Arthro Kinetics Share Discussion Threads

[jonwig] 29/8/2006 08:39

Well, filling my meagre order took an age with TDW.
A very good post here -



He also suggests the 150k sell might have been a mistake, with a similar ticker share priced around 30p. Stranger things have happened!!

[leopold555] 27/8/2006 07:44

Could not sleep in this morning so went into research mode...

Growth Indicators...


"During the first quarter this year, we were very concerned about our resources being overstretched. The results were the opposite. Our company grew 100% over 2005. After that IPO, within the last two or three months, we've been able to recognize significant milestones in signing agreements to generate revenues over the next two or three years in various parts of the business, including distribution agreements in the patient markets in Europe, on top of that getting regulatory processes and the first approvals for a part of the product range in the U.S. "

There has been no reaction to the JV announced on 17th July 2006

Arthro Kinetics in Australian JV

Arthro Kinetics plc, an orthopaedics company dedicated to regenerating joint mobility and spinal disc function, said it has entered into a strategic alliance with Australian Biotechnologies Pty Ltd in Sydney to manufacture and distribute the company's advanced bio-implant products in Australia and New Zealand.

It said a secondary agreement has also been signed, that allows the company to produce the implants at the Australian Biotechnologies' facility for export into South East Asian countries, which will enable the company to offer a cost competitive solution for this rapidly expanding region.

During the initial 3 year term of the agreement, Arthro Kinetics expects this collaboration to generate 3 mln eur in revenues for the initial CaReS product alone. The companies also plan to collaborate on all future biological implants developed by Arthro Kinetics

Leo

[kamitora] 26/8/2006 20:24

This article from tomorrow's Sunday Business newspaper isn't about Arthro Kinetics, but it may be of general interest:

[123adv] 25/8/2006 19:43

well done to those who got in - i did say peep were buying in

[leopold555] 25/8/2006 16:22

That 5000 was a toe dipping :-) may buy some more Tuesday after some more research on the company but I like what I see so far!

Leo

[leopold555] 25/8/2006 16:09

Far too cheap and the seller may simply be someone who needed a lot of money fast ;-/

[adgd2] 25/8/2006 14:33

Lots of small buys going through at 58. Bodes well for when the stock overhang is cleared!

[jonwig] 25/8/2006 12:55

Best of luck - I may follow after the holiday. Need to do a bit more research.

[leopold555] 25/8/2006 12:40

Just been filled

[leopold555] 25/8/2006 12:31

Just ordered 5000

Leo

[leopold555] 25/8/2006 10:49

Very illiquid stock I could only get £500 online :-( still watching for now

Leo

[jonwig] 25/8/2006 10:47

The year end is 31 Dec, so they will be in a close period now - hence no director dealing allowed.
I'd expect the results for the half year sometime late next month or early October.

The two big deals yesterday were X trades, and may well have been rebalancing between MMs.

[leopold555] 25/8/2006 10:36

Getting interested :-)

Leo

[seoultrade] 24/8/2006 12:58

A couple of large trades this morning. If the 50% drop the other day isn't justified perhaps we might see some director buying soon?

[jonwig] 23/8/2006 11:27

Edited transcript of the interview on WallStreetReporter:

WSR: Give us a brief overview of the company.

AKI: We started as Ars Arthro in 1999, focusing on biological, cellular, and acellular regeneration. We grew quickly, bringing the first products into human clinical trial use in October of 2002. In the beginning of 2004, we started marketing a product called CaReS, an autologous cellular matrix product for focal cartilage defects of the knee. Following that, we joined forces with Endospine Kinetics, an innovative start-up company in the U.K., which focused on minimally-invasive access systems and new techniques for spinal surgery. The vision behind that was to combine innovative, regenerative technologies with minimally-invasive access systems. With that background, we took the first step with the public listing and then positioned ourselves to bring these technologies not only together but also to internationalize the operations, which have been focused in the German-speaking market.

WSR: Give us some insight into the overall size of the market and some of the drivers behind this space.

AKI: These were previously traditional markets – in other words, where symptoms were addressed by either symptomatic pain management therapy or joint replacement products. It's been only ten years since the first biological product has been used in the knee joint – it's a new and developing market. With the technology we have, we are confident we can make joint resurfacing a realistic option and an additional treatment alternative for the orthopedic surgeon, which will open up at least 50% of the existing knee replacement market, or U.S.$3 billion to U.S.$4 billion worldwide.

WSR: Talk about the company's products, services, and technologies, as well as available market applications.

AKI: On the knee side, we would be talking about a real total option -- various cartilage replacement products besides the first product we have on the market. There will be acellular products coming out in the European market by the end of this year and a further complete resurfacing product is planned here in Europe for the beginning of 2007. On top of that, there is a meniscus project in development, which should go into human trials by the end of next year, as well as a ligament project. We believe these are required to meet the vision we have; when we go to the spinal side, we can now use that access system to put in biological nucleus regeneration, which will be a cascade of four to five different products, depending on the degree of disc degeneration -- human trials are only two years away.

WSR: What is unique about Arthro Kinetics that sets it apart from its competitors?

AKI: There has often been a misconception of regenerative technologies, particularly as they have existed up until now, not being economically viable. We believe we have addressed that issue with this matrix technology. This matrix is the core technology -- we can use that to embed cells or modify the matrix itself for the various indications and usages we are addressing. With that same advantage on the cellular side, it makes the process only ten days at the present time -- we can cut it down to a week. In addition, having the matrix as a core technology allows us internationally to decentralize the seeding part of the process, to use supply and license agreements and joint venture partners to go after the large emerging markets.

