Visible progress is being made in bringing to market two disruptive technologies Adaptix a small, portable and low-cost 3D X-ray machine and Magnetica a differentiated MRI solution at the point of care. Our analysis shows a clear need for Adaptix as existing solutions are inadequate and Adaptix brings benefits to all stakeholders (patients, physicians and payers) with richer, safer and cheaper imaging. Magnetica offers high-quality MRI systems which are smaller, lighter and cheaper than existing whole-body MRI systems. In keeping with AVG’s Pinpoint-Invest-Exit strategy, we expect management to seek to realise value on its investment with an IPO/trade sale the most likely outcome. Our analysis suggests a fair value range of £85m-£140m (251p/share to 422p/share). Assuming successful execution of the Medical growth plans, this suggests plenty of upside potential beyond our stated TP which is derived solely from the Engineering business for now.
