I came to exactly that conclusion too. Someone has to do it, it's worthwhile, but probably not very lucrative per sale and therefore risk with limited financial payback. Social payback, absolutely.
This bothered me from recent CD4 news release, "feasibility testing" (It should be past that) and "acceptable performance" (what precisely does that mean, how accurate, what miss rate? 1 in 100 miss, or what? Is it 100% accurate, I guess not).
"The Company confirms that results from feasibility testing show acceptable performance against design goals and accordingly, the Company has progressed into a formal optimisation phase within its design control programme."
Yes Carefully Does It, I would guess that the margins on the HIV test are likely to be quite low to make it affordable to the organisations in developing countries, such as Nigeria, which will be buying them. The company should be congratulated on developing a cheap and rapid method for assessing HIV infected patients even though it is unlikely to make much commercial sense.
Personally I can see the share price manipulated down to facilitate either a merger or takeover. What ever happens from here you can guarantee that the only people to benefit will be the chosen few.. I.E the largest holders.
No doubt they will all be patting each other on the back soon saying how clever they have been....Wonderful thing insider deals aren't they.. Maybe they could all apply for American citizen ship as they would be well suited over there under the current row gene
"Scottish biotechnology firm hails progress made with HIV test
4 hrs ago"
"The Clackmannanshire-based biotechnology firm said feasibility testing of a device for identifying people with particularly low white blood cell counts has been successful, increasing confidence in the potential of a product for which there is a significant need.
Chief executive Colin King said the company was developing the product at the request of large non-governmental organisations, including MSF, working in poor communities in areas such as Asia and Africa.
He said the NGOs saw particular value in monitoring for cases of advanced cases of HIV as the patients concerned could be at risk of contracting other diseases.
The device is designed to give quick results, without people working in remote locations having to send samples off to laboratories. Mr King said sales of such a device could run into millions.
Aim-listed Omega hopes to have the product ready for commercial launch by the end of the current financial year.
The company needs to complete two further stages in the development process, including testing the materials and components it would expect to use in the finished products and submitting the devices for external tests.
The devices are designed to identify people with lower than 200 CD4+ T cells per microlitre of blood.
A healthy individual will have a CD4 count somewhere between 500 and 1,500.
In November Omega won clearance to sell a version of the Visitect CD4 test on a business to business basis in the EU. The version can help identify people with a CD count below 350, who may benefit from anti-retroviral treatment.
The company has applied to sell the devices in five African countries including Nigeria with six more applications in preparation.
It has appointed a distributor to sell them in Nigeria.
Omega spent years developing Visitect, which it has described as the worlds first instrument-free and affordable rapid test for determining CD4 threshold in people living with HIV."
Price being nicely manipulated upwards with FD buying around £16k worth of shares which in the context is irrelevant but very important psychologically as it has the shares in a new trading range of 14-20 as opposed to 9-12p. Well done - Sneller must have given the advice - If CD4 is commercialised to its full potential then we should see 50-60p range in 24 months.
Today the BBC reported that Malaria was on the increase! The Melinda and Bill Gates foundation announced increased funding for fighting Malaria. Last week the Pune malaria test manufacturing place was announced for closure. It lost £400,000 in its first year of operation and would continue its cash burn into the future. So it's investment is to be written off.
It all makes sense except for the news on the fight against Malaria- tests should be part of it. So someone has got to be interested in the Pune setup. There's a deal to be done for anyone with a brain.
Eight years of waste several dilutions of shareholder value and as a result we are all substantially poorer. Writing off goodwill has littel effect on cash in the business. The ongoing lease on the sale and lease back ties up cash unless they can get out of it.
In 2010, the group acquired the IVD division of allergy and specific immunotherapy specialist Allergopharma Joachim Ganzer KG, giving further access to a range of allergy tests for over 600 allergens. This gave the group a position in allergy testing that could be exploited in two ways. First, by driving international sales of current products through its existing global distribution network; and second by delivering a panel of automated allergy tests in conjunction with Immunodiagnostics Systems IDS-iSYS platform.
In the following year, the group founded a wholly-owned subsidiary based in Mumbai, India providing access to the Indian market for the sale and distribution for the Group companies' products.
