Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Does anyone know the sales value of Matrixyl please?
This could set a target for the level of potential sales for our lysate. Indeed, our sales may surpass this eventually, let’s hope so.
Not only that but at a 10% royalty it would also give us a target for our level of royalties.
So a useful bit of information if we have it.
Winclove’s turnover seems to be around $22m or £16m.
It’s impossible to know how much product has already been produced for Sbtx but it’s incredible that we are their second largest customer BEFORE launch.
Thanks belgrano for sharing this and thanks also to elrico for the sterling work.
Thanks elrico
I would assume that the preliminary scale-up batches will have been used by the brands for development and formulation work.
I know from previous experience that any new formulation or reformulation will need to go through various stages of development and testing e.g. stability tests, compatibility tests etc.
All this takes time as well as conducting the user trials and marketing activities that follow preparation of the product.
Having said this, production of the final 20k litre batch must mean that much of this work should have been completed and will be used for full scale production so I’m thinking we may not have too long to wait for some announcements. GLA
belgrano, I think you’re spot on with this post. Important to keep our feet firmly on the ground.
When I heard the latest interview with SA and it was mentioned that interest was growing ‘at an alarming rate’, we need to be sure what this means.
For me, ‘alarming’ could mean a concern about being able to fulfil demand. If so, it‘s kind of a nice problem to have. Let’s hope this interpretation is correct. Surely, why else would you be alarmed? If you can get confirmation I think everyone would like to hear that.
Also, you mentioned in a previous post that the 50k mark for registrations had been reached some time ago. Is this absolutely for sure? Does it come from a reliable source do you know?
Delighted with progress so far though. SA and team doing a great job but ultimately it really does all come down to confirmed numbers. That’s what we need to know.
Just listened to the interview.
Stuart’s words; ‘pre-registrations are continuing at an alarming rate’.
They’re very happy and so am I .
GLA
There’s an interview today with SA on proactive investors.
Can’t provide the link as I’m on my iPhone but it’s easy to find.
I haven’t listened to it yet but should be good.
This is a difficult question to answer I know, but does anyone have a view of how many subscribers will be included in a ‘soft’ launch? I guess this is market sensitive information so we won’t know until maybe an early November RNS.
I’m not at all concerned with how the warehouse space is described. I too am familiar with sq. meters being used.
I suspect we’re working with a third party logistics provider or 3PL, I hope we are, as there are many such providers in the Netherlands. This area tends to be used as a logistics hub due to its close proximity to the big cargo ports such as Rotterdam.
Working with a 3PL has many benefits as it would enable us to acquire more space only as we need it. We don’t want to be paying for space now if we’re not using it. Let’s keep it lean and mean. Just my thoughts.
I’m beginning to think SA may be a genius. Coinciding the launch with National Psoriasis Day, providing incredible marketing opportunities. This is dreamland.
I’ve been thinking about what would be the best launch date.
This is probably stating the obvious, but all things being equal, I wouldn’t want to launch a new product in the run up to Christmas, not if I didn’t have to. I know home delivery supply chains are now much more robust than they used to be but I would prefer to launch during the quieter October season.
I’m just guessing of course but if they can achieve this I think they’ll try to launch as early as possible in Q4.
All of a sudden I have become interested in the subject of royalties and their calculation.
I’ve found a KPMG report and it’s interesting reading which I’ll try to summarise.
It appears that royalties are almost always expressed as a percentage of the net revenue earned from selling the product i.e the selling price after deducting sales tax or VAT as in the UK.
Moreover, royalties are seen as a form of profit share and therefore the product’s gross margin is an important determinant of the level of royalty.
Therefore, if a product has a high gross margin of let’s say 70%, any calculation of profit share or royalty would be based on sharing this 70% margin, although of course not equally.
But suffice to say, generally the higher the product’s gross margin the higher the royalty rate.
Now, which type of product in the market enjoys one of the highest gross margins?
Yes, you’ve guessed it, cosmetics products, where I know from personal experience margins can be obscenely high.
In this report, the range of royalties across all industries is reported as varying between 4% and 12% depending on gross margin.
So, when Elric mentions double digit royalties this does tally with what this report is saying.
One note of caution. In the world of cosmetics the brand is seldom the retailer as many brands sell through concessions etc. In these situations the royalty would I think be based on the price at which the brand sells to the retailer which may be perhaps half the RRP. But for me this is a great place for Sbtx to be in.
Hope you found this as interesting as I have. Happy Friday everyone
I’m not doubting elric’s insights for a moment, but if we do receive double digit royalties on potentially millions of units sold for anything between £20 to £50 a pot, if not at an even higher selling price for the really premium brands, the revenues could be off the scale.
Do we definitely know the royalties are double digit? Where has SA confirmed this please? It would make my day!
Belgrano, agreed, I don’t think we’ll need additional investor interest if all goes well but it would still be great to get out of Aim. I think we’d all benefit from fewer unusual movements in the share price, hence greater certainty with the value of our investments and greater market liquidity also.
Here’s a thought a little off topic but quite interesting I think.
Opti always used to talk about a Nasdaq listing once they gained a sufficient foothold in the US market.
Given that Sbtx may develop a large US market for AxisBiotix, and almost certainly for the Sederma cosmetics ingredient, doesn’t this put Sbtx is a prime position to consider a listing on Nasdaq themselves.
If anyone is going to the presentations and thinks this is an interesting scenario to discuss maybe a question could be put to SA. Any thoughts?
I take a slightly different view regarding the communication of this appointment, if indeed it has happened.
I remember the days when Opti would seemingly issue an RNS almost every Tuesday (a slight exaggeration I accept but not by much) and it didn’t seem to speed up the development of the company one iota and it hardly ever moved the sp favourably.
I actually prefer the apparent approach of Sbtx, i.e. inform the market when something measurably important happens, perhaps once this new recruit has secured an important new agreement. I’d prefer that. GLA
Thanks belgrano
Very reassuring.
I have actually been reading and listening to everything connected to Sbtx over recent months, that’s why I’m heavily invested here too.
It’s simply my wish to see the launch well executed and I suppose a little bit of impatience too. Once this is achieved there’ll be no holding us back in my opinion. GLA
Hi Nick
I’m an old sceptic too and really keen this is confirmed.
If there is close cooperation between this foundation and Sbtx it must surely increase the likelihood of a successful launch, perhaps even being oversubscribed.
To be able to advertise in front of a captive audience who you know is interested in your product and with the support of their foundation, which would seem tantamount to an endorsement, would be a dream. Let’s hope it’s right. GLA
Hi belgrano
I’ve been on the National Psoriasis Foundation website but haven’t seen any adverts. Is this the US website in question or is there another?
I completely agree with your earlier comments, any strength in prospective sales indicated at launch could propel the sp much higher.
That’s why I’m keen to see the adverts myself.
I did previously point out about two weeks ago that I had seen an article/podcast on this website describing the link between the gut and skin health. It seems this may have been a precursor to running the advert if this is the website in question.
Are you able to confirm please?
Brilliant news if it is.
I was just browsing on the the National Psoriasis Foundation (USA) website.
I found a prominent article/podcast on their front page dated July 19 2021 I had not seen before and titled ‘The gut and psoriatic disease connection’. The article and podcast are with an NYU academic.
Great to see such prominence given to this subject on their front page and maybe, just maybe it could be the precursor to cooperation with a certain product launch we have been waiting for. GLA
One thing is for certain. I’m not going to mention tax again. The share price went down as soon as I did :-)