Media Updates, page-617

Buying FNP will not be the solution to competition risk. Their management could just start again with their current and planned range of products. After all in a hostile takeover one can't dictate what the management can or can not do after takeover. At best it will delay the threat.

From my analysis FNP have a clever management but their strategy so far has been to appeal to niche markets. They think small and don't have products that appeal to the mass market. Clearly they failed to anticipate how A2M could grow so rapidly by competing in the mass market positioning itself as a premium product supplier. They also seem to have supply issues for the availability of A2 strain.

Ultimately one day we will have competition as copycats are sure to come in. Hopefully by then A2M will have built on its first mover advantage expanding in a number of markets with a wider range of products and growing its A2 herds to ensure larger supply volumes.