RE: 'Important' - Avacta is now regarded as TAM product29 May 2020 23:17
I think this topic warrants a lot more thought than it has been given. If you don't then just ignore this post. If you do then read on.
Businesses are valued on sales, revenue and profit with some goodwill, potential and so on thrown in.
As an example, a local plumber selling his business would expect any potential buyer to take the above into account. Any buyer knows the total accessible market (TAM) as it is defined by the word "local".
The question here is what is the TAM for Avacta?
Given that AVA 6000 is potentially global and the C19 test is potentially global, then the the total accessible market is global. The Affimer technology owned by Avacta is key to this.
What this means value wise is that there is a factor involved (TAM) in the value of the company and I am not sure that this can be calculated in the same way as sales, earnings and profits.
There is a similar situation with Coca Cola but obviously Pepsi are in that very same market, which could be the case for Avacta if a similar test is produced for C19 by someone else. (I am not comparing Avacta to Coca Cola just citing a global TAM company).
It is notable that Medusa19 has global rights for person to person sales for C19 but only a portion of bulk sales, which indicates that additional bulk distributors are to be added. Adding manufacturers has also been mentioned in addition to Cytiva. This can only mean that there is great confidence in the test.
Happy if anyone sees this differently but that is my take and thank you to the original posters amidst all of today's posts.
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