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In terms of global markets, i think they have to open up other production avenues. Whether that's more capacity in the UK or giving/selling the design to overseas manufacturers. Omega and the other 3 companies will sell as many as they can produce and it will never be anywhere near enough no matter how much they upscale. Zero concerns about where the market is. Look at Americas for starters.
If these tests are as good as we expect them to be and they are the key to opening up the world again, you can't just hold the manufacturing in 4 small UK companies. It's in global interest to get as many produced as quickly as possible to service all markets. If you had a billion of these tests you would sell them tomorrow, and we can't even scratch the surface of that demand IMO
Bel, on Twitter has shared correspondence from Omega which says that Omega have capacity to produce about 25 million a year across 2 sites. Could be more if they continue manufacturing over weekends.
I don't think the current capacity is the point in relation to the potential for the RTC over these tests. It does show how capable they are- increasing their capacity so substantially in a couple of months. But once these tests are out and are seen to be enabling a much more confident return to work, demand will rise worldwide and faster than we can supply. Governments will want it. Governments and international NGOs- the WHO, the EU etc will make it happen. It's a gateway back to normal life. So new manufacturing partnerships and licensing agreements will be the form of sales and distribution for the RTC. Higher sales, lower costs. Sales potential in the billions in that context. First out of the box with a reliable accessible, affordable home test antibody kit. Heading for a billion pound company, all things being equal.
Once the test is developed each company will have the right to commercialise it. Government will be the priority supplier.
The plan is for Omega to supply Scotland, Abingdon England, Ciga N.I, and BBI Wales, with excess into the larger England Market. Then its any excess sell to private or public global market.
However many they make they will sell. There is no sunk cost for R&D as its consortium effort Government funded. SO its just selling price less marginal cost of production = net profit = free cash flow.
Does anyone else think the Indian market could be quite interesting for us, considering they have nearly 1.4bn people...
Omega website: In the following year (2011), the group founded a wholly-owned subsidiary based in Mumbai, India providing access to the Indian market for the sale and distribution for the Group companies' products.
https://www.worldometers.info/coronavirus/country/india/
PDMSPiper
I don't even have to read what you have to say - i just press 'recommend'. :)
You're one of the best contributes on this BB.
I would tell any newbie to read your history on ODX and they'll learnt a lot. keep it up and well done!
The initial Government order of fifty million tests will be shared out for production among the consortium members. ODX and Abingdon have the largest manufacturing capacity and should produce around 20 mill each in all likelihood.
After that it’s just every man for himself and ODX can increase capacity and sell as many tests as they can produce. There is no profit sharing agreement. The tech will be given to each consortium member and they will each make and sell as many as the market requires and keep 100% of whatever profit they make.
Omega and Abington have the largest manufacturing facilities so they will receive a bigger share. For example a total of 50 million tests may be split as 20 for ODX, 20 for Abington and 10 for the rest. If each test is £10, then each one of them will get £200 million from sale. Then add what they will sell to other countries. Thus why they are all ramping production.
Hi all, have a small holding here and looking to add. One question that I have been unable to find an answer to is do we know what percentage of revenue Omega will get from sales? Are the consortium member considered equal or are Omega or another member expected to receive a larger share?
Either way the demand for this test will be huge so even a 20% share will be substantial but just wondering if anyone had read anything or can estimate based on the partner roles in creating the test.