Cobra Bio-manufacturing Share Discussion Threads

[the prof2] 21/8/2009 10:47

"Daniel Robert Chapchal was a director of Schipher Plc which was placed into administrative receivership on 28 September 2004". Looks like he will soon have another one to add to the list unless he can perform miracles!

[hyper al] 21/8/2009 07:34

I have one share in this!

[the_doctor] 21/8/2009 07:26

New chairman


"Danny Chapchal, aged 64 has a reputation for managing turnarounds and helping
early stage companies bring new technology to market. His primary role at Cobra will be to develop strategic partnerships and explore financing arrangements for the business."

Poor chap doesnt have a lot to work with!

I'd be interested to see what he comes up with as a plan
My outsider aim would be to get a pharma client to give a loan that could be convertible.
Trouble is, CBF already has loaned against its assets, so the loan would have to rank below that.

Equity issue looks very tricky, given the low market cap.

The only answer IMO is to get orders signed. They should perhaps merge with Angel Biotech or other, giving one stronger company - there dont seem to be enough orders for both

[I dont hold, never have and not planning to]

[boadicea] 10/8/2009 18:00

Re: The previous link
It doesn't work even with the dot - Message "Too may redirections" etc.

This will work (until next issue). Then look in the lower half of page for next link to article detail.

"Time to bag a biotech bargain"

[alibongo612] 10/8/2009 10:23

I suspect the major holder is regretting his investment and must be very concerned

[the_doctor] 10/8/2009 10:02

your link needs a . before html by the way
& I cant get it to work

Will anyone look at CBF?
Possibly - validating the plant would cost as much as the mkt cap.

However, bear in mind that they have debt.
The cash situation is on a knife-edge.

The co. may be worth up to 6-8p/share
BUT, any buyer could possibly drive a hard bargain.
I also suspect that major holders would rather take another placing than sell for what they'd consider too cheap.

[boadicea] 06/8/2009 18:52

This link is being widely quoted -

"Time to bag a biotech bargain"


I wonder if anyone will look at CBF? Might possibly make 10p.

Glad that I majored on CEL and VEC!

[alibongo612] 28/7/2009 19:28

But the Chairman is still drawing his salary - teflon man

[the prof2] 28/7/2009 17:46

Sorry to dampen your hopes of a recovery but I have heard on the grapevine that Cobra is shutting its Oxford facility and making all the production staff redundant. Things not looking too good at the moment.

[jdb2005] 17/7/2009 08:09

Cobra should soon be out of the red and making some profit for those who have been patient here - lets hope they don't encounter another Genvec situation.
2 buys at 3.36p - 145k and 160k encouraging sign.

[jdb2005] 06/7/2009 09:03

Lets put your comments in perspective - Cobra at 3p is showing market capitalisation of only $2.0m.
It has two plants where improvements have been made to enable it to achieve higher productivity. Two new contracts would enable it to achieve breakeven in second half year. Their work with Porton Down on vaccines could prove beneficial for the company. With some deals you will not necessarily see RNS because the pharma will want their early clinical trial developments kept under wraps. What pleased me was to see some customers confident enough to place further orders with Cobra.

As I stated earlier their new CEO seems to have taken immediate action to ensure Cobra becomes more competitive and focused on its niche markets.
If he can repeat 47% gross profit margin on contracts achieved in first half year it will be a great achievement in current economic climate.

As for biotechs being in turmoil perhaps it is worth reading some of the deals / alliances that have taken place in 2009:

[the_doctor] 04/7/2009 11:45

Rohkap, great post and I personally agree.

They spend £400k on plant, so I'm guessing they expect new orders to flow in... but when.

Likewise, I see it as a concern that the orders may not come in time.

As I have posted, biotechs are facing a real cash crunch, so they need contracts with funded parties.

Not sure what you're on about re suing, but GenVec clearly had a right to cancel and had to pay for that.

[boadicea] 03/7/2009 09:45

... and some early small (£500) buyers this morning. Do we have some press comment (IC?) indicating any speculative attraction?

