ADO - Back to the future, page-5

Seriously people you really should ask ADO management for an honest answer as to where they think this platform technology sits in the 'margin chain' and 'pecking order'.

Further you should ask management as to the relevant economics of the 'beads' companies that the Mix'n'Go/Nanoglue tech is relevant to - this is the focus of their business model now that DiaSource is gone.

I will try to make it simple and draw an analogy to the car industry:

(1) you have car manufacturer/brands that make and sell branded products (eg. Audi, BMW, GM, Tesla etc..) - these guys have deep pockets and have fully integrated R&D, manufacturing and distribution alongside trusted brands. These car manufacturers do the assembly and testing using a lot of product from (2) below...the manufacturers sell wholesale (through dealer networks) and in some cases direct to retail also
(2) These are the component suppliers to the car manufacturer/brands that supply a lot of the product (some proprietary, some not) - see attached file list on page 4.
(3) finally you have the component suppliers whose business is to supply product to (2) above.

ADO and its NanoGlue tech platform is fairly and squarely in category (3).

Companies down in the level (3) category are usually kept private because they never really deserve to be publicly listed as it is very difficult for them to effectively insert themselves in the margin chain in a meaningful manner and if they do they are exposed to the crumbs and tend to get screwed by (1) and (2) above when they themselves face increased competition and cost pressures.

Healthcare Dx in regulated markets is not that different to the car industry as per the dynamics explained above.

Do yourself a huge favor and just ask the management of ADO for an honest answer as to where they think this platform technology sits in the 'margin chain' and 'pecking order'.

I reckon that then you all can sleep better at night without any false hope.

Caveat emptor here everyone

ATB