I can understand your frustration and it would be shared by many. While disappointed In what happened with Immunotherapies (it had great potential) in hindsight it was never something we should have taken on. It was a money pit that we simply could not fund alone and if the assets were that good it could have been partnered. The fact that didn’t happen could be mismanagement or simply the quality of the IP.
What has happened has happened and going into administration means shareholders are unlikely to ever see any return from it. Remember that Admedus let it go into administration because we refused to continue to fund it and thank god we did otherwise the whole company would have gone down with it.
The value (funds we received) for CardioCel and VascuCel is reasonable (IMO considering our position) and really not comparable when talking about the 3D valve and TAVR program. The patches were part of an significantly smaller market (I think around 800 million from memory and that’s for all types of patches) where as the valve could be part of a 5 to 12 billion market (TAVR) and that does not include SAVR or TMVR.
What is lost on a lot of investors is the inherent value of our IP and not just the products it produces. In my opinion (and I have always believed this) our IP is by far our most valuable asset and it alone could be worth more than the 200 + million you reference.
Of course it remains to be seen if AHZ can partner with a big player in the TAVR space but rest assured our valve is real, it’s unique features are proven, it has been implanted and explanted and it works. The results to-date in the sheep study have been outstanding. The advisory board are very real surgeons with very real connections and experience with the biggest med tech companies in the world. Abbott and Medtronic to name a couple.
Michael Oswell (ex Medtronic) is also real and is leading our TAVR development.
So yes we have a way to go but the plan over the last 2 to 3 years has always been to divest all non core businesses and focus on TAVR and other Adapt based products. We now have achieved that, we have a TAVR prototype, we have exposure, we have focus and we have some capital. It may seem like a new beginning and it sort of is but it really is just a long term plan actually playing out as planned and articulated.
I have been a long term advocate of this business and have been absolutely wrong many many times. It has been a very long painful journey filled with many difficult lessons. So I completely understand the skepticism and it is completely warranted.
Admedus still is and always has been a high risk stock that still has to deliver, manage its capital prudently, partner wisely and start providing a long overdue return on investment to its long suffering shareholders. Those that have continued to hold and still believe or do not want to yet crystallise their loss.
Hopefully those holders that wanted to sell and move on have done so (after being denied that choice through suspension although that suspension probably saved the company) and those that still believe can wait and see how this plays out. I truly feel for everyone that has lost money (and more) to date in Admedus and I cast no judgement on anyone that still wants to sell or criticise the company and management.
All I can say is that I personally still believe in the value of the IP, the products we have, the potential to partner and the possibility of a decent outcome. However, that all hinges on successful execution and time will tell if that happens.
As always DYOR, this is not advice and understand that this is a very risky stock and do not invest more than you are prepared to lose if you are looking to invest new funds.
AHZ Price at posting:
6.4¢ Sentiment: Buy Disclosure: Held
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