Utilico Insights - Jacqueline Broers assesses why Vietnam could be the darling of Asia for investors. Watch the full video here.
For those interested, a bit of reading from the European Centre for Disease Control from earlier this month, highlighting the increase in STI’s (including Syphillis, one our new tests), and commenting about how early testing is crucial. Just seems to me that the “embarrassment” factor might stop many from going to the docs, another reason why discrete at home LFT testing might benefit.
https://www.ecdc.europa.eu/en/news-events/sti-cases-rise-across-europe#:~:text=In%202022%2C%20the%20number%20of,and%20chlamydia%20cases%20by%2016%25.
If these new tests are built on the Senzo ALF platform, then that might well explain Yates decision to invest because everything I’ve read suggests that historically LFT’s have struggled in the STI market because achievable sensitivity was too low and that is precisely what the ALF platform addresses.
I enjoy it Metatron - gives an old fogey something to do!
As I say, I do have a suspicion that these new tests may be built using the Senzo amplification platform. I’ve already given some reasons why in earlier posts, but another is that this lady regularly began reacting to ABDX posts from at least 4-5 months ago, and she very quickly reacted to Abingdon’s LinkedIn post about our new relationship/investment by commenting; “ Congratulations, Chris and team. Desperately needed tests for individual health and public health.”
Why is that relevant - well she is an IVD consultant who has been advising a company called Bioadvance Ventures since 2022, a VC company that counts Senzo as one of it’s investee companies.
https://www.linkedin.com/in/cfinkmdte/
https://www.bioadvance.com/portfolio/
By trawling through various US state registries I’ve now found Find Out From Home LLC, registered in Delaware on 9/8/23.
https://icis.corp.delaware.gov/Ecorp/EntitySearch/NameSearch.aspx
Morning Lucksin.- don’t get me wrong, I am still very positive about ABDX for very good reasons and, yes you’re right that getting a foothold in the US STI market when STI infection rates there are a huge and growing problem, is a boon. But whilst £500k may not be a huge sum, it does represent more than 10% of our last years total revenue and I think it only reasonable for any shareholder to want a little more comfort about the companies and people were investing in, particularly when we’ve been so focussed on getting to cash flow positive. So I was disappointed ABDX couldn’t be more forthcoming.
But strangely, it’s Yates willingness to make this play when break even is so paramount that gives me the most comfort. I just can’t see him doing it unless he was forced to (and if that were so I’d have thought he’d drives much better deal), or that he sees huge potential.
https://www.nbcnews.com/health/sexual-health/sexually-transmitted-infection-rates-rose-older-people-cdc-rcna145332
For info, I wrote to ABDX For more info about Devyn, FOFM, or Yannick Namia given none appear to have much, if any, online presence. Disappointingly, ABDX simply replied to say that parties they’ve contacted with are registered in the USA - they gave no other pointers or comfort, despite our potentially waiving £500k in fees to acquire equity.
From what I’ve been able to ascertain from my own searches, Yannick Namia is a bit of a serial entrepreneur in the health and well-being space, who says his businesses have turned over €100m. He had a business, Devyn LLC, registered in Austria which he voluntarily liquidated last year - it apparently had €710k capital assets on liquidation. During Covid he ran a home testing service company in California, and now runs business promoting sexual education and health. He also has a business, Devyn Inc registered in Florida, which became Devyn LLC in 2022. I am assuming this is who ABDX contracted with. I can find nothing about FOFH.
So, it looks to me like we’ve been developing tests for a serial entrepreneur about which I can find little, and are intending to spunk £500k fees for equity in his business. I still think these tests might well have something to do with Senzo, and very much hope that Yates sees significant potential for a £500k fee waiver, but I have to say that Abingdon have been extremely poor when responding to my simple requests for comfort and clarification in this respect.
Comments made about FOS Fee consultation. For those unaware this might be useful
Basically a proposal to charge CMC's the fee, given the account for 20% of cases brought but over 50% of cases not upheld.
https://www.financial-ombudsman.org.uk/news/financial-ombudsman-service-reports-performance-improvements-consults-plans-reduce-costs-businesses
Easy solution - any claim brought by a CMC to FOS that they lose, make them pay the admin fee. At the moment they do little work apart from put together some generic standard paras and market themselves to public on the promise of "what have I got to lose". Putting that at risk for spurious claims would reduce the number!