[weegeordie] 02/7/2009 15:42

Hello - some movement

[alibongo612] 02/7/2009 12:07

Undoubtedly there is hope but its a tightrope

CEO is getting to grips with costs through head-count reduction - quite rightly - however concern is that this is a highly technical business so lets hope that the highly specialised people he is letting go will still be available come any upturn.

On my favourite topic of the long standing Chairman who has presided over the whole of this debacle since flotation - if he had beed included in the cull the CEO would have probably been able to save several other staff - perverse in view of the Chairmans track record

[the_doctor] 02/7/2009 09:36

'Looks like Company is weathering the recession better than you thought'

Not really

I said beware that the value of CBF wasnt as great as many hoped and that the approach may just be a punt to get assets on the cheap.... it was withdrawn

I also said that there was a risk of contracts being delayed further..... GenVec terminated

They've only really done ok because GenVec pays termination fees. Long term, that will hit them.

If you think they've turned the business around, you're dreaming. BUT I did say that there is still some hope.

[jdb2005] 02/7/2009 09:28

Looks like Company is weathering the recession better than you thought - so when will you give their new CEO some credit for his sterling work in turning the business round ???

[the_doctor] 02/7/2009 08:44

'more orders, contract wins'

and of course the GenVec contract loss
It certainly isnt rosy jdb, but there is some hope still!

[jdb2005] 02/7/2009 08:35

Yes I have analysed the following trading update and feel more confident that CEO Saxby has got a grip of the key fundamental issues - slimmer management structure, reduced costs, more orders, contract wins and diversification into World markets gaining longer term stability. Note they hope to broaden their manufacturing base with be further strategic alliances. Their ORT-VAC Vaccines work looks interesting:

Cobra Biomanufacturing Plc


Interim Results
for the half year ended 31 March 2009


Cobra Biomanufacturing Plc ("Cobra" or "the Group"), the international provider of biopharmaceutical manufacturing services, today announces its unaudited interim results for the six months ended 31 March 2009.


* Revenue up 62% to GBP4.4m (H1 2008: GBP2.7m)
* Gross margin more than doubled to 47% (H1 2008: 20%)
* Losses reduced to GBP0.8m (H1 2008: GBP2.3m loss)
* Operating cash inflow GBP1.0m (H1 2008: GBP0.5m outflow)
* Deferred income more than doubled in the period to GBP2.5m (30 September 2008: GBP1.1m)
* Secured contracted order book up to GBP9.3m(1) (26 June 2008: GBP8.3m), with GBP3.6m of these orders scheduled for delivery in the current financial year (26 June 2008: GBP3.6m)

Simon Saxby, Chief Executive commenting on the outlook


"The GBP9.3m(1) secured order book confirms that Cobra has an exceptionally
skilled and dedicated team that enables us to continue to compete in the current competitive and challenging environment. These skills, combined with strict cash management, supported by an increase in revenue and further operational efficiencies have allowed us to reduce losses significantly in the period.
However despite this improved performance in the first half and our success in
winning new business to offset the anticipated, and now confirmed loss of the
GenVec, Inc contract as per the press release on 26 June 2009, the Directors
advise that market expectations for the full financial year are unlikely to be
met.


Notwithstanding, we have been and will continue to pursue outstanding near term contract signatures and opportunities for strategic alliances that will enable us to take our customers from clinical supply to commercial supply for protein based products, in the same way that we are able to for our viral vaccine customers, and thereby provide more predictable longer term revenues in the future."


(1) Signed contracted order book at 31 March 2009 plus contracted orders signed
from 1 April 2009 to 30 June 2009.



Chief Executive Statement


Financial Summary: The first half of the financial year 2009 saw a continuation of the trading improvement in the previous six months with revenue increasing to GBP4.4m, 62% higher than this time last year (H1 2008: GBP2.7m), despite the current global economic climate which has restricted the ability of our customers to raise funds for their product development programmes and as a result they have reduced their outsourcing expenditure to conserve their cash.


