Spartacus - It looks like with the new Pipeline menu option on the website the company may be looking to give some insight into what they’re developing and when it will come to market.
The K9 - ACV is listed under "Immuno Therapy" in the Veterinarian section, which means it has to be the new cancer vaccine for dogs. From what I read these vaccines use the body’s existing immune system to attack the cancer. Real cutting edge stuff.
CT - Agree the Analytica burette seems to have stalled, but it's only a very small part of the overall picture on the human healthcare side.
With the recent capital raising they would have around $3M cash in the bank. That should give enough working capital to invest in both Medivet and the human side of the business.
It would be fair to say that one year ago there wasn’t the same commitment to the human healthcare side there is now (e.g. they were looking to sell Clements), but things are different now. With the change at the top in February last year there is a renewed focus on this side.
The offer document associated with the recent capital raising states they are looking to grow the human healthcare side organically and make strategic acquisitions. At the AGM in November Darryl Ellis and Bruce Hiscox spoke of the human healthcare side and the opportunities there. They even talked about their BMDi brand, which I didn’t even know still existed until then.
The human side of the business isn’t as sexy as the Medivet side and doesn’t get the same headlines, but it is profitable and there is substantial growth opportunity. They have invested in sales staff and the $2.9M revenue in the September 4C report is a clear indication this side of the business is now growing again. The $100K profit for FY14 is on the back of the human healthcare side of the business. In this context and with it contributing 75% of company revenues it doesn’t make sense to offload it.
MLA Price at posting:
6.6¢ Sentiment: Buy Disclosure: Held
