So the Trinity broker analysis quotes POC troponin testing at $350 million worldwide, Magnotech are now behind the curve given that Trinity are already in a position to state performance, which is essentially good enough. It won't matter if a Philips device is more sensitive/specific if the Trinity device is cheaper it will be the obvious choice. Even if Philips rapidly capture 50% of POC troponin testing (which seems unlikely) thats about $200 million in 2015, even 3% royalty is still 'only' $6 million for ADO.
Hopefully Philips would need us for other POC test too, but it doesn't look like the near term cash cow that many here imply. Maybe if we can multiplex with BNP it will make magnotech the dominant player.
Don't get me wrong, a deal with Philips would still be enormous for ADO given the vote of confidence it gives for Mix&Go and the support of a global player to alert everyone to its reality. I also agree that this competitor gives Philips a massive kick up the proverbial to get a move on.
As I've previously said, I really think BBI is the far, far bigger deal and with much more scope for near term income.
ADO Price at posting:
25.0¢ Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)