One only needs to look at the list of news that Anteo has released over the last 6 months to see the progress the company is making in the commercialisation of their Nanotechnology platform technology.
Before I go into my thoughts on the recently announced Quarterly Report here is a list of news events of interest this year :
- 24th February 2015 - New Patent lodged : New Bioseparations Patent For Sample Pre-Treatment - We have since seen Anteo's Josh Soldo present at last weeks AACC meeting, with his presentation based on this patent. Of note was this comment from the Quarterly following Josh's presentation "Further, a key opinion leader in the field confirmed the urgent commercial need for a product that eliminates interference in clinical samples and offered his assistance to pursue the opportunity with Anteo"
- 10th March 2015 - ANTEO TECHNOLOGIES ENTERS EXCLUSIVE DISTRIBUTION PARTNERSHIP WITH VERITAS CORPORATION, JAPAN - Anteo signs with Veritas who have been the main distributor for Life Technologies in Japan.
- 25th March 2015 - ANTEO TECHNOLOGIES ANNOUNCES FEASABILITY STUDY WITH COOK AUSTRALIA - Anteo announces they are working with one of the largest global medical device companies - In a later interview CEO Geoff Cumming mentions there are a "handful" of projects in the pipeline with Cook
- 1st April 2015 - ANTEO TECHNOLOGIES SIGNS NEW AGREEMENT WITH LARGE GLOBAL HEALTHCARE COMPANY ‘POC1’ - Progress with the unnamed "POC1" continues to progress and scope of project gets larger.
- 7th April 2015 - LUMINEX CORPORATION ENDORSES ANTEO’S MIX&GO™ AMG ACTIVATION KIT - "The AMG Activation Kit also allows users to troubleshoot proteins that are difficult to attach to Luminex microspheres using other methods"
- 14th April 2015 - ANTEO TECHNOLOGIES BEGINS FUNDED IN VIVO RESEARCH PARTNERSHIP WITH THE UNIVERSITY OF QUEENSLAND
- 21st April 2015 - ANTEO DIAGNOSTICS FILES NEW PATENT AND REGISTERS NEW SUBSIDIARY COMPANY, ANTEO ENERGY - Big news with the first foray outside of Healthcare and into the very large battery(lithium ion) energy market.
- 6th May - New AMG Product Launch - ANTEO TECHNOLOGIES INTRODUCES NEW PRODUCT TO MARKET AMG™ Coupling Kit, 200 nm Magnetic Particles
- 26th May 2015 - ANTEO RAISES $1 MILLION FROM STRATEGIC INVESTORS TO ADVANCE ANTEO ENERGY PROJECTS
- 8th July 2015 - ANTEO ANNOUNCES A PRODUCT DEVELOPMENT AGREEMENT WITH IMRA
- 23rd July 2015 - Anteo Mix&Go™ product range to be incorporated into Sigma-Aldrich network and online catalog · Inclusion in Sigma-Aldrich range to provide broad access of Anteo products to global markets
Well I knew there was a few but didn't realise how many until I put the above together
Ok so lets move on and have a look at the Quarterly activities report :
QUARTERLY REPORT - HIGHLIGHTS
- Anteo awarded Frost & Sullivan Asia Pacific Technology Innovation Award
- An endorsement of Anteo's AMG™ Activation Kit by Luminex Systems
- Execution of a new agreement with global healthcare company, POC1, which followed an initial 18 month feasibility study in point of care testing
- Immediately after the reporting period, we also provided an update on the relationship with IMRA America, and the news that Anteo's Mix&Go range will be incorporated into the Sigma Aldrich catalogue.
- Anteo furthered its intellectual property position by filing a patent application, covering the use of the Company’s nanoglue technology in the energy sector. Along with the patent filing, a new subsidiary company, Anteo Energy Pty Ltd, was established and $1m was raised via a private placement. These funds will allow additional scientists to be hired and equipment to be purchased to further our commercial objectives in this project
- Anteo’s new AMG™ Coupling Kit, 200 nm Magnetic Particles was released during May and feedback received to date on the kit has been extremely positive. This product is gaining considerable interest, especially in the Point of Care sector.
- POC1 - "Our technical team is working on the target objectives set by our partner and is progressing ahead of schedule"
- PRODUCT DEVELOPMENT/COMMERCIAL LAUNCH - Anteo and IMRA America will work closely together during the next six months with the objective of delivering products ready for sale in Q1CY16.
- Partnership with SCIENION - "consumables for use on Scienion instruments, using Anteo’s proprietary Mix&Go™ technology. The first products targeted will be activated glass and polymer slides with the objective of delivering more accurate results and better, longer-lasting and more cost effective diagnostics. The co-development project is at scoping stage and the two parties have identified substrates of interest and are looking forward to working together."
Now I have dot pointed a few I am going to give one of the pieces of information much more attention than it got in the quarterly.
- Anteo very quietly dropped what I consider personally to be some very interesting news into the quarterly report -
"Recently we entered into an association with Qiagen, who produce a reader that is used by groups developing fluorescent or colourimetric lateral flow tests. In this partnership, Qiagen will purchase Anteo's AMG™ Coupling Kit, 200 nm Magnetic Particles, to bundle with every ESEQuant LR3 Lateral Flow Reader sold."
- QIAGEN is a provider of sample and assay technologies for molecular diagnostics, applied testing, academic and pharmaceutical research
- QIAGEN - Listed on the NYSE has a market cap of $6.5 BILLION dollars
- QIAGEN just reported half yearly net sales of $618m USD
MY THOUGHTS ON QIAGEN
Very interesting this one and how it has been announced to the market
This is very good news and I have been doing some guestimating on what this partnership may be worth.
