The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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Any criticism of Omega is addressed in this Q&A honestly and fairly.
The future outlook that this maps out is very exciting with substantial upside to be delivered.
If you can't get past the disappointment of delays and see the added value coming here in the next 6 months, investing is not you game.
Only have to see how hard all the idiots are working to spread doubt to confirm where this is heading.
Yep...
...lots of idiots, must of whom have never worked in the field, thinking they can run the company better than the CEO and board.
Its not all the fault of the CEO but he has to take responsibility for its poor performance .. thats why he is paid the big bucks. He and you can only blame the market or the Govt for a period of time before PIs lose interest and move their money.
I am sure if you ran this company and continued to see poor performance, you will be put through the grinder ...
RegulatorUK definitely with £200K a year you'd expect a better performance and pr than this, he is incompetent CEO woth high salary
This was interesting:-
"Avacta is not one of the potential partner companies with a DHSC approved lateral flow antigen test that the DHSC has facilitated discussions with."
mr india - agreed the ceo has to take responsibility for the company as a whole and the performance of the individual departments. especially including PR and sales
I have worked in companies where the sales team were poor - failed carphone warehouse types. they were paid a salary and there was no real incentive - they got paid regardless. Although the rest of the team were great and produced a great service the results were dependent on it being sold. the reputation of the companies suffered as a consequence.
my fear is that maybe ODX are suffering similarly. Are the sales team are as competent as Wally brook.....Colin presumably OK ed that particular hiring.
yes things take time but nobody knows how long the window of opportunity as regards covid will be. Are other companies finding it as hard to sell a test in a pandemic?
The CEO has secured an anitgen test manufacturing contract that every UK diagnostics company wanted and the only other one that got one has been acquired by Gates and Bezos! The CEO has secured a product portfolio that includes one of the best antigen tests in the world and arguably the best antibody test in the world.
Regulation and governments are the roadblock not the company.
IT is clear as can be they are awaiting self test approval before sales flood in for the visitect test.
People can moan about lack of sales until they are blue in the face, and as much as it's disappointing it doesn't change the fact that as soon as the approvals are in place for EU self test, FDA in US and the government chosen test, the flood gates will open for sales and they will catch up on stock piled production. These are the bottlenecks, not the operations of the company which have gone to plan with scaling up capacity and hiring and training of staff.
Big 6 months coming, with profits to vastly exceed the current mcap. Which means big returns for investors.
merchant - lets hope you are right. it is why i kept holding as the price has plummeted.
i suspect on award of the gov contract, ODX took their foot off the gas. was it that they didn't feel the need to hawk the product as much? or maybe didnt even want to for fear of being over run by demand? i dont blame their for the gov behaviour but have they been guilty of keeping their eggs in one basket? for too long?
every day that goes by there are more and more competitors - and seemingly able to sell less efficient products. this pandemic won't last for ever- hopefully!
tick tock
well looks like the UK companies are .... I also feel you could be right on the sales people. These are just distribution agreements they are signing with companies. Those companies then have the choice to choose whichever PCR or Lateral flow test they want to use. I don't think there are any committments or surely sales would have been done.
I can only hope that ODX has a good pipeline outside Covid and things are brewing there. I just came back from Europe and Dubai and there was plenty of options for Covid test kits from other companies from china mainly ... obviously cheaper and inferior but selling definately
I really dont care whether people accuse me of deramping but I want this stock to rise. I am also a realist and frustrated at the continous excuses for ODX ... I ignore the twitter ramps but really hope Colin can announce something in August ... it was again promised in July and nothing
"Big 6 months coming, with profits to vastly exceed the current mcap. Which means big returns for investors."
Is that a cut'n'paste from January ?
"These are the bottlenecks, not the operations of the company which have gone to plan with scaling up capacity "
Not sure everything has "gone to plan", in April we were told we would be producing 2M tests a week, now we have confirmation that they haven't even reached that figure for available capacity and its still a target we are working towards
Computer - as Colin King explained, reaching 2m tests per week was dependant on the DHSC getting out of bed.
By all accounts the plug was pulled when all looked ready to move forward as the focus shifted to self test approvals rather than professional tests.
Omega have repurposed resource to cassetting and pouching and delayed resource through agency arrangements as explained by Colin. They have been through extensive reconfiguration and capex investment. They are ready. They have the resources to deliver significant volumes of tests as explained by Colin in a recent update.
MCAP £97m - gov contract £374m for 50% of the capacity. Go figure it out
@MerchantBanker : Lets not forget that the 2M capacity target was on the cards in October 2020
https://www.investormeetcompany.com/investor/meeting/trading-update-investor-presentation-1/presentation
Before the DHSC contract was signed.
