I am bemused and disappointed like everyone else. The only explanation I can think of is that they see the possibility of competition after 2013 because this is when the rights to the TB antigens expire. Of course, the In-Tube IP expires much later (2023?) and although it seems very valuable (the standard way of taking blood is into a tube), possibly competitors could circumvent it (say with a customized point-of-care type of test, the In-Tube method is more suited to lab-based testing). At the AGM, I remember AR saying repeatedly �the larger we become, the more likely we are to face competition�, although I guess this deal was in the pipeline at that time. As I understand it the patent for the basic Quantiferon technology is about to expire or has expired in some countries already. So the value of the company lies mainly with the brand, the In-Tube patent and things in development. Certainly, the basic technology is easy for others to replicate because its just antigens mixed with whole blood, then spun and subjected to an IFN gamma ELISA. It doesn�t seem a very transparent deal and confusing to nonfinancial people like myself. Does anyone know how they would appoint an independent expert? Hopefully, if it is a bargain price as we think, there will be a superior offer.
CST Price at posting:
$3.47 Sentiment: Hold Disclosure: Held
