Winner takes all?19 Mar 2021 08:40
Up to now everyone has been agreeing that there will be plenty of demand for all U.K. lft test producers. Perhaps we need to revise that. There are still lots of unknowns but my take on the current situation is this:
1 The ‘sovereign’ test is a separate government (pa consulting) led exercise to manufacture a U.K. test to a common spec across a range of manufacturers in the U.K. The recent ODX and GAD manufacturing awards are related to this initiative.
2 The DPS 8bn procurement is for branded lft tests in addition to the sovereign supply. The recent ODX and GAD manufacturing awards are not related to this. The idea behind this procurement is to make up any shortfall in sovereign supply if needed, but also to provide a competitive comparison to justify expenditure under the sovereign supply. And I suppose it will allow the government to buy a revolutionary 3rd party test should one come to market unexpectedly.
I reckon that most manufacturing capacity in the U.K. is currently reserved for the sovereign test. Explains why recent Avacta communications about U.K. capacity for the Avacta branded test is rather modest. I do still very much think that the sovereign test is based on Affimers - initial results for our test beat Mologic. But I also think that the government are deliberately keeping the make up of that test fluid - medium term it may migrate to the combined Avacta/Mologic super test but in the short term all will depend on final S&S results - and hence the vast majority of the U.K. manufacturing capacity may pivot between Avacta and Mologic....
So should clinical results disappoint a bit, its all very well to say we can just sell internationally but if our manufacturing capacity is curtailed by Boris then that becomes an issue. Perhaps Medusa could come to our rescue....
In the other hand if results go our way, the available capacity may go way beyond what anyone is expecting right now.....