Anteo Diagnostics - Point of Care Company 1 - Timeline

With a lot of developments currently being undertaken by Anteo Diagnostics with a large number of testing companies I thought I would focus this post on what I consider one of the most significant value drivers for the company in 2014 and beyond.

 

The first time this company was discussed in more detail in a Quarterly activities report was on the 30th April 2013 - See below :

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So in March 2013 Anteo Diagnostics entered a paid 12 month collaboration project with a major Global Healthcare company ( That is yet to be formally named )

Through much research and dot joining I am of the firm opinion that this company is Philips Healthcare and the development is for their Point of Care device Magnotech of which the first targeted assay is Troponin - the detection of high levels in the bloodstream is an indication of damage to the heart muscle and that some degree of myocardial infarction has occurred. The big cost to Emergency rooms worldwide is the misdiagnosis of heart attacks and the congestion and costs this bottleneck has on global healthcare.

The feasibility study with "POC1" was officially announced to the market on the 19th June 2013 - See below :

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This news was interesting as the fact that "POC Company 1" wanted to remain unnamed was an indication to myself that some very important work was being undertaken in what is a very fast growing segment of healthcare - Point of Care Diagnostics and more importantly the large Troponin assay market - Success of this device means being able to take laboratory standard testing results to the patient - Think doctors surgery's or even one in every Ambulance globally.

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This equipment that was sent to Anteo's labs in Brisbane is worth in excess of $500,000 - This shows me a commitment from "POC 1" for Anteo to help them achieve a commercial product. This 12 month time frame ends 13th March 2014.

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The statement above that is most encouraging for me is that Mixngo has resolved "POC 1" issues with colloidal stability and consistency of reading the amount of analyte in the blood sample" - There was some obvious grunt work to be done and ADO has achieved this and is now able to work on their sweet spot and that is increasing sensitivity.

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This deal has already been stated in a video presentation by CEO Dr Geoff Cumming as being worth "In excess of $10m pa" - When trying to assess the value of the company you need to understand the magnitude of what this deal and the deal with BBI/ALERE will do for the company.

BBI/ALERE & Philips to sign will see close to $30m pa in royalties and see a market cap in my opinion of $400m plus and a share price around 50 cents - Over a 200% premium to current share price.

February in my opinion will see the finalizing of this project for Anteo and negotiations leading to a commercial agreement.

These companies don't adopt new technologies quickly or easily but when they do you are in a device for many years to come that has the potential to access multi billion dollar markets.

At current share price of 16 cents Anteo's market cap is $130m with $7.5m cash in the bank and approaching cash flow positive in the second half of 2014.

The business is highly scalable and these first big couple of potential company making deals will be the start of a big snowball.

 

 

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