Right, so ABDX finally put a media post out
https://www.linkedin.com/posts/abingdon-health_london-stock-exchange-london-stock-exchange-activity-7178041844059021313-DZLH?utm_source=share&utm_medium=member_desktop
Liked by Yannick Namia, CEO of our new investment
https://www.linkedin.com/in/yannick-namia/
Thanks Ant, but nobody should look to me. I just post stuff I find, and my own thoughts, much of which may be irrelevant or rubbish!
But in that vein. and in the short term..
IMO this is being held back because the market is concerned about a raise. Regardless of what I think about that, a Director buy would help massively. It would show confidence in the business and indicate that no discounted raise in which they might otherwise participate is on the horizon.
Salistick FDA approval would spark interest from the many out there who think that is our one and only product.
I think we will be launching another test in boots in the pretty near future (weeks according to Crest Medical)
PW - thanks for posting the article, which helps describe the scale of the STI problem.
I haven't been able to shake the thought that somehow these new partners might have come through Senzo. This latest RNS says we have been working with them for 12 months, we announced the Senzo partnership almost 12 months ago to the day, and both the new partners and Senzo are based in the US.
https://www.senzo.com/newsroom/senzo-and-abingdon-health-enter-into-strategic-partnership
So this might also be interesting. Its a blog from Senzo about STI's which again details the scale of the problem and highlights that getting LFT sensitivity levels up when looking at STI conditions has been the main headwind in development. Of course, the whole point of Senzo is to increase sensitivity to PCR levels through its ALF tech.
https://static1.squarespace.com/static/63174674e5302f1a8f9e9dbc/t/659ae1c8fc1f77528ed44d4b/1704649165514/FDX+-+STI%28s%29.pdf
It does worry me that I can't find anything about our new partners, and nor have ABDX put out anything on their media feeds about this news so they're not screaming it from the rooftops - I have written to ABDX to see if they can give me anything more. But if we are looking at an LFT for STI's that meets required sensitivity thresholds then the market looks massive. And of course, by buying into a US based company we are getting a foothold in that jurisdiction.
I think the latter also.
He’s essentially making a growth acquisition from cash flow, without a raise. The fact he feels able to do that, just a week or so after confirming no raise expectation in 2024 and given his laser focus on cash flow break even, strengthens my belief that current revenues and forecasts are more than just robust.
True, assuming the £500k all relates to future cost, and not cost already accrued.
Either Yates has been forced to take equity because there’s no cash, or he wants to take equity. If the latter, then it suggests strongly that he sees real growth potential in the project and expects it to accelerate progress to cash break even and beyond
Don’t really know what to make of this - scattergun thoughts are;
I can find nothing about Devyn LLC, Find Out From Home LLC, or Yannick Namia, which is odd.
The “LLC” suggests they’re US companies. That’s been a real growth area for us.
A £500k stake for 23% values FOFH LLC at over £2m. Not bad for a new unproven enterprise.
Are we investing because we want to, or because they can’t pay the fee? Great if the former - suggests real enthusiasm and potential.
I’m wondering if these new tests might be molecular or based on Senzo ALT tech
Honestly, on the face of it it looks great, but it’s difficult to add colour because there’s little else to go on.
As an aside, it’s interesting they brought the interims forward only to announce a succession of news thereafter.
Yup. We’ve spent the last couple of years rebuilding on a prudent fee for service model, diligently growing our quality customer base. Through 2024 we will see more and more customers commercialising and requiring manufacture. That hopefully will produce a regular and growing annuity income from which further growth can be funded.
This thing sells itself imo. We just need more investors to look under the bonnet, but I’m happy to keep accumulating until they do.
A bit more colour to the ABDX proposition
https://www.abingdonsimplytest.com/own-brand-diagnostics-products-navigating-challenges/
ABDX certainly now pushing this OEM/private label as a new service to retailers
https://www.abingdonsimplytest.com/knowledge-centre/private-own-label-solutions/