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Twatcher - ODX will get £1.50-£2 per test supplied. 2.25m tests out of the remaining 9m. Abingdon will receive the same for the 50% they produce. The net profits after all manufacturing costs and other costs are met are part of a profit share agreement. So Abingdon are in the same position as others save the fact they have twice the production.

One other point occurred to me whilst walking the Dog. You might think from what was discussed earlier that 10/15m is the upper limit of orders. The point of the funding agreement is to finance the first orders given Abingdon cash position and the need for the outlay to supply government. It can reasonably expected that after the first few orders Abingdon and the rest of the RTC should have sufficient working capital for the profits generated. This is a short term agreement, to be replaced by a longer term supply agreement as noted in the agreement.

Colin King in the last presentation when talking about the Mologic Antigen tests, due to start Tech transfer in a matter of days.

"We'd need to see the exact terms of the framework."

Here's the problem. We are not seeing it. We know they are going to order them, Abingdon know, ODX know..... but because of politics the market takes the p because of a 1m order. If they have gone to the trouble of setting up a consortium and only buying 1m tests it will be one of the biggest embarrassments of the covid handling! And there appear to be a few contenders!

Personally i have zero doubt that this antibody test will be in sufficient demand to far exceed our capacity. The question becomes how much does government fund and when do they release it for direct purchase. 9m tests uses up the 200k capacity for 11 weeks.

Agree 9m to be ordered at least. I think its certainly more than 90% likely this will happen. You don't go and agree a £1m mortgage if you only intend to spend £100k on a house. The problem with going ahead and doing it is that then the public would have an expectation they can get one of the tests and they clearly don't want the public to have them yet.

The interesting bit is where it says if approval is not received by 25 dec, DHSC has the right to cancel all outstanding orders. Where are these outstanding orders, as so far we have only seen 1m which we are told was never intended for self use?!?! We are definitely being served an injustice by only having a confirmed order in the public domain of 1m tests, that i am certain of.

I believe by derogation i think they mean a relaxation of the current imposed law preventing the sale of tests for self use.

Twatcher yes i may have been a long way off on 40m tests, but that's a factor of 4 not 10. I was making an assumption that it wasn't for the full cost of each unit. Having looked at the Abingdon prospectus i now have the full picture thanks, i'm not afraid to correct my statements. I never once said they had received £10m, only there is a £10m agreement. The cost price to Omega is not all raw materials. In their cost price they have labour, machine depreciation, overheads. Probably with the high volume output that's probably minimal so perhaps 60-65p might be right.

So the prospectus says 10m tests. So £10.3m to supply 10m tests and they currently have ordered 1m. So we are guaranteed another 9m ordered. With scope to go to 15m. That's exactly my point backed up by Abingdon prospectus that there is already more than 1m tests on the table with the government.

Yes its there in the link!!! It's a funding agreement for £10.3m. You cant argue with it it's in black and white!

I don't care if £1m is in Abingdon's bank or £10m, i never said they have received £10m to date, it's all going to end up in suppliers accounts. The point is they saw fit to agree a £10.3m credit facility for the purchase of components to supply an undisclosed amount of tests, funding agreement, letter of credit whatever you want to call. Clearly £10.3m not just 1m tests.

https://atamis-1928.cloudforce.com/sfc/p/#0O000000rwim/a/4J000000kE0b/4GX1_UMogDlN5UZ6w.bYa9R.LIbF5wHYLUljGrLS6gk

The fact they have gone to the trouble of blacking out the number of units is interesting!

https://twitter.com/MerchantBanke18/status/1331621596776329219?s=20

Twatcher i know the 1m for the app is not for materials. See previous post i've apologised i didn't realise the prospectus stated cash upfront, i was wrongly deducing you had picked up the 1m figure from the app funding. But my point about £10.3m of funding remains.
Not really sure what we are trying to debate here now there is an upfront funding facility whether Abingdon hold cash or otherwise.

TWatcher - i stand corrected on that, i have not committed the prospectus to memory. But that's even better and it doesn't change the fact there is a financing letter for £10.3m for components whether they hold cash or have . Referring to part C of the agreement,
1 If supplier requires payment upfront, DHSC will pay upfront,
2 Payment on delivery DHSC pay abingdon on delivery, abingdon pay supplier on deliver
3 Supplier paid on terms, DHSH pay in time with terms

I'm not personally concerned with how much cash Abingdon are holding upfront vs what has already been paid and what is still to be paid. The point is there is finance for £10.3m of components.

Twatcher - sorry disagree

1M units have been purchased at an undisclosed purchase price. Lets assume £5 each. £5m.

Prior to that the government have agreed to pay for £10.3 worth of components. Abingdon buy them and invoiced the government. Its not cash upfront it's reimbursed expenses. It may be that £500k of components is used in the 1m order. Therefore the amount due for the 1m order £4.5m.

There are two distinct contracts.

1 Funding for the advance purchase of components and
2 the purchase of 1m tests.

Clearly £10m of components is more than 1m tests

The £1m Abingdon received from the Government is for the development of a smartphone reader App

TWatcher no it's not.... it is a letter of credit for the purchase of £10.272m worth of components in order to make an undisclosed amount tests for future supply to the Gov.

https://atamis-1928.cloudforce.com/sfc/p/#0O000000rwim/a/4J000000kE0b/4GX1_UMogDlN5UZ6w.bYa9R.LIbF5wHYLUljGrLS6gk

There is going to be money handed out left right and centre over the next few weeks/months. Gov contracts though are not a necessity for ODX. Just need to keep making them, they have many routes to market in many geographies. Commercial reality is non gov sales are more profitable.

No it's £10.3m for components, which makes a lot of tests

https://bidstats.uk/tenders/2020/W45/738394601

Also the tender for antibody tests is no longer up for grabs they are not inviting any other bids. Its UK RTC test all the way.

UK RTC already have a contract for first 1m tests plus £10m quid for components for the next batches. That's probably 40m tests+

Reminder of the UK RTC roles - Abingdon 50% production, Omega 25% production, BBI 25% production. Ciga assembly services and distribution.

"Under the agreement, Abingdon Health will undertake its own manufacturing with Omega and Northern Ireland-based BBI Solutions also manufacturing and supplying AbC-19 Rapid tests to Abingdon Health. CIGA Healthcare in Ballymena in Northern Ireland will carry out assembly services."

https://www.insider.co.uk/news/medical-diagnostics-company-signs-deal-22867714

My guess is Ciga are there fore something else. But we already have more concrete evidence UK RTC are involved in the lateral flow procurement.

It's dodgy because PI's allow it to be by being easily manipulated.

Okehurst - Haha i really hope they clear that one up sooner rather than later!!!

I think the first bit of news will be Mologic announcing CE mark and ODX TT.