throughand looking at the company, looking at the people on the journey, going throughthis sort of thing, like I think we've done a really good job of breaking downsome of the aspects of the business and getting that insight. And that's thewhole point of the Chairman's List, to give people that insight that maybe yourtop holders will have or have a conversation with you like they would and seebeyond just the chart or just the investor deck and those sorts of things. Ithink it's been a really amazing journey through that. I think I've driven alot of the topics here. One question I had for you is, what haven't we coveredthat you think is quite important to the business? Or what sort of question doyou like to be asked that you don't think is asked very often? Let's dive intosomething that's quite poignant, in our last few minutes. No pressure.

[00:27:04] Gavin Coote: Wow. Yeah, no pressure. It's avery good question, Ben, and I'm not even sure I've actually got an answer toponder that.

[00:27:09] Ben Williamson: To be fair, I picked a topcouple of swings, you know, we went into the venture side, we went into theAngelMed side. I guess, tell me about the services business, because that'sbeen the core in generating a lot of this. The venture side really only comesoff the service work, the guardian product, in your own words, really cameabout that initial bit, really came about because of your expertise in aservices way. That's what got you in the door, that's what sort of helped buildthat relationship. So, tell me about the services stuff. Where's the interest?

[00:27:39] Gavin Coote: Yeah, the thing around theservices business, we had to step back and have a look at how that business wasgoing when COVID struck. We had a lot of exposure to some pretty early stageand underfunded clients, and even some larger ones who had to make some budgetcuts. And so, in the face of that, it really got us to sharpen the pens andsay, okay, how do we build a more robust business for the long term? And one ofthe areas that we've had a look at was our business development team. For aslong as the company had been around, we're all pretty much based in Melbourne,and when travel stops because of a pandemic, doesn't always help you, right?So, we achieved 40% revenue growth in the last financial year, so fiscal 22over fiscal 21. A large chunk, if not a majority of that revenue came throughgrowth out of international. And because one of the things we did is said weneed to put a business development person in Europe. And we've recently justrelocated one of our senior BD people into the US, actually put feet on thestreet where our clients are based. And then really support them with the rightsort of sales and marketing, digital as well as the old tried and true get toconferences and trade shows, if they're back open. So, I think the businesswe've really set it up to grow. The other parts that we did is how can we makeour project management processes, more productive, more efficient? How do weactually need to find the best sorts of clients to target that can really useour safety critical systems engineering capability more than others, and areprepared, fundamentally, to pay what we think it's worth, so that we can makesure our business can be profitable and sustain that level of profitability andgrowth over the long term? So, we unpacked a few things. We did pivot more tosome MedTech. We've set up ourselves well in Europe, and we've had greatsuccess out of Europe. Last year we only got about 7% of our revenue coming outof the US. It's the, one of the world's largest, if not the largest medicaldevice countries in the world. So, we think there's great growth out of that.And from a European client perspective, to be working with a company likeScandinavian Real Heart, who is developing the world's first, four chamber,total artificial heart, and taking our internally generated IP, that iseffectively a safety critical control device. Think about a reallysophisticated remote control for your tv, but on, like a hundred times, athousand times more steroids than that because you got to process, nearly10,000 instructions, possibly a second, for a total artificial heart in termsof the different senses in there. To tell the mechanical heart in the future,what it's got to do for the person that might be laying down, then standing up,going upstairs, sitting down, relaxing, whatever it is? So, those sorts ofopportunities that have come up out of having a presence abroad are the sortsof things that the business have never had before. They're always the ‘TravelingWilburys’, they'd pop in and pop out. Now, there's feet on the street andthat's opened up a much bigger, I think, market opportunity for us and reallycreates a global platform for us, Ben. So, I'm excited by that. I'm excitedabout the prospect of how we may grow that business, but I think our foundationbuilding blocks today in my mind, the management team that we've been able toupgrade and really give them time to work together over the last couple yearsis, probably, the best management team we've had, and I think it can genuinelygrow the business in the next few years significantly, organically, throughbetter business development and just delivering clients a stronger and betteroutcome that gets them to market quicker. So that they're raising perhaps lesscapital by reaching their commercial milestones faster.

[00:31:15] Ben Williamson: Yeah, which reinforces therelationship and drives more work and helps you reach a billion lives.

[00:31:21] Gavin Coote: Yeah. And I guess, one finalpoint on that, you mentioned how we can leverage that brand credibility andrecognition globally. If We think about the AngelMed product, and this is onlythe one of many, we've got a pipeline of the products that we're exploring andevaluating, they got to be suitable for us to take to market either as throughdistribution, as a third party distributor or that we think would be reallygreat assets to own, right?

[00:31:45] Gavin Coote: So, we'll continue to build outthat portfolio and stage tune there. The thing with the Angel Medical Systems’relationship, which they own, the Guardian device is, services convinced themthat we've got a great track record in this space. So, provided some services,ventures investors, and then medical acquired the rights to distribute. And Ithink that's a great way to sum up here, how these complimentary businesssegments can really work together to provide some significant points ofdifference to get the attention. We're in Melbourne, there's companies, on theeast coast of the USA. At the end of the day, what we are doing now will buildeven greater brand recognition, and create even more proprietary deal flow,whether it's through ventures, distribution, or services in the future, suchthat we may get the opportunity to distribute a product, and through that,actually, give our services guys an opportunity to help that client develop anew product or a venture opportunity might lead something. And so today, ascompared to, let's say, two or three years ago that didn't exist. And today,I'd encourage investors to not look at it as a complex business, but one that'sgot genuine synergies that I think today is more mature than what it wasbefore. And come on the journey with us.

[00:33:05] Ben Williamson: What a wrap. What a greatfinish. Strong.

[00:33:08] Gavin Coote: All right. Woo!

[00:33:09] Ben Williamson: All right, Gavin. So, thankyou very much for taking the time. If people want to reach out, how do we getin touch with you? Are you a tweeter, LinkedIn? What's the best way?

[00:33:18] Gavin Coote: Yeah, look, LinkedIn and, I'mhappy to engage with investors, their questions. We are recently. And I'll giveyou a little plug here. Because it's like what, you know, your Amplify Platform- and for us to be able to create an interactive investor hub so that there isa sensible platform where investors who really want to engage and understandwhat we are doing and be able to have one place where they can track theperformance of the stock and see all of the announcements and news flow, and bein communication with those all within ASX guidelines and our corporategovernance protocols, of course. We're really excited about we'll launch thathere at this quarter end. And I think that's going to be a great platform thatpeople can, be encouraged to reach out and interact with us, and hopefully wecan give the comfort and confidence to, as I said, come on, the journey withus.

[00:34:06] Ben Williamson: I think it's great. So, Ithink, giving people the ability to go and look at the announcements and askquestions, reach out to management, making sure you're available. Helps peoplego on the journey of what is this company behind the code. And the more peoplewho do that, almost becomes like self-fulfilling, that there's more buying,less selling. And when you've got increasing demand and decreasing supply of ashare price of a stock, it only goes one way. And so, it creates its ownprocess, which is fantastic. Gavin, thank you very much. For people looking ontheir screens, have a look at Hydrix, HYD is the ticker code and I'm sure we'lltalk to Gavin again soon.

[00:34:45] Gavin Coote: Good on you, Ben. It's been apleasure to have a fireside chat this afternoon.

[00:34:48] Ben Williamson: Thank you.

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