Virtus Health Limited (VRT)

By Jason Fittler

VRT is a healthcare services company, which provides a variety of Assisted Reproductive Services, Specialized Diagnostics, Day Hospitals and other related Assisted Reproductive Services across the eastern states of Australia.

Virtus provides these services to its patients through a network of 33 fertility clinics, 17 embryology laboratories, 18 andrology laboratories, 6 specialised diagnostic testing laboratories and 6 day hospitals.

This business line provides a range of treatment solutions that assist patients who are unable to conceive naturally to achieve a clinical pregnancy including cryostorage of embryos, eggs and semen, and pregnancy testing services.

These services are supported by specialised diagnostics and day hospital services. 

Virtus provide these services to its patients through a network of 33 fertility clinics and 17 embryology laboratories.

Virtus operate under different brands in each State market including IVF Australia, Melbourne IVF, Queensland Fertility Group, and Fertility Centre.

Virtus Health is the first in-vitro fertilisation, or IVF, service provider pure-play to list on the Australian Securities Exchange.

Virtus was formed through the merger of three established networks of IVF clinics in 2009 and operates 35 IVF clinics across the east coast of Australia.

The management of IVF cycles is the key value generator for Virtus and represents almost 80% of total revenue.

Specialised diagnostic services account for approximately 7% of revenue and focus on three main areas: andrology (testing of semen), endocrinology (testing of blood and urine) and genetics (analysis of chromosome structure).

Apart from some routine blood testing, analysis of almost all specialised diagnostic tests are conducted in-house and billed separately to the patient. Day hospitals are used for a mix of procedures, mostly associated with IVF, and generate 13% of top-line revenue.

Since listing in June 2013 the share have moved from $6.20 to current price of $8.44, which is a gain of 36%.

It does however has a low yield and on a PE of 40 which seem high for the sector.

It is one to keep an eye on.

For more information about Virtus Health Limited (VRT) please contact us on 07 4771 4577.