I was thinking the same thing Tricop. As Vin's report card suggests..Their track record is pathetic.
REPORT CARD - October 2007-March 2009
Between October 2007 and February 2008, SBN’s structure, business model and business plan were refined and adjusted.
A Chief Operating Officer (Jack Kerins) and a new Director (Jim Hallam) were appointed in late Oct 2007.
In December 2007, the company’s name was changed (from Harrington Group to Sunbiomedical Pty Ltd) and a major JV with SiYi was signed off.
In January 2008, the Oraline iv FDA 510k clearance application was rejected – thereby ending the Company’s prior key focus on this project and, in February, the Melbourne office was dismantled with the bulk of financial resources being transferred to the SBL operations in USA.
The major existing market opportunity was the US forensics market for Oraline, but a large number of new projects were firmed up and/or commenced in this 6 months period – including SiYi, Bioscreens, Visualine, Oraline 8 and the Medinat agreement in Russia. As well, there was a continuing expectation that Oraline iv sales opportunities would open up in Mexico.
In the following 6 months (March to August 2008), further initiatives were added - including the CMM distribution agreement, Probeline and Latin American initiatives.
How does the report card look on these various projects – in terms of outcomes and delivery on time and budget?
The answer is pretty obvious – with the reasons for it summarised in the following paragraphs.
PROJECT 1.
USA Oraline distribution
STRATEGY
Initiated a new distribution model in the US and expanded distribution network and market coverage
PROGRESS/OUTCOMES
30 Apr Update – New distributors added in Mar Qtr
30 Jul Update – new distributors added in June
28 Oct Update – new distributors added in Sept Qtr
COMMENT ON OUTCOMES:
40% INCREASE IN SALES FROM CALENDAR 2007 TO 2008 (UP FROM $629,000 TO $878,000) BUT NOT SUFFICIENT TO COVER JK SALARY AND COSTS & ADDITIONAL SALES STAFF
PROJECT 2
STRATEGY
SiYi JV Announcement 12 Dec 07 of Cooperation Agreement with Shanghai SiYi Biotechnology (3 stage partnership leading to total world production of Oraline in China)
PROGRESS/OUTCOMES
30 Apr 2008 Update – MPS requests refinement of detection ranges – with field testing delayed to November 2008
30 Jul Update – Field trials delayed to early 2009
8 Oct Update – Quality accreditation approved by MPS; field trials still to commence early 2009;
19 Dec Update – SiYi to commence final submission in Mar 2009 with completion by Jul 2009; commencement of Ketamine device on behalf of SiYi
30 Jan 2009 Update – field trial delayed to March 2009 with reduced numbers – following QC problem; new problem of storage identified; manufacture of 'improved version' of O4 required (WHY?)
13 Mar 2009 - announcement re return from SiYi of Oraline units and uncertainty re completion of MPS field trials
COMMENT ON OUTCOMES:
UNEXPLAINED STUFF-UP OF SIYI/MPS RELATIONSHIP = MAJOR LIFE THREATENING CRISIS
(POSSIBLY DUE TO POOR MANAGEMENT OF JV – INSENSITIVITY OR LOSS OF CREDIBILITY DUE TO QC DEBACLE IN DEC 2008)
PROJECT 3:
Oraline 8 Commercialisation
STRATEGY
30 Apr Update – Oraline 8 prototypes have been developed for lab testing – based on surveys of distributors – to be launched in Sept 2008
PROGRESS/OUTCOMES
26 June Rights Issue Prospectus – launch delayed to Oct 2008
28 Oct Update – launch delayed to November 2008 (Medica);
21 Nov Medica Conference – No longer a ‘launch’ at Medica – only a ‘showcasing’
19 Dec Update – further delay to Apr 2009 with delivery of plastic housing
COMMENT ON OUTCOMES:
THREE DELAYS SO FAR. NOW 7 MONTHS LATE – with no launch – only ‘showcasing’ (Nov 2008) and ‘delivery’ (Apr 2009)
PROJECT 4:
Bioscreens split cup JV
STRATEGY
13 Feb – Announcement of JV with Bioscreens for split cup (with initial sales of $500,000 in calendar 2008);
OUTCOMES/PROGRESS
28 Feb Update – Bioscreens device to be launched in Qtr ending September 2008
30 Jul Update – launch delayed to December 2008
28 Oct Update – launch now delayed to early 2009;
19 Dec Update – delayed again to March 2009
COMMENT ON OUTCOMES:
THREE DELAYS SO FAR. NOW 7 MONTHS LATE + MISSED REVENUE OF $500,000 IN 2008
PROJECT 5: Visualine relaunch
STRATEGY
28 Feb Update – Visualine to be re-launched in Qtr ending June 2008