ADO 0.00% 2.1¢ anteotech ltd

Ann: Up to $1.4m in Qld Grant for COVID-19 test development, page-75

ANNOUNCEMENT SPONSORED BY PLUS500
ANNOUNCEMENT SPONSORED BY PLUS500
CFD TRADING PLATFORM
CFD Service. Your Capital is at risk
CFD TRADING PLATFORM CFD Service. Your Capital is at risk
ANNOUNCEMENT SPONSORED BY PLUS500
CFD TRADING PLATFORM CFD Service. Your Capital is at risk
  1. 4,995 Posts.
    lightbulb Created with Sketch. 2157
    I thought it did too, but I happened to catch @ArtVandelay comment before it got moderated, so I'll try put some numbers against this, to explain that, just because we license out the test, it doesn't mean we compete against ourselves and that we would decrease our profitability.

    Let's say, hypothetically (since I don't know who is capable of what) ADO has only found 10 companies (suitable for whatever reasons ie costs, terms, conditions etc) worldwide to manufacture our test, each company only has capacity for 10m tests per year, so in total, we can produce 100m tests per year (and all sold out due to pre-agreements/off take contracts with companies/governments), and say we make $5 per test, that is $500m profit.

    If we don't license, that's the most we can make due to manufacturing capacity being capped, unless we sell the tests for more, in which you could price yourself out of the equation as well. And obviously 100m tests are not going to satisfy the world's demand for ART.

    So how else can we maximise the ART IP? Right, by licensing out to other companies that has more manufacturing capacity, maybe we find another 2 companies that can produce 250m tests each using their existing readers and cassettes, and since its royalty based, we may only make $1 per test. But overall, with an additional 500m tests at $1 ea, that is a further $500m profit, just the same as amount as what we could produce ourselves.
    Then getting to your point of competing against our own product, well... What if our ART is cheap enough for frequent use around the world? Once a day or once a week? With or without symptoms? Then the world might need 2-3 billions (just an example) tests a year, so whatever is produced using our IP (whether it's in-house, contract or licensed) gets sold, so there may not be competition.

    Whilst this is completely discounting what @PeterFred said, in which I completely agree with, that if we are in a position to help fight against Covid, I think I'd choose credibility, reputation and still good enough profits to make us rich, than being greedy and withhold IP for further profits. Because the sooner we end this battle with Covid, the sooner we can all return to "normal". What's the point of getting crazy rich if we can't even spend it the way we want ie travelling etc.
 
watchlist Created with Sketch. Add ADO (ASX) to my watchlist
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.