Omega Diagnostics Share Discussion Threads

[barrywhit] 02/8/2016 10:54

From the April 2016 RNS below:

Allergy development - IDS-iSYS automation update

We have now reached our target and have optimised 41 allergens which will be included in our initial launch panel. All of our Allersys(R) reagents have been evaluated on the IDS iSYS(R) analyser to demonstrate performance that matches with the market-leading product. We are currently in the process of building up inventory levels to support a market launch in the near future. Our scientific team, in conjunction with our contracted partner, is already working on delivering menu expansion beyond the initial launch panel.

External evaluations have now been completed in Spain, Italy and France, with a fourth ongoing evaluation in Germany. Of the three completed beta studies to date, we have now tested over 1,000 patient samples with 18 different allergens from our Allersys(R) reagent range and results are in line with our internal claim support work. These external evaluations, in conjunction with our claim support work, will enable us, as outlined in November last year, to CE mark all 41 allergens during the early part of the current financial year in readiness for launch.

Surely they can't be that far away from CE Approval and Launch....

[rivaldo] 02/8/2016 09:45

The thread header unfortunately omits the m/cap, so it's worth remembering that this £1.8m grant itself equates to almost 10% of today's opening £19.57m m/cap.

[lanzarote666] 02/8/2016 08:13

Interesting RNS, and reason to take an initial position this morning.

Funds should accelerate growth, so target prices may be revised upwards.

NAI. DYOR

[barrywhit] 02/8/2016 07:32

Very good RNS this morning, a tidy sum of funds....

[hyperboreus] 02/8/2016 07:09

Good news regarding R&D Grant Funding:

[rivaldo] 02/8/2016 07:09

Wow - RNS today for ODX's receipt of a £1.8m grant towards Allersys :o))



"Omega (AIM: ODX), the medical diagnostics company focused on allergy, food intolerance and infectious disease, announces that it has secured a Scottish Enterprise research and development grant of £1.8 million. The R&D grant represents a significant contribution towards the total R&D project costs to fund the planned expansion of the Company's Allersys® range of reagents for use in allergy in vitro diagnostics.

The project funding will be used to accelerate a growth in menu from 41 allergens to 120 allergens over the next three years to cope with anticipated increasing demand as noted by the following references:

etc"

[rivaldo] 01/8/2016 14:54

Two buys totalling 38k shares have each caused a tick up.

Agreed longshanks, I've also met CB and consider him honest and reliable. One of the old school (that's a compliment). And he loves SCE too :o))

[longshanks] 21/7/2016 22:47

I have met Charles Breese and he is a lovely man and has a similar passion for the same kinds of investment that I make.If he is invested here - then I am very happy.

[rivaldo] 21/7/2016 22:35

Good post bomber13, cheers.

Nice article here written by Charles Breese, a successful investment manager for over 30 years:

http ://www.proactiveinvestors.co.uk/columns/smartco-select/25528/selling-and-creating-the-crown-jewels-25528.html

"AIM listed Omega Diagnostics recently released its final results to March 2016 - its business is developing and marketing assays for the Allergy and Autoimmune, Food Intolerance, and Infectious Disease sectors. The architect of the company is David Evans, a leading UK developer of healthcare diagnostic companies - he played a key role in the development of DxS leading to its acquisition by Qiagen. I have followed (and become a shareholder in) Omega following its reversal into an AIM listed company in September 2006 - its sales were then only £2 million, but it had a distribution network covering over 100 countries, which meant that Omega could acquire businesses which were predominantly selling in their home countries and resource efficiently enable them to expand internationally.

Since 2006, Omega has made several acquisitions. The results to March 2016 showed sales of £12.7 million and adjusted operating profit of £971,000, with Food Intolerance being the prime driver of organic growth with sales of £7.1 million and the sales of the other two divisions being split c.50/50. What makes the company interesting is that this profitable business has been undertaking two developments each of which has the potential to deliver transformational growth, namely:

IDS/Allersys

In 2010, the German allergy business, Allergopharma, was acquired from Merck - its sales were based entirely on manual assays. However, in order to significantly expand the business both within Germany and internationally, it was necessary for the assays to be able to be used on automated instruments. Accordingly, a contract was signed with AIM listed Immunodiagnostic Systems (IDS) for exclusive use of the IDS-iSYS automated instrument worldwide within the allergy market - the development of the initial menu of 41 allergen assays for use on the instrument has been technically challenging, but discussions are now at an advanced stage to achieve sales in 2016/17 via IDS and its marketing partners.

