In terms of Labcon, one frustration for BCT since last year was that their sales force is purely commodity and required a lot of training - and Labcon did not want to invest on that dast enough.
On covid, Labcon is of the view that it will remain an issue for another 18-24 months and wanted to push out BCT sales commitments out (as well as other products higher value products) and focus sales on their bread and butter.
But here is the main reason why BCT said enough- Labcon wanted their exclusivity rights extended too - something you would not care about if you thought the product was not a game changer - and that led to the end of the contract.
That's my understanding and fact is that Labcon wanted to keep them in their pocket while the waters clear..
As they lose exclusivity, BCT can work directly with some of the other major in the field - some of which I understand were planning to buy via Labcon - cutting the middle man..
Lesson for BCT is to not provide exclusivity to anyone under any terms to avoid having its sales at the mercy of another company. Hope they can do that in other fields like IVF, gene therapeutics, pharma and vaccines etc..
Labcon may come back on the picture if their ego allows so as their arrogance could make the legal case too much for them to digest.. and their clients may also pressure them there so let's see.. think is a 50/50 chance or maybe 60/40 they agree on a new agreement as Labcon can not afford to see this succeeding and realize it had it in their fingers and lost it.. the other side of their ego ..
ST it has hit sales as seen in the past few quarters but fundamentally it highlights- to me at least - the value of their tech and it seems that others are seeing that too..
(20min delay)