Aortech Share Discussion Threads

[landy90] 12/6/2018 22:00

Bones no royalty issues

[brucie5] 12/6/2018 21:24

Ok. Just downloaded their circular, which is clearly the essential answer to my now edited question. I will study with interest!

[bones] 12/6/2018 18:54

Most likely Landy90. I hope Biomerics interest is limited to the margin share on the polymer sale only and not all the IP growth afterward.

[landy90] 12/6/2018 18:48

RUA will source from Biomerics, why re invent the polymer manufacturing wheel?

[bones] 12/6/2018 18:44

I am not sure that Biomerics shares in anything AOR makes from the NEW deals. The old deal entitled Biomerics to manufacture for "existing" AOR customers and any of its own that it generated.The new partner, RUA Medical, is a manufacturer of devices so maybe will have the ability to make the polymers in house.Again, it will be the small print that determines where Biomerics interest ends here.

[brucie5] 12/6/2018 18:38

Ok, thanks gents. Yes, I was impressed by the ambition implicit in the options set at £3.

[landy90] 12/6/2018 18:32

Biomerics do not have any rights to determine what AORTECH use the polymer for, they will be a supplier to AORTECH

[brucie5] 12/6/2018 17:14

Re exclusivity, I understand that the license and supply agreement with Biomerics covers all its products. Has this now changed?

[brucie5] 12/6/2018 16:56

Good discussion. Could you explain which segment biomerics has exclusivity over. And if 'patches and grafts' are one strand, bones, which is the second of which you speak..?

[bones] 12/6/2018 16:50

I agree Nextlink. I am not expecting long lead times on the first two strands of strategy.

[nextlink] 12/6/2018 16:24

I expect news on patches and grafts within a short time frame.
Elast-EON has had years of use with regulatory approval, suggesting
approval for new products may take less time than expected.
Management have been preparing since the litigation was settled and
possibly longer, so at least 6 months.
William Brown has brought the company through two legal disputes with
American Companies,when many thought it would be the end for Aerotech.
I look forward to anticipated newsflow.

[bones] 12/6/2018 16:17

As previously highlighted, there has been £30M already invested in the heart valve R&D so this is where a lot of value is latent and not reflected in the share price.

[bones] 12/6/2018 16:08

"an artificial heart valve that is cheap and not subject to rejection is the holy grail"

Indeed, harrogate :)

[harrogate] 12/6/2018 15:49

Of course you need to do what you need to do but not listening to alternative views seems a strange investment strategy. I am sure we won't depress you into selling ! Biomerics have exclusivity - The new partners are all about the new areas not covered by the Biomerics deal hence my thoughts. I believe this is a punt on the heart valve - which could be massive as has been detailed on this thread by others - an artificial heart valve that is cheap and not subject to rejection is the holy grail.

[bones] 12/6/2018 15:32

Ultimately though it's too easy to be half-empty-glass about these types of share. It's almost pointless. If I were a cautious investor, I would not even be in this! The risk is high but the reward potentially far higher (especially at £5M m/cap) and that is the judgement I make. Positivity is all-important to me and I have no intention of talking myself into selling. If this thread becomes a talking shop for cautious downsiders, then I may have to exempt myself from looking in here :)

[bones] 12/6/2018 15:20

I don't know enough about the Biomerics rights so far as manufacturing the polymers is concerned and whether there is exclusivity. It seems to me that the new partners are manufacturers in their own right so I'm not sure Biomerics have any say in the new products. It's down to Biomerics to sell to licensees but that's the old part of the trade.

I would want to clarify these details at the next AGM.

[harrogate] 12/6/2018 15:08

I am afraid I don't see adapting existing devices to include Elast-eon as either near term or fairly certain ( or that major ). Biomerics have control of that in any case don't they?. I hope I am wrong as new licence deals for current tech would be great.

[bones] 12/6/2018 15:01

It's not just the heart valve though. That's the longer term, higher risk part of the deal. There are two strands of nearer-term, fairly certain routes to profitability via adapting existing devices to include Elast-Eon. Seeing the background of the two development partners involved gives me good cause for near-term optimism.

To say it's all about the heart valve and to reference the long history of middling progress is to miss some of the point, I think. I believe the strategy has been carefully thought out for both near term stability plus lashings of higher risk potential.

[brucie5] 12/6/2018 14:56

Good post Harrogate. Yes, if you look at early stage companies like EDEN or NANO, even AFTER they have those licensing deals... I was only trying to point out that the mcap is pretty low, and therefore could present a good base line point of entry for the kinds of good news which will hopefully follow.

[harrogate] 12/6/2018 14:51

Isn't the fact though that this company will never be valued on profits based on its current strategy - it is going to be lossmaking now for the foreseeable future as the money raised gets spent on both the developments and the increased corporate costs The share price will react to any positive news on developments around the heart valve. Given it is years away from any commercial revenue it is all about technical progress and the licensing deal that will be struck if that progress is exciting. The nature of that deal and the name of the licensee(s) will be what drives the value. That might be very exciting indeed but it will not be a slam dunk and I would have thought further funds will need to be raised. I see no reason to think that there is going to be a sudden and imminent large increase in the share price now.

[brucie5] 12/6/2018 14:50

The Stigologist
12 Jun '18 - 14:48 - 4638 of 4638
0 0 0
Have you shown your granny how to suck eggs today?
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?????????????????????????????????????????????????

[the stigologist] 12/6/2018 14:48

Have you shown your granny how to suck eggs today?

What utter pish

[brucie5] 12/6/2018 14:43

Current mcap at 5m, with 2.5m in the bank and 500k in licence sales to cover basic admin. I notice the NED's fees don't come cheap, and neither should they, but that will eat into capital along with other slated spending, so there needs to be progress soon, with a clear strategy that demonstrates earlier rather later route to profits. After the last twenty years of not going anywhere, the new strategy really needs to show something new, and preferably imminent, to distinguish from any other pre-profitable tech AIM share.

The upside, of course, is there in the tiny capitalisation. On the back of, say, 5m profits and a PE of 20, this has 100m valuation for starters. That's a twenty bagger.
Cut that in half and you have Stockdale's valuation, more or less. So maybe not so far out.

[k1ngkonggb] 12/6/2018 10:48

It does amaze me that these kids are happy with making a quick £50 - £100 quid profit. I suppose if they can leverage a few of these each day then it pays for the multi-pack of crisps!!!!

Profit is a profit!