Sonic may well have the contract (I thougth all pathology...

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smokeyd

213 Posts.

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01/12/21

09:34

Post #: 57984637
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Originally posted by triage: ↑

smokeyd - also I am fairly sure that Sonic has either "a" contract or "the" contract for the logistics and testing of the FIT test in Australia. They may be on a good wicket with the FIT contracts so they may see ColoSTAT as a threat rather than as an opportunity.

I have to say I find the market response so far to the CE Mark news to be surprisingly tepid. I understand that the CE Mark approval goes to safety and fitness for purpose rather than how ColoSTAT actually performs. Notwithstanding that, it surely is a huge milestone for the product and the company.

I also have trouble reconciling the predicted income stream for FY23 and FY24 assumed by say, MST Assess in the report they put out the other week (which is on the Rhythm website) ($5m in FY23 and $17m in FY24) and the numbers being used by Rhythm eg an addressable market in Europe alone of US$12b. Even assuming that only European countries take up ColoSTAT that suggests that ColoSTAT will only have tapped into about 0.1% of the market in the next 30 months or so. I am clearly missing something.

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Sonic may well have the contract (I thougth all pathology providers could do it), but you suspect in a few years that the number of FIT tests will be approximating zero if the RHY test is superior and easier. Its not a threat, as FIT is the one threatened.
You do realise that the $12b or total market opportunity refers to the value of tests. Only some of that will flow through to RHY. That amount is the biggest drivers of the various DCFs floating around

RHY Price at posting: $1.84 Sentiment: Hold Disclosure: Held
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0 Great analysis

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