Omega Diagnostics Share Discussion Threads

[barrywhit] 21/11/2016 10:20

longshanks,

paragraph below is probably the reason:

Given the lack of clarity on IDS's intentions, we continue to reflect the carrying value of the Allergy Business in line with our Accounting Policies.

[longshanks] 21/11/2016 09:57

I am surprised that IDH have made no announcement (RNS) to acknowledge (or refute) the statement made today by ODX.

[barrywhit] 21/11/2016 08:31

At least a sale of Allersys would be all the required funding to bring CD4 to commercialization....

[leedslad001] 21/11/2016 07:48

Let not rule out the possabilities that another company might submit a bid for this. It would be peanuts to thermo fisher to buy this and eliminate a competetor

[longshanks] 21/11/2016 07:43

The Allersys development spend as of the last final report stood at £5.5m.I would expect a takeout price of £10 to £12 million for the entire allergy business.I guess the uncomfortable bargaining point is that IDH can if they wish cancel the license agreement and necessitate a large write down of the Allersys development. However that seems rather pointless and wouldn't provide any commercial advantage to IDH.The truth is that IDH have the cash, and the need to diversify their offering because of the long term decline in their core vitamin D testing. I think they will pay £12m to get a good amicable transfer of assets and expertise.

[p1nkfish] 21/11/2016 07:39

Why not start a JV?
IDS need ODX personnel and abilities and ODX need IDS on side.
I think price would be > 1.5x sales due to growth.
If handled poorly no one wins.

[barrywhit] 21/11/2016 07:37

Interesting statements, do we really want to sell Allersys?


Regarding outlook, David Evans, Chairman, said:

"We have made good progress on our key Visitect(R) CD4 development project and we have also covered much ground in bringing our Pune facility to a state of operational readiness and these activities are expected to contribute to growth in shareholder value over the shorter term.

"We have recently been approached by our Allersys licensor (Immunodiagnostic Systems Holdings plc "IDS") with a view to changing the nature of the commercial relationship with the Company. This could extend to the acquisition of all or part of our Allergy Business.

"We will update the market as soon as we have a clearer understanding of IDS' intentions but as things stand, the outlook for the rest of the financial year is encouraging within our core business with revenue and adjusted profit before tax expected to be at the higher end of market expectation due, in part, to favourable currency movements."

within its business to meet its short and longer-term objectives. As a consequence, the Directors believe that the Group is well placed to manage its business risks successfully and capitalise on the new product opportunities despite continued uncertainties with the macroeconomic outlook. The Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis of accounting in preparing the interim financial statements.






We have recently been approached by our Allersys licensor (Immunodiagnostic Systems Holdings plc "IDS") with a view to changing the nature of the commercial relationship with the Company. This could extend to the acquisition of all or part of our Allergy Business.

Given the lack of clarity on IDS's intentions, we continue to reflect the carrying value of the Allergy Business in line with our Accounting Policies.

Under the terms of the 2011 agreement, the license can be terminated by IDS should they wish to do so. We believe that it is in both parties' interests to explore all the possibilities of a new commercial relationship and to avoid a situation whereby there are no winners should IDS exercise their right to terminate the contract/license.

This information is provided by RNS

[arthur_lame_stocks] 21/11/2016 07:34

The only problem as I see it is that IDS can terminate the contract with ODX so they may be hoping to pay a low price as they have ODX somewhat over a barrel, although presunably terminating the contract would hurt them too.

It's an interesting situation. All the profit at ODX comes from food intolerance anyway so selling they allergy business may be a good idea.

[rivaldo] 21/11/2016 07:32

Great to see ODX able to confirm already that PBT for the year is "expected to be at the higher end of market expectation".

And that the malaria and pregnancy tests will be available for sale in Q4.

It's not just Allersys that might be sold, but the entire Allergy business. Does this include the Autoimmune operation as well?

With say £3.5m sales in the year it might be worth say 1.5 times revenues, plus a decent amount for the now commercialised Allersys too, so say £8m-£9m? That's a complete stab in the dark, so feel free to disagree completely!

[shanklin] 21/11/2016 07:27

IDH had £26.5m in cash on its balance sheet on 31-Mar-16:

[leedslad001] 21/11/2016 07:24

How much do we think this is worth?

[longshanks] 21/11/2016 07:05

What a bombshell: sale of Allersys in the offing

[longshanks] 18/11/2016 09:39

In the trading update they said they hoped to conclude a long-term contract with a customer for the new Allersys array in the "very near future" so I am hopeful of this having been completed.They have also been launching their malaria POC device (similar to visitect) so again I am hopeful they will be reporting some initial sales contracts for that.On CD4 I am not expecting much over the details in the trading update. If they have secured some financial support from UNITAID to help with field trials - and news of those trials - then that would be a good development. I am confident they are moving closer to commercialisation - but they really need to get it done right.

[rivaldo] 18/11/2016 08:40

Nice reminder barrywhit. We know from the update that the results will be good, so we may well see a move upwards in the share price in reaction.

Hopefully there will be more news on CD4 and Allersys, though there was a pretty full update on 17th October, so I'm not sure there'll be much more to say since then.

[barrywhit] 17/11/2016 11:26

Interim results on Monday, hopefully we will also get an update on the Automated Allergy Platform and CD4 progress....

[rivaldo] 14/11/2016 10:50

Cheers longshanks. UNITAID have already given funding in the past for the CD4 test, so maybe more is in the offing now that CD4's teething troubles have been sorted out.

[longshanks] 14/11/2016 09:21

The company also posted a new job last Friday: Assay Development Scientist

[longshanks] 14/11/2016 09:07

I got a twitter alert that OmegaDiagnostics was now following UNITAID.UNITAID have just announced A massive new investment program in diagnostic tests.Could be pertinent.

[rivaldo] 14/11/2016 08:46

Nice start to the week - anything up (apart from the share price!)?

[p1nkfish] 08/11/2016 18:48

Ekf, very good results. Good sign for diagnostics in general.

[barrywhit] 08/11/2016 11:49

Continued small sells dragging this down, shame......GLA LTH's

[p1nkfish] 31/10/2016 19:48

I think you are probably close to the mark with Chris Mills ready with his wallet via Harwood or Oryx or NAS.

[longshanks] 31/10/2016 16:42

That is wishful thinking I am afraid.

The fact that we are trading at a deepening discount to NAV would imply that shares should be placed at a premium, but the truth is that they won't - and most shareholders won't get to benefit from the "giveaway".

In May 2013, shares were trading at 18.5p when the placing was announced. A 1.5p discount was actually pretty decent, so my gut feel is that the same will happen again and we will see additional funds raised at 17p.

[leedslad001] 31/10/2016 11:18

If the company does raise cash and a new institution does want in then I would expect the placing to be at a premium to the asking price as there is no way a large holding can be bought in the market.

[longshanks] 31/10/2016 09:30

The company is definitely strong enough to support some debt, but my gut feel is that they are being seduced by potential investors (current and new) - and the temptation may be too much!