Medical Solutions Share Discussion Threads

[cmillar] 03/4/2007 08:04

£125k for 40%.

Doesn't sound like it can be a very big 'operation' . Wonder what the expected boost to revenue is?

[stevi1111] 03/4/2007 07:06

3 April 2007

Medical Solutions plc

("Medical Solutions")

MEDICAL SOLUTIONS ACQUIRES STAKE IN PRIVATE HEALTH PROVIDER

The Board of Medical Solutions plc (LSE: MLS), the diagnostics and healthcare
business specialising in histopathology and cytology services and products,
announces the acquisition of a 40% stake in Number One Health Group Limited
("Number One Health"), a private healthcare provider based in Harley Street,
London.

Highlights

* Medical Solutions has agreed to pay £125,000 for 40% stake in Number One
Health

* This opens up a new channel for Medical Solutions to market its existing
portfolio of diagnostic tests

* It also provides an opportunity for Medical Solutions to expand its
pathology service

* There will be increased scope for cross selling opportunities and
operational savings

This investment provides a channel through which Medical Solutions can market
its existing portfolio of diagnostic tests directly to the public. Over the
coming months, Medical Solutions will be enhancing its portfolio and bringing
new diagnostic tests on stream that are likely to be of prime interest to the
private sector.

In addition to the sales and marketing opportunities, there are other benefits
inherent in the partnership with Number One Health. Diagnostic testing that is
currently outsourced by Number One Health can be performed at Medical
Solutions' reference laboratories in Nottingham.

Further, Number One Health offer services complementary to those of Medical
Solutions such as immunisation and disease testing, which affords opportunities
for the expansion of the Medical Solutions pathology service. Medical Solutions
expects to be able to provide first-rate financial and administrative support
to Number One Health, thereby increasing the efficiency of its operations.

Medical Solutions has subscribed for 40% of the ordinary share capital of
Number One Health for consideration of £125,000. Dr Charlie Easmon, the founder
of Number One Health and Medical Director, will retain a 60% ownership in the
business. Medical Solutions has also agreed a loan facility to Number One
Health of £125,000 to be drawn down in stages.

Dr Nick Ash, Managing Director of Medical Solutions, said:

"With patients becoming increasingly knowledgeable, and more demanding, about
their diagnosis and treatment options, the logic of combining sophisticated
diagnostics directly with patient consultation in a single vertically
integrated business is compelling and probably unique within the UK."

[stevi1111] 02/4/2007 23:34

Simon, thanks for the offer. I've taken note of your number.

If I were you I'd remove it. Some very strange people on here.

[warranty] 02/4/2007 17:27

Crikey,

Weeza goin up agin, yipee yeehaaaa.

Sorry, but doesn't take much to get me excited with MLS and any blue is to be celebrated. Break out the Pomerol.

[shiny1000] 01/4/2007 21:46

simon, well done.,

[simon cawkwell] 01/4/2007 21:43

stevi111,

I have enquired into PNC and I assure you that you are utterly mistaken. By all means telephone me on 020 7835 0868.

Simon Cawkwell

[lbo] 30/3/2007 13:53

GSK files cervical cancer vaccine Cervarix in bid to topple Merck & Co's Gardasil - 30/03/2007

GlaxoSmithKline has entered into the battle for the potentially lucrative cervical cancer vaccine market by seeking approval in the USA for Cervarix, which it hopes will compete for the top spot with Merck & Co's Gardasil.

GSK has submitted a Biologics License Application for Cervarix to the US Food and Drug Administration and if approved, the vaccine will be indicated for the prevention of cervical cancer and precancerous lesions associated with human papillomavirus. The filing includes data from clinical trials in almost 30,000 females aged 10 to 55 "and reflects an ethnically diverse population," the company noted, adding that the submission also contains positive results from the largest Phase III cervical cancer vaccine efficacy trial to date, which was conducted in more than 18,000 women aged 15 to 25. GSK has also filed for approval of Cervarix in Europe, Australia, Canada, and "major countries" in Asia and Latin America.

