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Yes - that’s what I heard. I think the LFT production equipment manufacturers (ODX appears to work with one from Finland) will have hugely strong hands here. Limitless demand and pricing as hard as you like. I hope Omega have got in there quickly enough and not tried too hard on price etc. Sometimes it is better just to pay up and secure positive engagement!
Fair comment - I see how can that be misinterpreted.
He did say two things - the three machines that were required to go up to .5M tests would be in (although not started up) by the end of October, and that he hoped to 'start the procurement process this month' for the greater increase to 2 - 2.5M tests.
I hope that is a clearer representation - the point being that the huge ramp in capacity would not be being contemplated (and actioned) without reason to think that it could be used in the future for recurring revenue streams. (which CK confirmed during the Q&A session with Paul Hill of Vox Markets).
I'm not sure i would say the world isn't ready for antibody testing yet. Individually it would be extremely beneficial. But as part of a wider national screen, it may be more effective in a few months time, once tests have been stockpiled and made readily available in bulk, if science can get to prove 9 months immunity, and the percentage of the population with antibodies is increased from the second wave. The government wont tell you this because if they say they are holding it back it will be seen as letting people die.
Thank you MB.
I have always been of the impression that the world isn't ready for antibody testing and its significance. ..yet. ODX will be ready for when it is. I hope the antigen test is ready sooner as that would be an instant hit despite the challenges with saliva testing.
@Oilyali: “And he was hoping to procure that massive increase in capacity by end of October, so possibly in time for the 28th October.”
Please don’t misrepresent what he said, it’s not helpful. He said he was looking at possible plans for increasing capacity and hoped then to make procurement decisions as early as possible.
And when he mentioned that capacity, it was specifically in relation to Moonshot as well, so we pretty much know we will be playing a part in that.
_TCO - They are on commercial sale through distribution partners. They will not RNS every sale it will come in trading updates. The upcoming trading update may be too soon to get a feel.
The important thing to remember is lateral flow testing is still in it's infancy, the market hasn't really begun yet. We cannot as consumers get our hands on an approved home test at the moment, and we have to pay private to get any sort of antibody test. But this will be where all the action is in 2021. So it's not really fair to judge Omega on current sales when currently the whole industry is in a pre market phase. But it will come, and it is clear to see Omega are doing everything they can to be ready. The need for lab based testing will drop significantly as lateral flow tests come online. So if sales are not there at the moment because of approvals, supply, rights of refusal, science - they will come. Omega will produce what they can and even if they stock pile now and sell nothing until Jan, they will sell, and it will be no different financially to selling all your stock on the day it is made.
And he was hoping to procure that massive increase in capacity by end of October, so possibly in time for the 28th October. To me that is a lot more significant than the fine detail of test orders. It is a massive vote of confidence in a much larger future and MCAP.
Bear in mind he wouldn’t make that capital outlay if he didn’t feel it was justified for times of Covid and times beyond. He has said as much in his presentation.
I’m reasonably sure - as are many holders here - that we will sell as much as we can produce - the constraint is capacity, not demand. Addressing that issue by the end of October if we manage to do so will be the game changer I think.
Hey MB,
I wanted to get your and anyone elses thoughts about sales. Of course the gov have got the consortium sales for the ABC test under lock down (excuse the pun) However this shouldn't have affect the visitect antibody tests. Any thoughts as to why these sales (or lack of) have stayed relatively silent?
The most interesting thing for me is CK promised news of a plan to further increase capacity by the end of this month. Once3 things are up and running our capacity will be the limiting factor. We will sell every test we make.
I am thinking this could easily go into the £1.20 - £1.50 range between now and the trading update next Wednesday.
I am confident they will have sold and continue to sell lots of product due to the global pandemic.