HGR unknown

back of the envelope valuation., page-6

  1. 3,715 Posts.
    The largest part of the US Workplace testing market is based around a reduction in insurance costs of 7.5% for companies that do it.

    This is based around state level legislation, and for the most part this currently stipulates urine based testing for most states.

    This means that in the short term, we can only tap into a smaller segment of the 1.3Billion market.

    However, for the longer term when Saliva testing is shown to be acurate and it is allowed by the states, I can see most workplace testing moving to saliva based testing for the obvious reasons of ease of monitoring and use.

    Sun will be in a great position when all of this lines up, and the other markets will allow them to tool up their manufacturing side in the short to medium term to be ready when the workplace testing market explodes within a year or two for saliva based testing.
 
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