There is quite a lot of new information in the half-yearly...

There is quite a lot of new information in the half-yearly Pharma, and I was waiting to see how many had picked up on some of the details and put them forward for discussion. I didn't want posting facts on the forum to induce downramping, as it has in the past, while the SP is currently benefiting from its absence.

For the record, the charts indicate business as usual, with revenue continuing to grow at a good pace, while the normalised income to expense ratio continues to indicate the likelihood of the overall operations becoming profitable around the end of 2020, which is a little later than the Company has suggested.



What I found far more interesting are the details of a well-considered two-year strategic plan, although I think we could do without the ‘Path to Profitability 2020’ slogan. It reeks too much of political promises.

The presentation component of the report is very informative and is clearly formatted for use beyond just as an appendix to the half-yearly.

This is the first time I have seen in print the definite intention to separate the biotech and consumer health businesses. Some effort at least is being placed into building the midkine portfolio into a package to attract a partner for this purpose. Even a report on the 2018 MK Symposium is now available on the website.

I thought it interesting to note that part of improved operational efficiencies will be an inventory and accounting management system with multi-currency capability. This fits with the projected global expansion beyond the current Aus, NZ, Japan and US channels and into China, Europe (QVC in Germany) and various Asian countries, with several specifically named.

The global distribution plan includes establishing local bulk manufacturing in China, a European manufacturing and logistics partnership and distribution partner, and opening up of pan-Asian e-commerce. CPNP filing for import into Europe is shown as an existing activity.

I was surprised that the achievement of regulatory approval for China was not included specifically in the list of upcoming newsflow. The contract with Fukangren for this purpose allowed 12 months from May 2018 before it commenced wholesale purchase for distribution there.

A pity an updated Top 20 listing did not accompany the report. It would have made interesting reading.

T7