From the QIAGEN website : QIAGEN WEBSITE LINK
"QIAGEN offers a broad range of more than 500 core products to meet the special requirements of its more than 500,000 customers worldwide."
From Anteo's announcement :
"In this partnership, Qiagen will purchase Anteo's AMG™ Coupling Kit, 200 nm Magnetic Particles, to bundle with every ESEQuant LR3 Lateral Flow Reader sold."
This is significant news for Anteo in my opinion - So Anteo's AMG 200nm Particles were only released in May of this year and the company already has a supply contract for this product with a significant company.
If you look at the Anteo website you will see the pricing structure for the AMG 200nm kits :
- So for 30 reactions the Anteo AMG kit costs $675.00
- QIAGEN have 500,000 customers and 500 core products of which the ESEQuant LR3 Lateral Flow reader would be one.
- So how much could this partnership be worth?
- We know that each device sold will have at least 1 kit with each device but that is not saying how much of the AMG product they will use and re order each year - Hopefully it is like the ink cartridges for our printers
- So for guestimation sake lets say each customer used $1000 worth of the AMG particles each year
- Now question is - Is there 1000 units sold pa , 5000 units pa or 10,000 pa ?
- $1m , $5m , or $10m in potential revenue for Anteo
Which ever way you look it has been underplayed and perhaps for another reason?
What is evident to me is that all the validation coming through across multiple products, uses and across multiple customers is now starting to show the truly disruptive and scalable potential that Anteo has and the reason why I first invested in the company.
You can wait for revenue and that's fine or you can look at the snowball staring you in the face gaining momentum month by month
So moving on to the next section of interest from the Quarterly report :
- Collaborative work has also resulted in a SUPPLY AGREEMENT for use of the AMG coupling kit 200nm in Point of Care (POC) products = Another customer from this product - Remember only released in May this year.
And then .....
"In another instance we undertook paid research with another customer who is developing a novel point of care assay. We have managed to successfully solve a problem they had been working on for two years in 3 weeks."
For a moment I just want to talk about the way I looked at Anteo when first assessing it as a potential investment - The claims were that Anteo's "disruptive" platform technology could help companies in the IVD/Life Science markets make their own products FASTER, CHEAPER & PERFORM BETTER - Big Claims I know
The thing that really has made me comfortable along the way is that the data has already been validated against the leading products, the testing has been done on different surfaces and continually shown the improvements and the value and validity of the technology.
This is not a company trying to get a blockbuster drug through Phase 1,2,3 etc
I have always looked at Anteo as a service provider - with a technology that can enable their products - Kind of like the old saying from the gold rush days - Those who made the most money where the ones selling picks and shovels not the gold diggers.
I think Anteo is king of like a mining service company but for the LIFE SCIENCE market , the IVD market , and now looking at the INVIVO market and the ENERGY market
While patience is required once an enabling technology is adopted it becomes a solid foundation for the end products success, costs and performance etc etc
So back to the quote above after I have been rambling along about how I see the technology.
"We have managed to successfully solve a problem they had been working on for two years in 3 weeks."
As an investor I think it is important to stand back and assess what this statement above really may mean for these companies and the value of Anteo's Intellectual Property
So a company working in the $5billion pa Point of Care market has had a problem for 2 YEARS and Anteo fixed it in 3 WEEKS
Think about how much potential lost revenue this problem may have cost this unnamed new company who Anteo is working with?
This is how I start to build in some of my valuations pre revenue by trying to understand :
- What are the sizes of the markets that Anteo's technology can help disrupt
- Who are the leading companies in each market
- What are the market breakdowns
- Who is the dominant player and are they gaining or losing market share
- Do the companies have their own patents expiring which will lose them competitive advantage
Once you see these potential problems being solved in short periods of time this really adds value to Anteo's IP and might not be picked up by an investor just trying to read a Quarterly financial report to get an understanding of the company. This is a technology company and you need to do some back of the napkin calculations,. I will assess and reassess the risk reward and this has only become stronger in my opinion. One only needs to read the announcements and look at a 5 year window to see that the snowball is very much starting to roll.
SIGMA ALDRICH PARTNERSHIP
This relationship is important to Anteo because:
- Sigma-Aldrich undertakes thorough testing of the products they distribute; providing further assurance to potential users
- It provides access to Anteo products to a global scientific audience
- It opens direct access to organisations with restricted supplier access, such as US government agencies and IVD users
- It builds on our growing relationship with Sigma-Aldrich
The main point I would like to expand on here is "Opens direct access to organisations with restricted supplier access, such as US GOVERNMENT agencies"
Joining some dots lets look at a link posted on Anteo's website a little while ago :
"LEIDOS (formerly SAIC): Development of a Multiplex Panel of Biomarkers to Assess Energy Metabolism in Cancer"
Link here : Anteo website resources
LEIDOS Poster below using Mixngo :
"SAIC-Frederick, Frederick National Laboratory for Cancer Research, Frederick, MD; 2Biological Testing Branch, National Cancer Institute, Frederick, MD; and 3Division of Cancer Treatment & Diagnosis, National Cancer Institute, Bethesda, MD"
So the Sigma partnership may lead to a significant partnership with the US Government through Leidos.
This blog post is already way too long - I have said some of the things I wanted to cover. Read the report yourself and you be the judge.
Would be great to see some comments from fellow readers on this thread for further discussion - Feel free to ask any questions and I will reply
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