I assume you are referring to Aegros, the "disrupter" in the...

I assume you are referring to Aegros, the "disrupter" in the plasma space.

Just some food for thought:

1. CSL currently has in place a nine year contract (January 2018 to December 2026) for the manufacture and supply of fractionated blood plasma products in Australia, with the option to extend the contract (Source: National Fractionation Agreement for Australia)

2. As part of that contract, the Australian Red Cross Life Blood (formerly Australian Red Cross) supplies blood to CSL.

3. The majority of the plasma derived blood products used in Australia are supplied by CSL with the balance coming from the likes of Takeda, Sanofi Aventis, Pfizer, Grifols (Source: National Blood Authority Factsheet)

4. The companies list in point 3 (above) are multinationals producing at scale and subsequently profitable.

5. A problem that has plagued the industry has been the supply of the raw material - blood. Aegros may have the technology to boost the yield on fractionation but unless they can source the blood cheaply its going to come at a huge cost.

Aegros doesn't have the infrastrucuture in place (blood collection centres)

For years CSL and its competitors have been rolling out collection centres in the US like there is no tomorrow. Since their purchase of the Nabi collection centres decades ago they have now perfected the secret sauce to grow their collection centres internally as oppose to their competitors purchasing going concerns at considerable cost.

Frankly, I see Aegros as the five foot two 7th grader looking to pick a fight with four six foot three 12th graders, good luck with that.