Visitect CD4

In June 2012, Omega acquired exclusive access to two point-of-care tests (one for CD4 and the other for Syphilis) developed by the Burnet Institute in Australia - testing for the number of CD4 T-cells is a vital component for the management and care of people suffering from HIV and is required to determine when HIV patients should commence antiretroviral treatment - again the technical challenges encountered have been significant but considerable progress has been made, albeit that the commercialisation timetable is behind that for IDS/Allersys. The product has been developed so as to be economic for use in less developed countries, where there is a signicant HIV population.

My holy grail of SMARTCO investing is to find profitable companies on reasonable valuations undertaking developments capable of transforming the business!"

[bomber13] 20/7/2016 09:46

A few significant things struck me about the annual report , which came out last week -

1) It is entitled " Accelerating Growth " , as opposed to last year's rather bland " Fighting Global Healthcare Challenges Through Innovation " . The CEO talks of " renewed and invigorating growth " , and in the same breath the chairman states the company does not want to over-promise or under-deliver . Given what has gone on before , this is about as confident as you will get .

2) The 41 allergans are now in inventory build for launch in the next few months .

3) Visitect will be commercialised , and there is still a huge unmet need .

4) Colin King , the COO , has already brought massive improvements to processes , communications , morale , and execution , and has " energised " the company . He has spotted several organic growth opportunities away from allergans and Visitect , and he was the only director to get paid a bonus last year .

5) One and a half pages are devoted to Colin King in person . He says he has no regrets in leaving Axis-Shield despite not finishing the job there , and that he is even more excited by the opportunities at Omega than when he first started . His option package will make him very hungry , moreover . It is 1.2m shares @ 13p not exercisable before 29/09/19 , 50% on the shareprice going over 50p and 50% on cumulative EPS growth of 10% in the next three years .

The next year or two promise to be extremely exciting .

[barrywhit] 20/7/2016 07:35

Lets hope so longshanks, but it will need a good update on either CD4 or the Allergy platform, can't keep being jam tomorrow....we must be close to an update....

[longshanks] 19/7/2016 14:45

Price starting to pick up again: round 2 on the push for 20p?

The price has barely changed in the three years since £4m was raised to finance the CD4 device and the iSys allergy array at 17p.

This is the third time since, that the price has trended upwards - without quite breaking out. Each time before the price has crept back down to just below the placing price. Is this third time lucky?

[longshanks] 05/7/2016 17:42

300k late trade reported. Director's haven't bought for a while: wouldn't be surprised if we have a few being bought by them.

[barrywhit] 04/7/2016 21:20

Looking at the late trades just showing there are a few million changing hands.....

[longshanks] 04/7/2016 10:14

I wonder who asked whom for the trade?

[rivaldo] 04/7/2016 08:44

Yep, looks like they top-sliced by exactly 2m since they now have a nice round 3m.

Good to see a tick up already today on the back of just a single 18k buy.

[barrywhit] 04/7/2016 08:22

Well that's where most of Richard Sneller's increase came from Oryx fund decreasing.....

[barrywhit] 01/7/2016 17:27

A few more large trades showing end of day.......

[barrywhit] 01/7/2016 12:09

rivaldo,

I don't know where he picked them up from, not been that amount of trading shown in the last few weeks...I can only see 690k of sells since his last RNS (that's not taking into account any buys) so he has picked up the rest from a large holder.........imo

[rivaldo] 01/7/2016 12:07

It's even better than that - his last holdings RNS showed him with 6.77m shares, so he's added another 2.15m in the last 3 weeks....

Can't blame him given the potential upside.

[barrywhit] 01/7/2016 11:53

Well our Richard Sneller is still very confident.........another 1.78million purchased...

[leedslad001] 30/6/2016 12:28

Nice to see 2 way trading

[barrywhit] 30/6/2016 12:22

Good to see the increase in share price given they are reasonably small trades......

[rivaldo] 30/6/2016 08:07

Keen buying yesterday afternoon, with around 150,000 shares bought at around 18p, including two 50k's.

Looking good chart-wise too. The potential for CD4 alone is huge, but then there's also Allersys and the malaria test, all in for virtually free on top of the highly profitable core business.