The UK drugs giant is confident that Cervarix is going to make a big impression on the market, despite Merck's headstart with Gardasil, thanks to the fact that it employs an adjuvant system called AS04, "intended to enhance immune response and increase duration of protection." GSK recently started a study to compare the immunogenicity of Cervarix against Gardasil, which has been available in the USA since last June.

GSK's chief executive Jean-Pierre Garnier said that the filing is an important milestone for the firm, adding that "we believe that the best possible protection against cervical cancer will include routine screening together with a vaccine designed to provide targeted, durable protection against the most common cancer-causing virus types." The filing includes a considerable amount of data for virus types 16 and 18 that cause 70% of cervical cancer cases worldwide, as well as data for other virus types that can lead to cervical cancer.

It is the durable protection claim that makes GSK feel that it can make up for time lost to Gardasil and some analysts feel that being second to market will not prevent Cervarix from generating sales of $2.5 billion by 2011 and getting a 35% market share in the USA, and 50% abroad. The FDA is scheduled to decide in a month on whether it will give GSK's Cervarix application a priority review.

The cervical cancer vaccine issue is a hot one at the moment and although Gardasil sales are growing strongly, much controversy surrounds the efforts in some US states to mandate the vaccine for schoolgirls, and Merck recently suspended its lobbying campaign for laws requiring use of its treatment. However countries in Europe seem less concerned about the ethics of such a move and France's High Counsel of Public Health has just recommended vaccination for girls aged 14. Germany's Standing Vaccination Committee has also recommended that all girls between 12 and 17 years of age receive the vaccine, while Italy has stated that it will vaccinate 12-year-old girls once the vaccination centres are set up.

[bigpunt10] 29/3/2007 08:03

With you Bobby.

[bobby.ifa] 28/3/2007 21:16

I've just popped 4k into my mini ISA and will buy 60k of these tomorrow for a speculative takeover punt at around the 12p mark. As someone has indicated, the cash alone is worth 7p6-7p per share, add back the value of the LBC contracts and the further add on Sales that could be created by the acquirer with their products would create a little more premium.
On a side note a small punt at Millwall might work if they are part of the Olympic regeneration.
No advice intended, just musings and think for th'sen

[newsman3] 28/3/2007 07:37

A lovely bright spring morning.

[siwel100] 27/3/2007 22:37

Someone seemed happy to buy up the selling today with that 1m buy at the close..

[lbo] 27/3/2007 13:16

I suspect this is the VC that was sniffing around MLS

[safman] 27/3/2007 12:02

one last thing to mention, esp when it comes to AIM stocks.. is there an equity interest for the directors ?.. if they hold a miniscule amount, that is when its time to be wary.. shareholders interest should be tantamount.. and be aligned with dirs interests..

sometimes when equity is not interesting (which is what we shareholders buy into), then fees, fat cats come into play..

saffy!

[pbracken] 27/3/2007 11:45

bobby - Dubai was sold for £16.5m. It owed Varkey £2.5m, but itself was owed £0.9m. Net proceeds of £13.2m imply fees of £0.8m, around 6%. Still too high, but not 10%.

[safman] 27/3/2007 11:43

well, they've managed to resolve the cash issues at PNC after 4 yrs of nothing.. will be suspended in a few day and guess what.., nothing for shareholders ..just fees for current dirs..

MLS have chosen well with turnbull.. hes going to "bulls" it up for them..eh

saffy..

[stevi1111] 27/3/2007 11:28

Simon Cawkwell....

I prefer to look at the evidence presented here.

Laurie Turnbull took over the helm of PNC.....Soon after he sold off the assets to a friend + former associate of PNC leaving a worthless shell behind. Shareholders lost the lot.

