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Yet more superb research Muck, cheers.
My best takeaway is just towards the end of the piece. " . . . . Abingdon Health's ambition is for the new design to become the "gold standard of lateral flow housings," Currivan added, and to eventually replace the plastic designs on the market.
Currivan noted that since Abingdon Health not only makes its own kits but manufactures them for others, these innovations could have market-wide ramifications as others adopt them. . . . ".
And that market is immense.
Finally, there is a link in the article to this interesting 2022 piece, which explains something I’d not even thought about.
https://www.cambridge-design.com/blog/how-to-reduce-the-carbon-footprint-and-plastic-waste-of-lfts/
Currently LFT’s have a lot of plastic. Eco-Flo is seeking to address that.
But on the flip, enabling someone to test at home rather than travel to a GP etc has a positive environmental benefit in itself. As the article says;
“It’s also worth considering the positive environmental impact of a user-administered test on the health system. Conducting a test at home can eliminate the need for an individual to visit a test site, GP’s surgery, or hospital (assuming the clinical performance of the lateral flow test is adequate). Based on estimates from the Sustainable Healthcare Coalition, one lateral flow test has around 5% of the carbon footprint of a single GP appointment and produces a similarly low percentage of non-degradable (plastic) waste.
And that’s before we consider travel. We estimate one lateral flow test has the same carbon footprint as driving 350 metres in an average UK car. So, if you’re driving yourself to a test site or GP surgery some distance away, at-home lateral flow tests compare even more favorably.”
Part 2
“ Liam Currivan, head of sales and marketing at Abingdon Health, said this week that the catalyst for Abingdon's cooperation with Morrama was simple: the company wanted to reduce the amount of plastic waste created by lateral flow tests which was highlighted during the pandemic. "It was off the back of that reality," remarked Currivan. Morrama had similar reasons for designing its Eco-Flo prototype.
"They saw a problem and wanted to fix it," he said. As such, the partnership was a natural fit.
Currivan said the first cassettes are on track to reach customers by September with work ongoing, and that the company is taking an iterative approach. "There are some exciting and interesting projects that we're working on with this particular cassette, but it will be offered as a standard product to our customer service base," Currivan confirmed.
There are also efforts to further reduce the amount of plastic in each kit, he said. While the cassette can be replaced by a biodegradable housing, the test strip itself is made of a nitrocellulose membrane, and there are other non-biodegradable components inside each test kit, such as the foil pouch or pipettes.
"The first stage is the cassette but, in theory, anything that is lateral flow and has a plastic housing can be molded with this material and produced at scale," he said. "It gives you sort of insight into how we're thinking and approaching this particular product." Abingdon Health's ambition is for the new design to become the "gold standard of lateral flow housings," Currivan added, and to eventually replace the plastic designs on the market.
Currivan noted that since Abingdon Health not only makes its own kits but manufactures them for others, these innovations could have market-wide ramifications as others adopt them. Companies that partner with Abingdon Health as a contract service provider will also be offered to have their tests made using the new sustainable design. The first kits manufactured in the new format will most likely be its own, he said. Abingdon Health also noted that it does not expect a material change in cost for tests made with these alternative materials.”
Note, the piece does talk about two other companies doing something similar (in different ways), but I don’t think either nearly ad advanced as us.
Part 1
“ NEW YORK – While the COVID-19 pandemic was a boon to manufacturers of lateral flow and at-home diagnostic tests, it also cast a shadow in the form of the plastic waste generated by these assays.
In April 2022, for example, the innovation company Cambridge Design Partnership estimated that the UK alone had burned through 2 billion lateral flow tests during the pandemic. The production of each test, the company said, created about 61 grams of carbon dioxide, roughly half of which was accounted for by its plastic housing and packaging materials.
Estimates vary, but each plastic lateral flow test generates on average about 10 to 12 grams of plastic waste. To reduce the environmental impact caused by conventional lateral flow tests, several companies and institutions have been working to develop sustainable test platforms.
