In my opinion, this was a neutral to negative announcement in the short term, with the positive distribution agreement being negated by the inconclusive results of the saliva test using stored spit samples. 2 things I learned from today:
1) It takes a lot longer then I had anticipated to sign a distribution agreement due to potential distributors conducting their own validation studies.
Other distribution agreements will follow very shortly as there would have been multiple negotiations (similar to the Biomed one) playing out since April. This agreement bodes well for my 'judgement day' timeline which is Christmas.
2) Saliva is a harder nut to crack than we thought.
The team thought they could get away with using stored samples in the UK but this has proved to not be the case, hence why they are doing a live patient clinical study in India. From what I have read, opinions are mixed of whether an accurate saliva based rapid test is possible, given the level of interference in the mouth.
I applaud Derek and the team for what they have achieved so far but I think they made a mistake in announcing a saliva test, very soon after the launch of the nasal test. Imagine launching a product only to tell the market that a better version is on the way!! This is the first wrong step Derek has taken so we should'nt too harsh.
I still have confidence in the outlook for the business but just need more patience for the process to play out.
Peekay
ADO Price at posting:
23.3¢ Sentiment: Buy Disclosure: Held
