low volume games, page-43

Cashman - good post

For a minute forget about POC and all IVD companies and just look at MixnGo as a coating that can make beads superior to the market leading product.

I have written in the past about the intertwined relationships between some of these companies and how competitive they are.

* The bead market is in excess of $1B pa


* Life Technolgies is the leading supplier of beads to the IVD market through their company Dynal based in Norway

* Life Technologies supply over 50% of the Global IVD market and the majority of the Top 10 IVD companies

* Life Technologies formerly Invitrogen purchased Dynal Biotech in 2005 for $391m USD

Invitrogen Completes Acquisition of Dynal

* 14th July 2010 - ADO sign licensing agreement with Merck - announcement clearly states that there will be NO immediate revenues - Why?

Here is my speculation -

* ADO show Life Tech what Mixngo can do for their beads

* Life Tech like what they see - My speculation is that Life Technologies were one of the "Perilously Close" companies and they were actually so keen they wanted a piece of the company. The offer was enough for ADO to be confident that they had something special

* ADO signs a deal with Merck who supplies beads to Beckman Coulter the only Top 10 player I know who uses Merck beads - Why - Mixngo and Merck Beads make a cheap bead better than the market leading Dynal beads

* With the confidence that ADO have something, the massive option conversion at 6.5 cents funds the company with enough money to give them time to approach and give the IVD companies themselves the chance to get to know what Mixngo is all about and improve their strategic position in this game of chess.

* ADO then announce that they have shipped 1 litre of Mixngo to a Major Global IVD player for full scale commercial testing -
* As well as Beckman who uses Merck beads , ADO also gets MixnGO direct to some of these large IVD companies that are currently customers of Life Tech - These IVD companies obviously have supply contracts with Life Tech that could expire at any time and I am sure Life Tech would not want these IVD companies to change over to Merck so they can use Mixngo on a cheaper bead that gets a better result than the current gold standard from Life Tech??

* Life Tech's sales from this market are in excess of $500m

There is a much bigger game at play here and I know if I was Life Tech there was a chance of losing an IVD customer to another bead supplier who is using MixnGO and that customer is worth tens of millions of $$ per year then things would definately get interesting

You want to know what a snowball is - Beckman Coulter starts using Merck beads with Mixngo and then a customer or two from Life tech's contracts expire - Choice is for Life tech to pay up or lose customers :)

This post doesnt even take into account current contracts or the blatantly obvious links that we are working and getting paid work from Philips on a potential POC device that would be wortj tens of millions per year in royalties for the next 15 years