Collin clearly had hopes of the gov contract then.... it said exploring options to achieve these targets. The equity raised would have made things very tight to fund it themselves. Simple fact is having the gov contract which enables them to produce any test is an excellent bit of business, with loaned equipment meaning less cash required to expand. In reality, because of the delay in self test approvals they haven't missed out on sales. Self test market is where the money will be made. This is why you don't see the visitect available for sale anywhere for professional use.
"Q78: Can you confirm if the manufacturing equipment that was provided by the DHSC if being utilized to the maximum to manufacture ODX related products or are we restricted to 1 million a week based on using our own equipment (ie are we not allowed to use the DHSC equipment until they have chosen a product to manufacture)
The UK Government equipment will be used to manufacture tests for the DHSC – not for the production of tests that we will sell to other third parties."
So whatever the % capacity is via the gov equipment, that currently idoing nothing.
Q73: How long will EUA take in America. GDR have been waiting over 18 months. Will this likely be a hurdle for ODX?
We aren’t providing guidance on the FDA EUA process as this isn’t a pre-determined fixed timescale or easy to predict.
Anyone on here telling you FDA approval is any day now is just feeding you unsubstantiated rubbish, CEO just made it clear they don't know and it isn't easy for them to predict. Some here find it very easy.
In answer to Q205.
The Mologic test was not chosen by the DHSC, and our VISITECT would need to complete self-test authorization before being available for the DHSC to consider.
The tone of that first part would indicate that the Mologic test is now totally dead in terms of its possibility of being the gov test.
Q29: Is Antibody Lateral Flow Test Visitect still existing product or was it dropped due to lack of commercial interest? Sometimes in your communication with shareholders company itself and Walbrook don’t even mention it anymore as a part of the product range.
With regards antibody test, we are focused on the UK-RTC product, initially this product was for the UK market and our Visitect for other markets, however as both tests are professional tests we didn’t want to compete against each other.
I'll leave it to the reader to determine where you heard it first that the tri-antibody test was dead (hint it was me).
Q89: Any updates on getting money from the antibody consortium for the order placed by the DHSC for the antibody test last year?
The outcome is dependent upon Abingdon Health’s discussions with DHSC and whilst there has been some progress made, it is difficult to give timeframes for payment at this time.
It's likely to be paid at some point, so that'll be extra into the revenue line at some stage.
Although asked about 10 different ways, the consistent reply was that they were not going to give current production levels, previous production levels, total production levels, amount of units in stockpile or margins. This is the same company that was happy to given an unconditional forward looking statement of"we'll deliver 2M lft per week in april"
I understand not revealing margins, that's far too much to give away to potential competitors, but for what is solely a manufacturing company not to give any historic figures of stuff manufactured is a bit weird.
Q115. I think that's basically saying we are cassetting & pouching for Surescreen. Wasn't even a leading question really. I assume we'd invoice Surescreen? Didn't they receive 25m this month from Gov?
@computer909, in defence of ODxX(did I just say that ?), where it says "Exploring options to achieve these levels of production", that related to the darker red areas of the chart, which relates to beyond 900K or so. I recall that being teased out in more detail in the audio at the time.
Look at Tom trying his best bless him. Get them teeth fixed bud. Move along stop wasting your time.
Q78 - well yeah thats exactly what they have been saying - waiting for DHSC test - casetting and pouching in the meantime.
Q73 - FDA approvals - were GDR part of the Radx fast track program and awarded $10m like our partner? Do GDR have high quality lateral flow test matching the requirement of FDA? Have GDR just been acquired by Gates?
In answer to Q205 - As Colin King has said, the Visitect test once it gets self test approval would be available for future DHSC purchase
Q29 - The advantage of ODX strategy in having a diverse portfolio is they can flex capacity to demand. I dont think anyone has had high hopes for significant sales volumes in triple antibody test.
You are full of crap looking for holes to pick to suit your agenda.
TWatcher,
Please can you identify the comment from Colin re Avacta
I’ve missed that one, was it the last Q&A ?
@Okehurst1
Q47: Will ODX make the Avacta AffiDx test for the U.K. Gov? And if so, how long would tech transfer take for this product?
Avacta is not one of the potential partner companies with a DHSC approved lateral flow antigen test that the DHSC has facilitated discussions with.
Apologies: When they said
@OmegaDiagnostic
Apr 30
We fully expect, once we have The Department of Health and Social Care (DHSC)'s licensed test confirmation, to rapidly move towards full utilisation of our 2m tests per week capacity.
"Our 2M test per week capacity", not target, i assumed that is what they had, silly me !
"Q73 - FDA approvals - were GDR part of the Radx fast track program and awarded $10m like our partner? Do GDR have high quality lateral flow test matching the requirement of FDA? Have GDR just been acquired by Gates?"
Hey, Maybe you should tell the CEO that, because clearly the inference from you is he had no idea about any of it when he said
"We aren’t providing guidance on the FDA EUA process as this isn’t a pre-determined fixed timescale or easy to predict."
Yawn