Sale and leaseback of the building owned by Omega GmbH
Omega (AIM: ODX), the medical diagnostics company focused on allergy, food intolerance and infectious
disease, announces that it has concluded the sale and leaseback of the building owned by its wholly owned
subsidiary, Omega Diagnostics GmbH.
The Company will receive gross proceeds of 800,000 and has simultaneously entered into a contract with
the new landlord to lease the facility back over 15 years. A rent deposit of just under 100,000 will be retained
by the landlord initially but which will reduce in stages of five-year periods.
As announced last week, the Company is proposing to raise funds from new and existing shareholders via a
placing and open offer, subject to shareholder approval which will be sought at the General Meeting on 18
July 2017. The proceeds from the building sale will be used by the Company for its accelerated growth
strategy as outlined in the circular sent to shareholders on 30 June 2017.
I agree with your views on the wasted funds/time re the plants in Germany and India. Howether
I believe things will now rapidly change and the company will be sold. My rationale is that I recently held Cyprotex and then Quantum pharma... ( Take a look and draw your own conclusions )
I would image that Harwood have already given them guidance. Hence the new strategy re the trading update... My only hope is that funds will not be raised via a loan note issue which will stifle any growth in share price until it is sold.. personally I hope they are looking at a quick sale at a profit.
I would imagine whatever transpires over the next few months. Harwood together with R Sniller will be holding a bigger percentage of the company.
Richard Sneller must be pretty sick this morning. Though I assume he was one of the major shareholders whose feedback led to all this.
I also find the closure of the Indian operations ridiculous, having wasted so much time and effort getting them up and running supposedly satisfactorily.
I can't believe there's too much downside now after this morning's markdown, and also given that the share price declined markedly recently anyway in advance of this news, but then the markets often overdoes things.
The company are telling us that good news is due soon re (1) Allersys and (2) CD4. Let's see management delivering on these promises soon for a change.
The price plunges to new lows. I have been buying as funds allow. Wonder if I'm catching a falling knife very skewed portfolio. Showing tens of m's paper losses.
The sellers seem to be speculators moving on cutting their losses. It's my understanding that none of the large shareholders has sold out. Small sales and purchases move the price the fundamentals remain the same.
The £800,000 write off of goodwill has no impact on cash, there's plenty of that still left from the share issue.
Looking at Immuno Diagnostics they seem to have chopped and changed CEO several times in the last year. How can any negotiations progress when the head man keeps changing? They have to begin again every time. IDH has a pressing need for tests to run on their machine that hasn't changed except for the Italian Chinese company they signed up with. So it's difficult to believe the deal won't happen.
However could this be a ploy to take the company private? Offering a small premium over the 14.75p and cleaning ordinary investors out before a trade sale.
Immunodiagnostic have concluded a deal for more tests on their analyser we still wait for a conclusion to the talks that started over a year ago. Meanwhile the share price falls!
Immunodiagnostic Systems Holdings plc
Partnership Agreement with Technogenetics srl
Immunodiagnostic Systems Holdings plc ("IDS"), a specialist producer of manual and automated diagnostic testing kits and instruments for the clinical market, today announces that it has reached agreement with Technogenetics srl ("TGS") to enable IDS to sell TGS's range of assay kits under the IDS brand, on a global basis.
TGS produces a broad range of CE approved CLIA automated assay kits for use in the fields of autoimmune and infectious disease diagnostics, which have been developed for the IDS iSYS analyser. This agreement follows a more restricted arrangement where IDS sold a limited number of the TGS assays in a small number of European countries. The new agreement, which runs for an initial period of ten years, gives IDS the right, subject to obtaining the necessary regulatory approvals, to sell the kits under the IDS brand on a worldwide basis.
Jaap Stuut, CEO of IDS commented:
"We are delighted to have reached this agreement, and look forward to working with the team at TGS as we commercialize the IDS iSYS Autoimmune and Infectious Disease assay portfolio. We now have access to a further 50 assays in additional territories which will complement our existing endocrinology portfolio and add to our competitive position as a result of the increased menu on the IDS iSYS.