The increase in revenue combined with a rigorous control of costs and further
operational efficiencies at both our Keele and Oxford facilities, resulted in a
gross margin improvement to 47% (H1 2008: 20%) and a significant reduction in
the loss after tax to GBP0.8m (H1 2008: GBP2.3m). During the period we also
carefully managed our cash resources to provide an operating cash inflow of
GBP1.0m (H1 2008: GBP0.5m outflow) and a closing cash and cash equivalent
balance of GBP0.4m (30 September 2008: GBP0.3m).


Secured Order Book: Our primary objective this year has been to increase and
diversify our secured order book. In the period Cobra has won 3 new customers, 4 contracts for new products from existing customers and 7 major extensions to
existing programs. The secured order book has increased to GBP9.3m(1) (26 June
2008: GBP8.3m), with GBP3.6m of these orders scheduled for delivery in the
current financial year (26 June 2008: GBP3.6m).


Our prospective order book also remains strong with leads from Scandinavia,
Eastern Europe and Japan in addition to further expansion in both our European
and North American customer base. The secured and prospective order book
reflects the strength of Cobra's reputation in the biopharmaceutical contract
manufacturing market and confirms the potential for future growth.


Revenue: Revenue from our North American customers was still predominant in H1
2009 contributing GBP2.3m (H1 2008: GBP1.4m) or 53% of the total (H1 2008: 51%).
Revenue from European based customers (including the UK) provided GBP1.2m (H1
2008: GBP1.2m), 27% of the total (H1 2008: 44%) and revenue from the Rest of the World grew significantly to GBP0.9m (H1 2008: GBP0.1m), or 20% of the total (H1 2008: 5%). The increase in the global spread of Cobra's business provides for a more robust future with less reliance on a single market.


Protein based revenue (including license revenue) increased to GBP1.7m (H1 2008: GBP1.0m), 37% of the total (H1 2008: 39%) resulting from a more focused
marketing effort on mammalian cell derived proteins, using our maxXpress
technology protein expression service. Virus based revenue also grew
significantly in the period to GBP1.8m (H1 2008: GBP0.8m), 41% of the total (H1 2008: 30%) maintaining Cobra's position as a leading supplier in this market, with the remaining revenue split between DNA generating revenue of GBP0.6m (H1 2008: GBP0.8m) and Cell Line revenue of GBP0.3m (H1 2008 GBP0.1m).


Restructuring and Strategy: Having reduced the headcount from 140 to 110 and
improved operational efficiencies over the last 18 months, this year we have
also reduced and restructured our senior management team, to reduce cost and
improve our decision making process. The senior management team's focus is on
making the most efficient use of the skills within the Group through a
comprehensive cross-training programme to maximise resource utilisation on a
much lower production headcount, without restricting our ability to generate
revenue.


Despite the headcount reduction our aim remains to fill existing capacity as
well as grow Cobra's capacity further through a number of potential strategic
options.
ORT-VAC: Cobra has generated promising preclinical data around our Oral Vaccine technology, ORT-VAC, for which the Group currently owns 62 granted patents. The ORT-VAC program is developed on a low cost basis, funded primarily by grants and collaborations. The preliminary data using attenuated (i.e. weakened) Salmonella to deliver the vaccine, demonstrates effective protection against bubonic plague and anthrax. Further trials are ongoing with collaborators for the treatment of Malaria, HIV and Influenza (using the H1N1 influenza strain). Work is also being performed to confirm or enhance the effectiveness of the technology using a different vector, Shigella, to deliver vaccines.


We believe that ORT-VAC has the potential to deliver higher doses of vaccines to multiple diseases at a much lower manufacturing and distribution cost than
traditional vaccines, due to a simpler manufacturing process and the reduced
requirement for 'cold chain' storage and distribution.


Outlook: Cobra operates in a highly competitive market which has been
significantly affected by the current global downturn, but we continue to win
business because of the strength and breadth of our scientific expertise, our
service offering and our reputation for delivery. We are also beginning to reap the benefits from the development of our own intellectual property, with 7 customers and 11 potential products now using our maxXpress protein expression service, with the future possibility of milestone and royalty payments dependent upon the success of our customers' drug development programmes, as well as the positive results from our own ORT-VAC oral vaccine technology development programme.


