In a recent Forbes profile, author Peter Cohan suggests that 908 Devices, based in Boston, may be a good company to consider for investment. He notes that they are doing several things right that are keeping them nimble, including attracting top talent, empowering employees closest to clients, launching products quickly and fighting bureaucracy.
Copyright: 908 Devices
The company uses microfluidic chips for electrophoresis-based sample preparation and electrospray ionisation (ESI) for sample introduction into their revolutionary desktop or hand-held, low power, high (atmospheric) pressure mass spectrometers (HPMS) that perform the sample analysis. In some cases the HPMS operates alone. More information is available on their website, including a listing of their suite of patents relating to both the microfluidic ESI and HPMS aspects of their core technology. Applications vary from cell biology analysis, detection of drugs (e.g. fentanyls, opioids and amphetamines), explosives and chemical warfare agents. Importantly, the chips are easy to use, and instrumentation is coupled to powerful electronics and software to automate all operations and analysis computations, and thus afford a simplified, practical interface suitable for a broad base of operators.
The company was founded 9 years ago, and had its IPO in December, 2020. It’s stock has dipped slightly, but revenue grew by 50% last year to USD $26.9 M and is projected to grow another 45% in 2021. The company also just landed a USD $25M purchase contract from the US Army for 350 of its MX908® portable MS instruments for on-site explosive threat detection and evaluation applications.
Cohan notes that 908 Devices avoids agility potholes such as forcing valuable employees who intimately understand the technology, customers and competition to do “tooth-cleaning-like reviews” for C-suite executives. CEO Kevin Knopp noted in his interview with Cohan that they intentionally maintain a fairly flat organisational structure, hire high-calibre talent, and empower their employees to listen to customers and react accordingly.
Cohan summarises: “If 908 can figure out an easy button for sustaining 50% annual revenue growth, its stock is a buy.”