The key points are small competitors can't really hurt A2M due to their lack of economies of scale. And the big players can't be exclusive A2 as they are still selling mainly their A1 contaminated milk as their main product line. Hard to market against their own products. It would only help A2M. They would have to go hard at it for A2 exclusive operation, but the supply will take a while to build up to match their existing A1/A2 product line.
Geoff Babidge has been quite clear that they expect competitors (especially at the last AGM). He doesn't use any more words than he needs to. So I suspect they must know something through industry whispers. They also stated unequivocally they will defend their patents, IP and trademarks vigorously. I think this was not just aimed at Lion, but the others they think are getting ready to close to commercial launch.
Yes, there could be an initial market reaction, if we get a serious competitor, but it will be an admission from a competitor that the A1 protein issue is real. That's as good marketing as any large scale clinical trial. That admission will bring on board many more scientists and nutritionists than A2M can do on their own.
By that stage A2M will have numerous A2 products in the market and it will only help drive that uptake. I'm sure A2M management have a full scale war plan they have been refining for the last 2-3 years for when (not if) various grades of competitors come out of the woodwork.
A2M Price at posting:
$8.16 Sentiment: Buy Disclosure: Held
(20min delay)