interesting isn't it

I don't understand how the market is missing the point of where GTG are heading. Firstly we get todays good news about the settlement achieved:

"Hologic was a counterparty to GTG’s recently announced patent infringement suit filed in the District Court of Colorado (ASX announcement: 26 May 2011). Hologic is now the second counterparty in this suit to settle. “With the settlement of both Navigenics, Inc. (ASX announcement: 28 June 2011) and now Hologic, Inc., the Company is pleased with the tempo and progress of this third assertion suit,” said Dr. Paul MacLeman, GTG’s Chief Executive Officer."

To put this into perspective and as our Chairman put it in the Annual report "With an “ever-greening” of the non-coding patent estate to 2022, the Company anticipates continued strong cash flows from the licensing programs in
coming years", so let's break that down even further.

We earnt around $13.7m in licensing revenues last FY which saw us in the black, we also hold around $14.8m in cash. But the one thing to strike me is that there's a lot more to come, from the report the company states:


"Based on the Company’s assessment of the number remaining targets, assertion of its IP rights contained within its key patents could increase the total revenues received from the program over the coming years to more than $100 million"


So then we take this away from that $100m:


"To date, the licensing program has resulted in the granting of more than 60 commercial and research licenses to various multi-nationals, biotechnology companies, genetic service providers and research institutes and has generated in excess of $65 million in valuable non-dilutive funding for the Company"


....... and that leads me to believe that we have another $35m odd to come into the company coffers, not a bad result to keep us very much cash flow positive. Especially when we still have Agilent Technologies Inc., Bristol-Myers Squibb Company, Eurofins STA Laboratories Inc., GlaxoSmithKline LLC, Merial LLC, GeneSeek Inc., Pfizer Inc.
and 454 Life Sciences Corporation to go in this third suit filed.

So I'm a little miffed about the muted response considering we are now well underway with the BREVAGen launch and tackling the potential $620m per annum addressable market. We've already reached 800 phsicians and signed the first Preferred Provider Organisation. I haven't even gone into the rest of the pipeline like RareCellect or even the out-licensing opportunities in Europe that are being chased.


All just my thoughts, please chack everything.