During the next financial year we will focus on obtaining regulatory approval outside Europe for these assays and on driving further commercialisation as soon as possible."
Happy New Year folks- looks like I'm the only one posting.
Whilst waiting for some positive news to turn around the recent falls in the share price to below the last funding excercise at 18.50p I reviewed the final accounts.
Three directors have share options expiring on 10/12/18 at 19p
Numbers as follows:-
representing over 1% of the currently issued shares of 1.3mm with a free float that I estimate at 30-40%. with current price well below the 19p excercise price they have year to get the stock price above the 19p level. It would be nice to achieve the 27p level estimated by the in house broker.
The slow to fruition IDS deal is stated achievable before the financial year end i.e. 31st March 2018 perhaps that announcement will stimulate the price towards the 19p plus they need to make a profit.
On the other hand they may take the opportunity to award themselves new options based on the current 16-17p price level. Lets hope that that Richard Sneller and the other institutional shareholders who own 57% of the company kibosh that idea.
You say the volume of sales has been low, this is true. However even with a higher volume of sales of allergens the fundamental problem of the huge losses of this division remains. Annual losses by the allergy division approach £500,000 sales are only a few million.
At present each sale doesn't cover it's overhead allocation. The million pound grant lessens the development pain.
Infectious diseases loses £250,000 a year. At least something is happening there. The Pune facility is at least up and running although it will take a double shift production schedule to produce profits.
So let's hope for some positive news on the Immunodiagnostics distribution agreement in the New Year.
For those with long memories the share price was 35p s few years ago before the dilutions and Joachim Ganzer purchase.
IDH wanted to buy their allergy business. They had £30,000,000 in cash, £15,000,000 would have been a nice price- resulting in lots of development cash a solid balance sheet.
IDH already had the distribution rights in many geographic areas so they are talking about relatively little. Unless of course they are really talking about the terms of a merger between two or more parties to create critical mass. Then the protracted discussions might be explained.
The hammered share price below the two diluting issues at 23p and 18p says the market does not like it.
"The untoward pie in the sky IDH allergy deal has been in negotiation for over a year! It's like Billy Bunter's postal order never arrives but always promised".
The market is disappointed hence the drop on the news. More allergy tests approved but no deal announced. Surely both together would have been possible instead repeat the grant amount and state that more tests available.
When and where will the sales start flowing?
On what basis? As a long term holder we have been here many times before.
The untoward pie in the sky IDH allergy deal has been in negotiation for over a year! It's like Billy Bunter's postal order never arrives but always promised.
It will be six months before the "headwinds" effect is known. The interim statement of two months ago gave the impression everything was on track- well it wasn't we live with the consequences.
"I think in the 2 weeks of 2018 we will very likely be back to from where we fell."
With just shy of a 10% gain today a few more days like this and it will be back to last weeks levels.
At that point I think the new guys will start to pick up support from investors and the sp will climb.
Out with the old and in with the new.
New guys always want to get all bad, news out.
It then provides them a base from which to build, but also crow about their own success.
Great products, very niche though (Again as already stated) but certainly sound foundations.
The drop knocked me for six a bit, but akin to PMO who fell like a lead balloon 3 weeks ago, those who braved the storm, saw value where others didn't are already in excess of 50% up..
I think in the 2 weeks of 2018 we will very likely be back to from where we fell.
Re the fall in share price to below the offer price. A new CEO airs the dirty washing to establish a low baseline from which to move forward.
Read the last IDH report their new man Jaap is chopping and changing the sales and distribution system. Let's hope he gets it rolling fast their problem is a being a niche player with a narrow range of tests. Allergies are a big one for both companies so what's the problem in doing a deal? Is it personalities? David Evans is common to both companies and has considerable experiences brokering deals.
I am underwater big time being a long term holder but will be buying more at these prices. If they don't sort matters out a bidder will as a as even a 50% premium at these levels is a gift.
Yes I think you may well be right mnbv etc. I think some will say that both Omega and IDS need better strategic thinking and commercial focus and replacing CEOs may achieve this I hope. Developing diagnostic products is a painstaking and slow process by its nature but I think you can argue that Omega needs a leader with a bit more imagination to get things moving.
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