WSR: Tell us how the company is competing at present in terms of present technologies and products.

AKI: The most important trend is always commercial trend; the fact that there have always been significant biological products, which have now become really blockbuster products, especially on the BMP side, that has been a successful product, despite the long years and significant investments involved in those kinds of projects. That will pave the way for other biological and cellular products and other regenerative medicine products to be as successful as their predecessors. The second major trend is also a change in the mindset of the surgeons, because we are developing technologies that make the application of these products, especially in the cellular area, easier for the surgeon to apply, with very short operative times, often on an outpatient basis.

WSR: How is the company positioned to capitalize on those trends?

AKI: Having this matrix technology which makes specialty cellular therapy an implant that can be shaped and sized easily intraoperatively; it can be adapted to meet the different indications and applications required such as cartilage, meniscus, and ligaments, as well as disc degeneration. It's the first time that broad an application has been available in this form.

WSR: What are some of the recent highlights and milestones the company has achieved?

AKI: During the first quarter this year, we were very concerned about our resources being overstretched. The results were the opposite. Our company grew 100% over 2005. After that IPO, within the last two or three months, we've been able to recognize significant milestones in signing agreements to generate revenues over the next two or three years in various parts of the business, including distribution agreements in the patient markets in Europe, on top of that getting regulatory processes and the first approvals for a part of the product range in the U.S.

WSR: Give us some insight into the key goals and strategies necessary for the company to ensure success.

AKI: Getting experienced senior people into the various geographic locations in Asia, U.S. and Europe was very successfully started; we need to put additional resources in place in the next few months. We need to generate significant revenue growth and realize the potential we have in front of us with the technology at our disposal.

WSR: When we talk about the company and its market valuation on the AIM, are there any peers we should look to in understanding and reconciling market valuation?

AKI: When we look at some of the analyst reports, obviously, the peer group evaluation that they use, mainly in the orthopedic space, classical orthopedic companies, but also in the biologics and biomaterials area, those we believe would be companies that would be comparable.

WSR: Give us some insight into any underlying strategies for existing partners or future alliances.

AKI: On the R&D side, we look to keep good alliances, particularly on the university level, to see new development technologies coming ahead that might augment what we are doing, and have in terms of our technology portfolio and add to that wherever possible. In addition, on the distribution side, strategic alliances can be important in the major markets, to get excellent market coverage and quick growth into the market with the innovative technologies we are offering. That can lead to further opportunities in terms of M&A options which can come out of those specific alliances on the distribution and marketing side.

WSR: In conclusion, what are the most compelling reasons one would invest in Arthro Kinetics?

AKI: We can offer a real transformational technology, providing a whole new option of care in-between conservative pain management and joint replacement, both which will still have a place going forward, but in-between that, a regenerative option that can be administered in a minimally-invasive fashion. This would be provide a significant option to the therapies that are out there. We are putting the infrastructure and the people in place that are experienced and have a track record to show we can realize these growth potentials with this combination of technologies.

[c0nn0r] 23/8/2006 09:21

jonwig

As you say only 150k. Therefore recent buying should have cleared most of this.
The selling price fo me is the issue - why so low? A stressed seller?

The hope is that the mm have pushed this way too low - and it will rebound.
The downside is that the seller may have more to off-load?

Curious.

Same thing happened at KSI where seller still persists tho'.

[jonwig] 23/8/2006 09:13

C0nn0r - it's rubbish, anyway.
It only took a 150k sell to do the damage, so how big is 'big time' buying?

[c0nn0r] 23/8/2006 09:11

123adv

Is that hope - or do you really know!?

[123adv] 23/8/2006 09:08

this will bounce big time - peep in the know have been buying big time

[rbonnier] 22/8/2006 10:28

Yes thats the problem and the reason I havnt had a dabble...is the seller still there?

[still waiting] 22/8/2006 10:20

Tempted to place a cheaky order in at 35p, to see if the seller is still there.

[learntlesson] 22/8/2006 09:54

Kamitora - good post, I agree with you on AKI - don't think I can afford to make a mistake on it at the moment so will leave it for now. You perhaps would like OPTS?

[kamitora] 22/8/2006 09:40

I think CODE have sold 93,819 since it went into auction leaving them with 56,000 from the 150K sell, but this doesn't account for what they may have bought/sold pre-auction this morning, and yesterday in the last 40 minutes. Nice money for them anyway!

[kamitora] 22/8/2006 09:21

Hello LearntLesson - I'm interested in AKI as a short-term technical play. By comparison SOLA was a fundamentals play and I'm in it until the story changes - I think the big money there is to be made over the longer term.

There was a distressed seller in AKI yesterday, we don't know why but last night I trawled through the prospectus (the pre-IPO lock-ins run up to next February), ran various news searches, checked the FDA website for any product /company warnings (a handy tip for medical companies), and came up blank. I think there may be a technical bounce though you have to wonder whether that seller has any more stock to unload. CODE probably picked up that 150K of stock and they don't look like they're moving until they've got rid of more of it. Will we run out of buyers before they run out of stock?

I used to work in AKI's sector and looked over the company when it floated - though ultimately I passed on it. I like some of the company's technology. I think it may be attractive to potential predators, though probably not until more trials are done. But it's loss making - and will be for the foreseable future. It probably has enough cash for up to two years (barring exceptionals) but doubtless they'll be back to the market for more. Valuing companies like this is difficult.