I received some communication some time ago in respect of...

I received some communication some time ago in respect of queries around the Hologic deal and FFN product. Here are the responses for interpretation:

Response 1 to a query I had:
This has really laid the foundations for long term revenue from conducting the next phases of the product development program, long term manufacturing contracts, new tests to add menu items (tests) to the reader that Hologic place in customer sites, and expansion of the IP agreement to provide an exclusive licence for the addition indications covered by the new menu items. Very frustrating that the market seems to have missed the significance of this. I guess we just have to keep working at communicating it better.

Response 2 to a query I had:

In terms of margins on sales, I believe that Lumos will not be paid any kind of royalty but will make money from a manufacturing margin for supplying the finished product that is sold. Worth noting, when a device is approved, it includes the place of manufacture so there is a real switching barrier which is why these medical device manufacturing contracts are so valuable - effectively annuity income.

I would guess (and this is a guess) that would be around 15-20% of the wholesale price which is typically 60% of the retail price. So if you worked off 7.5%-10% of sales, you should be in the ballpark. But this is a guess (educated guess but still a guess).I think people need to understand that the device for Hologic is built on the foundation of the Leelu reader and is expanded upon existing technology Hologic already use. They will likely incorporate further tests into the second generation platform for Hologic to use, hence the amount in the initial IP payment.

I would suggest that ongoing annuities from the platform will be generated and further development work obtains when new tests are established through the Leelu reader.

Febridx can be used through the Leelu reader also.