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I read somewhere Avacta wanted the two new companies to maintain their own identity..hence they have maintained their own websites and maybe the reason for DX not being full frontal on the updated Avacta website site which is so obviously now all about TX. I can understand the logic initially but now with the change of CEO I think it is time to go whole hog and redefine the DX side of the business as a seperate stramlined business. Perhaps it's already in the plan and will be one of the next steps.
At the risk of stating the obvious Donkey they're a Pharmaceutical development company who will live or die by the results they produce.
Cutting staff will slow or prevent the development of these products.
If the products they were developing were as good as many on this board think then raising funds to development shouldn't be a problem should it? Every 5th post is about the big money big pharma are splashing around elsewhere, but strangely not here.
Which make you think doesn't it.
Or not, as the case may be.
Depends on the contract terms agreed when the company was acquired. Key staff are typically tied into a minimum term contract with their perceived importance to the business dictating the term. Probably highly indicative of staff changes/savings that they are forecasting profitability in H2 this year.
At the risk of stating the obvious, cutting staff costs will reduce cash burn and extend the time before the next cash raise comes along, by which time there should be more data from the trials. Still optimistic despite the FUDsters' relentless efforts.
..............."Overstaffed for sure"............."DX side now needs streamlining not run as 3 separate unrelated companies"...............
I'm glad other people have picked up on this because it has been a bit of a bug bear for me, if you exclude CC (CEO) and TG (CFO) they have a...
Chief Operating Officer
Chief Scientific Officer
Chief Commercial Officer
2 x Managing Directors
Executive Director
and a Chief Operating Officer (Coris)......... and probably no end of middle management too so it's no surprise why its loss making, they have had plenty of time to streamline and trim the numbers.
Sorry to be pedantic PL75, but ref TG, DX is expected to be EBITDA positive in 2H 2024 and cash generative in 2025 (not 2024).
NathanR999...see where you're coming from. DX has it's place right now on the Avacta books but the whole DX side now needs streamlining not run as 3 separate unrelated companies. Once done then sale or spin off can be looked at. Again this is where Avacta needs help/advice from someone who knows the heathcare business with contacts etc...
Overstaffed for sure. I don't disagree with your points but for a lot of their clinical customers they will be stocking and servicing market directly. Direct shipping to hospitals is a nightmare due to paperwork post credit and most procurement departments specify billing and shipping in UK. Launch booth at IBMS conference was way too big and extravagent but this may have been booked and planned prior to acquisition. I can't think who in the UK (and the business is primarily UK by headcount and revs) would shell out for the business. Other distribution companies will be better picking of the companies when distribution deal come up for renegotiation periodically. Coris as a manufacturer could be a gem but eu ivdr rules around new diagnostics increase cost to.market but they could look to contract manufacture for others to sweat there knowledge and capability.
Green box and ignore the fantasist. He’s living in his nans basement desperately hoping the government will renew his PIP, so he can buy more tasty crayons
So what do you do Groot …respond. What a berk
NathanR999...it all depends what their Distribution agreement mix is...how much is stocking vs non-stocking and who invoices (Principal in the case of house sales). Distribution can be very
lucrative if set up correctly.
The large contracts can be shipped and invoiced by the Principal (house account) with a royalty/commission paid to the Distributor who services the account.
60 staff seems a lot though...
I'm happy with Dx now we've got it, if (and whilst Tony is doing the sums we can't say for sure) it is cash generative. Tony reckons this will happen in H224. Selling it at a loss would compound the original M&A strategy error. If it's adding to the bottom line, keep it. Hopefully it'll generate enough cash to cover the HCI payments in cash.
Green box and ignore the fantasist. He’s living in his nans basement desperately hoping the government will renew his PIP, so he can buy more tasty crayons.
No - just a tedious moron.
Yeah but I’m right 😉
This moron is even more tedious than wynbore - and that's saying something!? LoL
FDA. Approval then boom. Not long to wait !
The divestment of dx business is vital tbh. Wasn't really sure of why this was purchased in the first place as margins in distribution aren't even close to.own product manufacturing in this space. The coris purchase I could understand but coris is distributed in the UK and elsewhere via other companies for a long time and extricated of that.may be a challenge and change of ownership doesn't always trigger an exit. Uk dx market is a real challenge and uk isn't reimbursed and I am not sure who would acquire. Hospital market is more and more being.delivered by managed service contracts with large dx companies with UK subs in place already. Looking at ebitda for dx you are going to need to spend a lot as an acquirer to hopefully keep distributions which isn't always possible and for minimal or no profit uplift unless you can renegotiate deals with suppliers or take a hatchet to back office costs and that would take time. Anyone got any.ideas who would be a buyer? Coris products are interesting and they may actually sell higher than acquisition but launch I can't call and I am pessimistic we get our money back. On that grumbly note I will reiterate I am really positive on the pharma and that's all I am hear for. Dx is a distraction we don't need.