The GBP9.3m(1) secured order book confirms that Cobra has an exceptionally
skilled and dedicated team that enables us to continue to compete in the current competitive and challenging environment. These skills, combined with strict cash management, supported by an increase in revenue and further operational efficiencies have allowed us to reduce losses significantly in the period.
However despite this improved performance in the first half and our success in
winning new business to offset the anticipated, and now confirmed loss of the
GenVec, Inc contract as per the press release on 26 June 2009, the Directors
advise that market expectations for the full financial year are unlikely to be
met.


Notwithstanding, we have been and will continue to pursue outstanding near term contract signatures and opportunities for strategic alliances that will enable us to take our customers from clinical supply to commercial supply for protein based products, in the same way that we are able to for our viral vaccine customers, and thereby provide more predictable longer term revenues in the future.

Simon Saxby
Chief Executive
30 June 2009


(1) Signed contracted order book at 31 March 2009 plus contracted orders signed from 1 April 2009 to 30 June 2009.

[the_doctor] 30/6/2009 07:22

Well jdb, I think you might just be ok!

On a knife-edge still though.

They MUST get additional orders in or they could be falling back to the cash-burning days of 2008.

Aug 2009 will reduce some uncertainty.

Something to be aware of.... it depends where Cobra gets its business from. Small biotechs are worryingly short of cash. If contracts are with them, you may see revenue fall off. That would be something worth checking.



"The ability of the Group to continue as a going concern is therefore dependent on the Group achieving the level of contract signatures anticipated in the forecast and converting these forecast contracts into revenue and cash receipts in line with expected timings assumed in the forecast. Where forecast contract
signatures are not achieved, or are not achieved within the expected timeline,
the Group will then be dependent on additional orders that are currently not in
the sales pipeline. Additionally, although there is a risk of non renewal the Group is dependent on the continued availability of the overdraft facility on the same terms as it is currently when the facility comes up for renewal at the end of August 2009"

[alibongo612] 29/6/2009 09:58

and still the old guard element of the management is allowed to fester on

[the_doctor] 29/6/2009 08:53

"seeking new customers to offset the longer term impact of this anticipated termination"

I'd imagine this is a bigger negative than the settlement is positive I'm afraid

[the_doctor] 29/6/2009 08:52

"Further to the trading statement announced on 23 March 2009, Cobra announces
today that it has been notified that the material contract that was placed on
hold until the 30 June 2009 has now been terminated by the customer."

Not great news.

Sorry jdb, but this is exactly the sort of risk I highlighted.
Is it the Genvec contract?

Look back at the accounts' going concern comments and you'll see that any materials delays could have major implications.
Cobra cannot get more loans in all likelihood (it already has)
Raising cash from equity could be challenging.

One hope for holders is perhaps that existing large holders will provide funds BUT if the long term business isnt going to make money, then why bother. It is ALL about contracts and this is bad news.

It makes me wonder if this party was the same that looked to make an offer... and is playing a game to get Cobra on the cheap??...

Please note, this is not a deramp. Simply following the story and posting my thoughts.

[jdb2005] 29/6/2009 08:16

Cobra Biomanufacturing Plc
26 June 2009
Trading Statement

Further to the trading statement announced on 23 March 2009, Cobra announces
today that it has been notified that the material contract that was placed on
hold until the 30 June 2009 has now been terminated by the customer.


As announced previously the payments received under the variation and
termination of the contract compensated Cobra for any immediate shortfall in
revenue as a result of the contract being on hold and over the past three months Cobra has been actively seeking new customers to offset the longer term impact of this anticipated termination.


Cobra will announce its interim results for the half year ended 31 March 2009 by the 30 June 2009.

Genvec has decided to concentrate on their main drug development which will require most of their funds.

Cobra had not included any income from Genvec in their accounts for last year so IMHO the settlement will go straight to the bottom line.