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Thinking about investing ISA money here? Well, here’s a few things to consider.
Covid thrust LFT diagnostics into the limelight, even though anyone who has done a pregnancy test knows it’s existed for decades. Now we’re through the pandemic the sheer number of LFT developers has exploded globally as they search for ways to quickly, accurately and cost effectively achieve diagnosis across a huge range of applications including human, animal, plant pathogen, and environmental testing. These developers are scientists that create biomarkers, the chemistry that attaches to a target to show a result, but they are NOT experts at putting it into a commercial LFT that can be manufactured at scale, nor do they have ready made distribution channels through which to sell.
This is where ABDX comes in, by taking great scientific LFT applications through to commercial success. And this is all against a backdrop of a move towards decentralised, personally managed healthcare which is necessary to release the strain and cost on national health systems.
For the last couple of years the BOD have had a clear plan, and they’ve stuck to and succeeded with it. Build your developer customer base, scale their projects, help them get regulatory approvals, and offer mass manufacturing and established industry and retail distribution channels. All the while it has remained at the forefront of LFT innovation, advancing much more accurate testing methodologies that combine the best of molecular (PCR) with the speed and cost effectiveness of an LFT, as well as advancing far more eco friendly, non plastic, test cassettes.
The business has gone from having just 13 ongoing projects at the beginning of last year to 29 now and of those, 50% are US based, a territory into which the company has also just planted a foothold. And we are now moving into the really interesting phase where the first of our customers developed and approved tests are commercialised and moving into mass manufacturing. More, including those already fast tracked by the NHS for widespread adoption, and targeting significant markets, are coming through the hopper.
It won’t be long at all before we are making millions of tests each month for this diverse customer base across a huge range of applications, and supplying a growing market. And we have few competitors.
And then there’s the management. Well, they own nearly a third of the company and have prudently navigated the company, and its finances, through difficult times to where we sit today. They’ve turned the tanker and now sit ready to put into full throttle.
And if you’re worried about a raise, don’t be, at least not to keep the lights on! The BOD have been crystal clear they don’t like the idea and don’t need to raise in 2024.
So, IMVHO, this is a well run, stable company that has positioned itself superbly to take advantage of an exciting paradigm shift towards rapid testing.
Not a bad place at a
*not a bad place at all to stick your new ISA allowance!
All IMO - DYOR and GLA!
Where's the shame Muck165?, we reckon we are doing others a favour. At these prices, there's not much to lose at any rate!
No shame here Lucksin!
Developing an LFT takes time and money, and the developer carries the risk of failure. We used to do it and indeed threw everything at it during Covid only to get shafted by the DHSC. That's like sticking your money all on one horse and losing.
So we re-positioned, and instead offered our services to other developers who have to fund their development and assume all the risk of failure. We get paid regardless. Its a bit like the owners paying us to train all the horses who race - we don't care which horses win, we get paid. Doing so has put the company on a much firmer footing.
But then there is a lack of competitors in our space to serve a expanding number of potential customers - so we can cherry pick the ones we want - that's like having first dibs on picking foals bred from champions.
And then we go further, because we will end up manufacturing for those customers that succeed. That's like taking a slice from the total winnings of every horse we've trained, horses which have been bred from champions for success.
And that's where we sit now. Our horses are starting to run. We have no risk if they lose, but stand to gain significantly if they win. And we potentially have a lot of horses running.
We have spread our risk by accepting lower manufacturer rather than developer margins, but mitigated that with the prospect of much higher manufacturing volume overall.
Have a great weekend all.
Awesome!
Just to add, if one trick pony developers like Salignostics, Upfront, Loop etc fail to commercialise then they fail as a business. It’s a risky business where years of effort and money can go down the pan. Vatic is just one example.
So, companies want to partner with CDMO/CRO companies that can demonstrate established routes to market, high grade distribution/sales partnerships, and a history of assisting commercial success. It lowers their commercialisation risk and helps them attract their own funding.
That’s one reason why the commercial success of Salistick is important to us, as is our new relationships with Tesco, Superdrug, and Boots.
Hard to take in really. This little known company prior to 2020 , has had the capacity and know-how to assist the commercial success of other developing companies, at least 29 of them, and 3 of them are major UK retailers,Boots, Tesco and Superdrug. I think that is pretty amazing in itself. To have already made so many partnerships both in the UK and abroad, suggests ABDX possesses the necessary skills to maintain mutually beneficial business relationships hopefully for many years to come. If it continues to grow the way it has in 3 or so years, just imagine it's value in 10 years time.
Yes but don’t get too carried away. Remember what the company was valued at when launched and during Covid before the legal wrangling started!Some of us still smarting besides doing pound cost averaging since!