Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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I am getting more and more excited about Chondromimetic.
I was rereading the Hardman report from report from 13 July 2017. It goes in to a good level of detail about Chondromimetic and its potential market. I think the two main points that I had forgotten were :
1) TiGenix paid 14.6 million for product in 2009 (this is more than the current market cap than COS) before changing focus.
2) Using the same technology there maybe other products behind Chonromimetic, I know Jamal has talked about use in other areas (toe/ankle/shoulder) but the product also has applications in ligaments, meniscus and tendon repair. Based on Hardman estimates those markets combined are 3x Chondromimetic. If they can get Chondromimetic off the ground the growth runway is long and even if they only capture a small percent of the addressable market the share price will be multiples of where it stands today.
Just looking at the declared shareholders it is nice to see all but the newest board members hold shares and for some the numbers are pretty decent ! Always good to see the management and directors with decent alignment.
Brett Gordan continued his buying
Based on Jamal's last video update .... on a normal time line, we can expect CE mark decision during April (possibly early May). Also in early April we should get the top line numbers for the financial year and I think we are due an update on the animal trials of the other proprietary products. So plenty coming up in the next 45 days to move the share price one way or the other.
Company overview
https://www.youtube.com/watch?v=S5R_-3UMwNM&feature=youtu.be
It would be nice to have interest in the company .... but i sincerely hope no takeover is agreed in the foreseeable future as the long term prospects are good and any near-term offer would not properly capture that potential value for current shareholders. If Chondromimetic gains any serious traction our market cap could well be higher than Generex in the next 24 - 36 months. Look at Tissue Regenix (TRX) a good company but a that is a lot longer away from profitability and technology that has more cost, technical and ethical challenges than ours but I guess you could call sexier and it has market cap of 80 million.
Generex seems to be very acquisitive if Excellagen sells well Generex may follow their philosophy of controlling end to end delivery.
Goodbody, very well spotted. You would hope a good portion of that 1.4 million has gone to COS to build up sufficient inventory for their launch !
extracts from Generex Investor Conference Call...
"Excellagen is FDA cleared at 17 wound care indications, including postsurgical wounds, diabetic wounds, and foot ulcers and venous stasis ulcers, post Mohs skin cancer surgery, and cosmetic dermatological applications.
To date, Generex has funded Olaregen with $1.4 million to support manufacturing and pre-launch activities."
"The completion of our comprehensive sales training modules, and with the hiring of a number of experienced specialty sales reps, we are poised to enter the market with our 0.8 cc syringe, selling it to the VA inpatient and wound care clinics, the DOD, and in-hospital surgical settings. With the supporting data on Excellagen features and benefits, together with our value-based pricing, we anticipate early uptake in these markets"
https://storage.googleapis.com/wzukusers/user-26831283/documents/5c7a927a938dcse7yQHy/Generex_IR%20_Call_2262019.pdf
http://ir.collagensolutions.com/content/news/2019/150119.asp
"Imminent approval" we need formal approval by the regulators before this company takes off. That said I am a keen supporter of COS with skin in the game.....could not resist the pun!.
Good find Tommy, Great Video. SoupChicken; to me, COS is not the company it was even one year ago. It has moved up the value chain. Would suggest watching the Hardman presentation where Jamal mentions this new strategy and explains exactly what you mention, that the %returns were much lower with their old strategy, so they changed it.
60% of COS is in major shareholders hands; this says something to me. Looking forward to news on the horizon.
SoupChicken, I think I would tend to agree with you if it were not for two things. 1) COS is currently at cash flow break even or at least should be in the coming months. 2) the imminent approval and launch of Chondromimetic. We know that GP on sales will be between GBP 600 and 700 per pack. In my view in months 12 to 24 after launch they should be able to do at least 5,000 packs (I actually think they can do a lot more but thinking worse case) given the cash flow break even has been reached most of that GBP 3,000,000 will fall to the bottom line. In addition the underlying business will have added an addition GBP 1,000,000 to revenue or 700k to GP. So you are looking at a business with net cash flow of @ GBP 4 million in 24 months time this is vs a market cap of GBP 13 million today. If I was to plug a more optimistic case for Chondromimetic you could be pushing GBP 8,000,000 to GBP 12,000,000 in FCF. The other way I think about it and I accept it may be flawed, is that whey they convert a surgeon I assume they will only use Chondromimetic and no longer use micro fracture. An average surgeon does @ 175 procedures per year and an average procedure uses 1.5 packs. So to get to 5,000 packs per year they only need to convert 20 surgeons. We also know that there are a handful who are ready to use the product from day one.
