RE: April 1st 202025 Jul 2020 12:51
I agree to a certain extend Soup, but I don’t see much in the RNS (strategy extract below) to suggest they will be ramping up in house development staff. They say they need to diversify (which I take as refocusing) rather than necessarily increasing costs. Presumably, unless they add bodies in house, existing personnel will just be used differently?
If they were to increase numbers/costs, the extract below suggests to me that those costs would be matched by additional short/medium term income streams rather than by placings.
Strategy
The opportunities for our business are still there. Our confidence remains in our people, technology and products. Our business model is one with very low operating costs, but we must now look to diversify the means by which revenues are derived, as we have already started to do. Our strategy will therefore take three approaches, each underpinning a balance of risk and reward and timing of returns and revenue generation. We will:
1. Undertake technology licensing agreements centred on our IP and provide fee-for-service work to third parties producing their proprietary products, providing Nuformix with short-term revenue streams
2. Apply Nuformix's IP to produce our own proprietary product opportunities for short-term development and out-licensing, providing potentially larger, medium-term revenue streams
3. Evaluate co-development opportunities, with third parties, of generic products where Nuformix's IP provides renewed patent protection, allowing access to more rapid development to market and risk-share appropriate for Nuformix
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