Appendix 4C for the period ending 31 March 2011 (ASX : ADO)
Anteo Diagnostics Limited (ASX : ADO) attaches its Appendix 4c for the quarter ending 31 March 2011.
CEO REPORT - QUARTER ENDED 31 MARCH 2011
Dear Shareholders,
I am very pleased to report that, as at the end of March 2011, your company had $6.75 million cash which, at current levels of expenditure and in the absence of revenues, would be expected to see us through until 2013. A total of $5.1 million was received through the exercise of 6.5 cent options that expired at the beginning of February. I would like to underline the fact that these options were exercised at a small premium to the prevailing market price. I believe that this is a compelling vindication of the faith that all those parties that exercised options have in the future of our company. Subsequent to the end of March a quantity of 5.5 cent options were exercised (100% of those outstanding) and our cash reserves, as of the date of this report, are $7.3 million. The quarter has seen heightened levels of engagement and collaboration across all sectors in which we are involved. Our immediate focus remains on the IVD suppliers but activities outside that area continue. Highlights of the quarter include: BEAD MANUFACTURERS Bangs Laboratories have launched ?Silica Bind-IT? a second product that is activated using Mix&Go. This product has, at its core, a glass bead and glass (silica) beads are Bangs best selling product. The decision to launch this product came after exhaustive follow-up with customers who were using ProMag Bind-IT to determine their level of satisfaction with the product and the benefits that flowed from its use. Bangs also undertook extensive real-time stability testing with the product to convince themselves that it would not deteriorate with time. They clearly did not want to jeopardise the market acceptance of their flagship product. Anteo Diagnostics Limited ABN 78 090 487 273 Unit 4, 26 Brandl Street, Eight Mile Plains Qld 4113 Phone 07 3219 0085 Fax 07 3219 0553 Email [email protected] Web www.anteodx.com Another major bead manufacturer embarked on a collaborative project with us to determine whether we could simplify and accelerate their bead manufacturing process. We have demonstrated that, through the use of Mix&Go?, both Cost of Goods and performance benefits flow. Analysis of the economic impact is expected to lead to commercial negotiations. A European bead manufacturer has indicated an interest in developing a Mix&Go? activated bead for use in the separations market. This company has just been acquired by a global organisation and agreement with the new owners is now being sought to proceed with the project. IN VITRO DIAGNOSTIC SUPPLIERS A project is well advanced with a major global IVD company that has, as its objective, development of an ultrasensitive blood test that delivers consistent results from multiple batches of Mix&Go?. Achievement of this objective is expected to see: this assay replace the existing assay for this test in the market, a Supply Agreement signed for the use of Mix&Go? with this company, and the use of Mix&Go? to be migrated broadly across this company?s test menu. We expect our inputs to be complete by early May and these results will be submitted to the IVD company?s executive committee for commercial consideration. Another Top 10 Global IVD company approached us with a desire to enter into a collaborative project. The notion of Anteo as a potential solution to a particular technical challenge was planted by another non-competing global healthcare entity with whom we are already in collaboration. We were asked whether we were prepared to allow some of the confidential data that had been generated to be passed on to the interested party and, of course, we agreed. Work on the project that has been jointly conceived is now in train. Work has continued with another major participant in this field and activity levels have risen in response to encouraging results. Three objectives are being pursued with this group: Improving the sensitivity of tests for certain, life threatening, clinical disorders Reducing waste and improving raw material usage Introducing process efficiencies in the manufacture of their commercial test kits POINT OF CARE MANUFACTURERS A global healthcare company is developing a hand-held instrument for use in Point of Care diagnostics. The device, with a limited menu, is slated for launch in mid-2012. The decision to use Mix&Go? is yet to be made but, given the existing data, we are optimistic that there will be a positive outcome for Anteo. Anteo Diagnostics Limited ABN 78 090 487 273 Unit 4, 26 Brandl Street, Eight Mile Plains Qld 4113 Phone 07 3219 0085 Fax 07 3219 0553 Email [email protected] Web www.anteodx.com CORPORATE Lara Iacusso resigned from the Board in February. Lara joined the Board in 2008 and throughout her tenure has provided significant challenge to management thinking that has led to improved operational decisions being made. Her valuable input will be missed but we understand that the ever increasing demands of her existing executive roles left her with little choice. The Board and all in the company would like to thank her for her valuable contribution. As has previously been announced the Board has undertaken a review of its composition and structure with a view to ensuring it is able to provide the best possible direction through what are envisaged to be extremely exciting times for the company. The market and shareholders will be kept informed of developments in this area. Dr Tina Baumgartner, the Principal of Accella Group, has been appointed as a US based consultant to assist with US and European Business Development. Tina received a PhD from Universit?t Konstanz in Germany and an MBA from MIT in the US. She has over 11 years experience in business development, corporate strategy, market research, and marketing in the life sciences and biotechnology space in the US. Tina will focus predominantly on companies and segments that are currently untouched. As a result we expect that our list of collaborators will continue to grow. SUMMARY In summary, the quarter has provided many sound reasons for continued optimism for our prospects. We are very conscious of the high expectations you have for your company and remain confident that we can deliver. Dr Geoff Cumming CEO Anteo Diagnostics Limited
ADO Price at posting:
7.0¢ Sentiment: LT Buy Disclosure: Held
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