So in summary I think the real delta between your view and mine comes down to the outlook for Chondromimetic. I am happy to hear an alternative view on Chondromimetic. My view is based on my experience as to how few long term effective treatments there are for Cartilage damage.
Tommy
I looked at this company before many years ago. I thought the main issue is that it just can't grow it's sales fast enough. And also seems a bit too dependent of government grants.
I can't see that this has changed.
Good name and product though but is perhaps too subscale for great returns. Just my humble opinion.
Just found a new corporate video of COS on you tube.
https://www.youtube.com/watch?v=S5R_-3UMwNM
Looking at the charts the 50 and 200day moving averages look good; rising steadly. We just bounced off the 50day and this could break out to the upside. Resistances at 5 and 8. I would guess a break out would see us in between these if volume picks up.
https://www.tradingview.com/x/gk1WiIq2/
Good interview.
At last we are talking possibly weeks now to get CE mark and
ChondroMimetic straight to use.
Outlook good imo.
Agreed. Also From memory the average weighted price of the options is about 5.8p and the conditions for release are shareprice above 10p and a period of being cash flow positive ( can’t remember the exact criteria something like 6 consecutive months).
https://m.youtube.com/watch?v=mcVVgJIWGVU
Jamal starts speaking about 51 mins. Some interesting insight in to how much more of the pie they capture with contract manufacturing and secondly where we stand on the approval of Chondromimetic.
Just reviewed the Directors Deals and most will still be in the red at 4.1p so they have everything to play for.
http://ir.collagensolutions.com/pdf/presentations/2019/Hardman_Investor_Forum_0219.pdf
ChondroMimetic Next Steps
Europe
• Pending CE Mark submission
• Early distributors signed
• “Limited User Release” planned with KOLs • Additional distribution channels to follow
Asia
• South Korean regulatory submission in process
• Distribution signed for Malaysia, Indonesia, and other
• Timing linked to CE Mark (to support local submissions) • Additional distribution channels to follow
Yes. I did not attend but normally there is a video of the event, would be good to see that. COS is pretty good at posting videos etc, so would expect something in the next 24 hours.
Investor meeting was last night?
Posted Yesterday in NZ - Not sure if is a new position or a replacement but they have talked about the growth opportunity in the tissues business.
Production Technician
Collagen Solutions (NZ) Ltd -Marton
Full time
PROCESS TECHNICIAN
Collagen Solutions (NZ) Ltd operate an animal tissue procurement and processing facility in Marton. From here we supply abattoirs with solutions for the collection and shipping of tissue products and carry out tissue processing on behalf of medical device companies across the globe.
Reporting to the General Manager, this role involves the manufacturing of solutions and processing of animal-derived biomaterials into products ready for use by medical device manufacturers.
We are looking for a reliable person, ideally with processing/ manufacturing skills, who demonstrates the key attributes of accuracy and attention to detail. A willingness to learn and flexibility to undertake a wide range of tasks will be required, as is the ability to work within strict Quality Systems guidelines.
A science background and/or laboratory experience is highly desirable.
The successful applicant will have the following attributes or skills:
?Good time management skills with the ability to prioritise and multi-task in a controlled environment;
?A commitment to excellence and quality with a great eye for detail and pride in getting it ‘right first time’;
?Demonstrated ability to maintain accurate paperwork and records;
?Reliable, flexible and adaptable, with a willingness to assist in a variety of roles, as required;
?Effective team member, able to assist others, and not afraid to ask for assistance when needed.