Hi Cashman, I know you were only using an example... but...

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quaywest

37 Posts.

28/08/14

13:49

Post #: 13887779
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Originally posted by cashman2284 ↑

Im interested in a couple of things he has said as per the questions I asked him to answer but he didnt reply unless it was the one that was censored.

Im a bit intrigued into the whole 'why companies havent taken up Anteo's product piece', particularly surrounding the amount Anteo are wanting to charge prospective clients. It is a big claim to make without having some sort of basis to go on which makes me wonder is this guy an insider from one of the companies we have worked with and has first hand knowledge?

His / her company valuation methology was a bit skewiff when you are trying to value a speculative stock which makes me think he may know something about M&G or dealings with Anteo but added the rest in? Im not sure, but anyone who dismisses these types without at least thinking about what has been written could be setting themselves up for failure. Maybe not with Anteo if you have done your research but others?

My understanding is mix and go isnt overly expensive to manufacture and this can be reasonably confirmed by looking at the financials. What does have me thinking though is the different variations of mix and go and how many of those variations BBI or other prospective clients would have to use and how difficult it would be to put into their current manufacturing process. Stage 3 seems to be taking longer than the companies inital thoughts so it could be a possibility.

I always thought that when Anteo were dealing or negotiating with a prospective client they would looks at the price the company could currently get for a product, the costs of good sold, the reduction in COGS that mix and go brought to the table (whether thats reduction in antibody etc) and then also look at the increased sensitivity as an added benefit and work out a royalty which is somewhere inbetween the COGS and the saving mix and go could bring to the table.

For example;

Company ABC sells a product for 10cents
The cost of goods sold is 3 cents
So the Gross Profit is 70% or 7 cents
Mix and Go reduces COGS to 2 cents so the Gross Profit is 80% or 8 cents
If we charged a 3-5% royalty we would get .003 -.05cent per test.

I appreciate that their are 1000's of products and the efficiency of M&G would vary per product but surely they could work out as a collective what M&G would save them on an annual basis and come in somewhere inbetween with perhaps a higher royalty for jointly developed products or products that were not able to have been generated in the past without the M&G technology?

I dont work in an area where royalties are negotiated so I am interested to hear whether this is something anyone else knows much about?

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Hi Cashman,

I know you were only using an example... but something costing 3c and selling for 10c is a 233% and the gain if the cost goes down to 2c becomes a 400% gain.

Cheers

ADO Price at posting: 15.0¢ Sentiment: Buy Disclosure: Held
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