Anteo Diagnostics - A sticky investment : Part 1


I first became aware of Anteo Dignostics (ASX:ADO) in late 2010. I was looking for companies with potentially disruptive technologies or market opportunities with strong competitive advantages that can maintain and grow revenues regardless of economic trends/factors.

I like to look where others are not looking at the time as this is where I believe great opportunities exist. With an ever increasing aging population globally I wanted to find a company that had potential to be part of this trend and in a big way.

A company that could benefit over a 10,15 or 20 plus period of time in markets that have double digit compound growth.

After buying shares in early 2011 I visited the Anteo Diagnostics laboratories in late 2011 and met with CEO Dr Geoff Cumming for the first time.

Since then I have met many other shareholders and attended the last two AGM's.

This post will be part one of an ongoing series of posts on Anteo Diagnostics.

This first post is just to provide some basic background information on the company and what the technology Mixngo is and how it works. In future posts I will go into more detail on current deals, future potential deals and some of my thoughts around valuations on the company.

Over 2011/12 and 2013 I have researched and invested in Anteo Diagnostics and during that time the market cap of the company has been between $40-$50m or a shareprice of 5-7 cents.

At time of writing (ASX:ADO) shareprice is 11 cents and $85m MCAP



The company evolved from Bio-Layer Corporation Ltd (ASX:BLS), an Australian material science company, which was established in 1999 as privately held Polymerat and listed on the ASX through a reverse acquisition by SSH Medical (ASX:SSH) in October of 2005. The company initially worked on surface chemistry for proteomics tools and then focused its efforts on immunoassays and related applications used in diagnostics. In 2008, the Company was renamed Anteo Diagnostics, derived from the Latin word for "anticipate, prevent, precede", reflecting the company’s approach to diagnostics opportunities. Mix&Go technology has been extensively validated over many years. So far Anteo Dx has entered into commercial licences with Life Technologies, Bangs Laboratories, Merck KGaA and eBioscience.

Anteo Dx is headquartered in a state-of-the art laboratory space in the Brisbane Technology Park, Brisbane, Australia. Anteo currently employs approximately 20 people. (Company info from




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 Anteo Diagnostics have developed and licensed a patented "Molecular Glue" called MixnGo.

This "glue" can be attached to surfaces in medical diagnostic testing to achieve cheaper tests with better and faster results.

The main markets that Anteo Diagnostics are targeting are the IVD Market (in vitro diagnostics), Life Science Research and Point of Care Diagnostics (POC).

Nature of Revenues

Revenues per customer for Anteo will vary depending on customer and product types. Based on Anteo’s business model it expects an upfront licensing fee from customers. Anteo’s main source of revenue will be royalties paid on products containing Mix&Go sold by its licensees. Royalty rates vary widely by sector and are subject to “kit clauses” and other contractual agreements.

Diagnostic Testing

For those that don't know where Mixngo can be used - Think about if you have to go to the doctor to get a blood or urine test. You are getting a test to detect levels in your blood or urine. With Mixngo  these tests can be done cheaper, faster and better.



What are antibodies and antigens?

Antibodies are small proteins that circulate in the bloodstream. They are part of the immune (defence) system and are sometimes called immunoglobulins. They are made by B lymphocytes (a type of white blood cell). Antibodies attach to proteins and other chemicals in the body, which they recognise to be foreign (not normally found in the body). The foreign proteins and chemicals that antibodies attach to are called antigens.

Antibodies and infection

Antibodies help to defend us against infection. Bacteria, viruses, and other germs have antigen proteins on their surface which the immune system recognises to be foreign. So, when we have certain infections, B lymphocytes make lots of antibodies which attach to the infecting germs. This often destroys the germ, or attracts other parts of the immune system (white blood cells, etc) which come and destroy the germ.

Each antigen has a different shape, and so requires a different antibody to attach to it. For example, the antibody that is made to attach to the measles virus is different to the antibody that is made to attach to the chickenpox virus. Therefore, antibodies to measles will not be able to defend you against chickenpox.

Once we have been infected with a particular germ, the immune system 'remembers' the particular antigen on the germ, and the antibody needed to attach to it. So, if you come in contact with the same germ in the future, the B lymphocytes quickly make lots of the appropriate antibody which can block and fight off the germ before it causes infection. This is why you normally have certain infections only once, as from then on you are immune to further infection.

This is also how immunisation works. That is - you are given a small or 'killed' dose of a germ. The body makes antibodies to the antigen on its surface. So, from then on, if you come into contact with the same germ, your body quickly makes lots of antibody to attach to the germ and destroy it.





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2013 Ausbiotech Microcap Investing Presentation

I will finish this first research post on ADO with the below video of CEO Dr Geoff Cumming presenting. The main turning point for the company and for shareholders is that in the video below Dr Geoff Cumming for the first time gives an idea of the financial potential that may flow in the form of royalties from either of the two point of care companies. Geoff Cumming mentions that either deal will be worth in excess of $10m per year to Anteo Diagnostics. These deals have the potential to see a company valuation in the hundreds of millions. I will cover these in more detail in future posts.

Disclosure : The author holds shares in this company. This research is not a recommendation to buy or sell shares in this company. The author may at any time buy or sell shares without notice. Please do your own research