How do you explain that? He never had PNC shareholders best interests at heart. Why on earth should he be different here ? For all we know he could spend 4 years at MLS doing sod all just taking his yearly wage in the process (As has happened in PNC)

I sincerely hope he means well for MLS for the sake of some long suffering shareholders here but I would'nt bet on it.

[simon cawkwell] 27/3/2007 10:42

dealy,

FWIW I agree with your valuation.

Simon Cawkwell

[lbo] 27/3/2007 10:35

I suspect that this was them last time too in the RNS on the 22nd December 2004 when MLS were last approached.

On 15 December 2004, the Company announced that it had received an approach froman unlisted, principally venture-capital backed, US-based company, which may or may not lead to an offer being made for the Company

[lbo] 27/3/2007 10:28

Going on rumours, I think it will be 9p.

05Oct2006-Medical Solutions hike on bid speculation

https://uk.etrade.com/e/t/uk/NewsContent_Component?cmenu=Article&ArticleId=2598136

Shares in Medical Solutions Plc jump 12.5 percent to 6-3/4 pence on speculation of a takeover approach, traders say. The bid price would be likely around 9 pence, one dealer says.

Medical Solutions, which specialises in pathology and cytology products and services, sold its Dubai-based pathology business last month, generating net cash proceeds of 12.9 million pounds. The company has a market capitalisation of 13.7 million pounds.

[pbracken] 27/3/2007 10:28

You're assuming, dealy, that the current rate of growth will persist; that assumption is manifestly bearish - and leads you to your valuation.

But the market has (also) to consider the alternative - that management can deliver stronger growth. If that is the case, the valuation equation changes markedly, which is why NOMURA reckons the UK business is worth 2 times annual sales, or 6p a share.

So, there we have the markers. On the one hand we have investors like you who see limited upside (though 30% isn't too bad) and others more bullish who see massive upside (NOMURA's latest price target is 14p).

Importantly, the downside is limited by virtue of the cash - indeed, the company is worth more than the mkt cap on a cash-only basis.

That means, in effect, you are able (today) to invest in a very low-risk company. There are not many of those about on AIM.

[dealy] 27/3/2007 10:18

LBO,

great post. I do believe a bid is the only way we will see a rise in the share price. But as I said, I don't see this being higher than 8.5p.

Already back in October/November the company outlined its strategy to focus on the UK and develop the business. 6 months later we have the same words and no accomplished actions.

[siwel100] 27/3/2007 10:17

Dealy...To slash costs as they did but still maintain a 7% growth is actually a hefty achievment.A company driving costs down is hardly one that is being complacent.

[lbo] 27/3/2007 10:14

With Dubai gone I now expect a bid and my money is on these guys. Also remember MLS were already approached when things were a lot worse and I also suspect they did not want the Dubai business.



The merger of Pharmagene with the private US company Asterand is not likely to be its last bit of corporate activity. The Royston-based biotech abandoned its unsuccessful drug development work this year to concentrate on its division which collects and tests human tissue left over in hospitals. The faster-growing Asterand also collects and sells human tissue for medical research, so putting the pair together should create a global leader in thisfield.

Between them the pair collects samples from more than 50 hospitals across the globe, and supplies the tissue to 15 of the top 20 pharmaceuticals companies in the world. The theory is that these companies will increasingly test experimental drugs on fresh or frozen human tissue, cutting down on animal testing.

The combined group - to take the name Asterand - will be headed by Randal Charlton, the Detroit company's founder and chief executive. He began his career as a journalist, and recently wrote a book on women's soccer, but also has 10 life sciences company directorships under his belt. Ronald Openshaw, Pharmagene's caretaker chief executive, is staying on board as finance director. He is a former investment banker and clearly still has an appetite for deal-doing.

He will have been scouring the competitive landscape for a rival to buy, to help bring Asterand quickly to profitability. Medical Solutions and Cytomyx are the two UK-listed companies with tissue services divisions. Might a cheeky bid for one or the other be in the offing once Pharmagene's merger is voted through next week?