PEB has been providing CMS with tests as part of, what has turned out to be, a 5 year validation and approval process. Whether PEB stumps up the royalties to CDY on the basis of usage or payment received is not clear at all. As far a I know PEB has not had anything from CMS in the way of payment as yet. Considering that the total number of tests carried out annually are in the region of 50% CMS I think the sigh of relief coming from Dunedin on obtaining approval, and at least some of the payments owing, will be audible in Australia.
PEBs goal in 2013 was to have 100 million (where have I seen that before) in revenue in 5 years. This would presumably have been providing CDY with a handy 3m a year and CDY would be nicely in profit by now.
As it became more apparent that this was not about to happen as planned I think may have something to do with the focus shifting to Evolis and the rapid distribution thereof.
IMHO
CDY Price at posting:
30.5¢ Sentiment: Buy Disclosure: Held
