I'm seeing this as a company that is transitioning from a biomed drug discoverer, to a medi-tech equipment invention company (if that makes sense!).
Sure the reward is less - no lifechanging discoveries - but the risk drops to ZERO - as the companies who want LDX to design and produce their testing kits pay upfront, and then annual royalties.
I love this scenario, absolutely love it.
Imagine LDX designing and manufacturing 4 new tests per year, all based on their exclusive equipment.
$5,000,000 per test (as per hologic) plus annual royalties.
Look, this is very simplistic, but it's a very very good business plan.
Things like FebriDx then become the cherry on top.
This transition period will be the most challenging, but it's pretty sound IMHO
LDX Price at posting:
4.4¢ Sentiment: Buy Disclosure: Held
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