Last September, for example, Abingdon Health, a York, UK-based lateral flow test manufacturer, partnered with Morrama, an industrial design consultancy in London, to create plastic-free lateral flow tests. In 2022, Morrama had introduced the concept of a sustainable lateral flow test kit design. With Abingdon Health’s technical input, they collaboratively designed Eco-Flo, which is produced using recyclable cellulose pulp, claiming it would degrade within a month in a landfill. As part of the deal, Abingdon Health and Morrama invested in a new company, called Eco-Flo Innovations, that is focused on creating sustainable product designs for the lateral flow market. The IP around the design was assigned to Eco-Flo Innovations.
At the time of the agreement, the companies pledged to make their first plastic-free, biodegradable cassettes available to customers within a year, or by September 2024, noting the new cassettes would reduce CO2 emissions by 80 percent compared to single-use plastic and would reduce the amount of plastic used in its test by 62 percent overall. ”
A detailed an interesting piece published Friday by 360dx, which is I think the most highly regarded media outlet in the dx industry space, about the move towards more sustainable LFT’s. I’m hoping everyone can read this (ie not behind a paywall) but in case you can’t, I’ll post (in two parts) what it says about ABDX separately.
https://www.360dx.com/business-news/test-developers-using-cellulose-gelatin-chewing-gum-make-sustainable-lateral-flow
Of note for me is
The messaging about Eco-Flo has increased in recent weeks, and I suspect we will hear something concrete on it shortly.
In the piece, Liam Currivan says the first cassettes are on track to reach customers by September. Great! For that to happen, it’s reasonable to think all design and testing must have either already been completed, or close to it.
Liam notes that there won’t be much of a cost differential.
Hi Muck, of course, that old chestnut . . . 'economies of scale'.
It's looking promising.
Morning Apre.
You’d hope! Remember also that Yates has said our margins improve as we put more manufacturing volume through the business. See here at about 1.48 in
https://www.youtube.com/watch?v=aHh2Kuw-vzA
So it would seem that increasing Salistick sales won’t just improve top line revenue, but margins as well.
Top sleuthing Muck. Thank you.
All that perhaps backs up Bell's (confident?) assertion about a 'material' increase in revenue . . . he has a full view of the scope of the operation. And my layman's view is that long before the products hit the shelves as far afield as Norway, Israel, Malta etc, the had to be ordered form the manufacturer . . . and paid for.
It’s a “medical device” under the regulations, and requires FDA approval before it can be sold in the US. We know they started engaging with the FDA by at least November 2021 by filing a FDA Q submission, which is explained here
https://www.abingdonhealth.com/lateral-flow-development-fda-qsubmission-processed-explained/
I suspect that as part of that process the FDA May have told Salignostics to do further trials before submitting a full application, particularly as this will be the first ever saliva pregnancy test and so there’s no pre existing market equivalent.
But whatever, you’d hope that here, nearly 3 years later, approval can’t be that far away.
Does it need FDA approval for sale in USA it's not a drug ????.
Another one, this time through Farmasiet which is Norway’s largest online pharmacy. Different packaging, different but exactly the same product. Which we make.
https://www.farmasiet.no/catalog/intim-og-underliv/graviditet-og-egglosning/addeira-salistick-spytt-graviditetstest,5106089?experiments=ai_search&searchQuery=
Just another little one from me.
I think some get confused and think Salistick is just in Superdrug, Tesco, Boots (U.K. under own brand), and Amazon. It’s not.
It’s launched in Israel and is on the shelves and online through its largest pharmacy retailer, Superpharm, which has over 290 stores.
It’s offered by Addeira in Sweden through Apoteket AB, a state owned retailer 400 stores and online, with Apoteket Hjärtat, a Swedish private retailer with a rapidly growing online business and nearly 400 pharmacies, and with Kronans Apotek, Swedens third largest retailer with 300 stores and online. And now we know they are at least offering it in Norway through Boots, and their latest LinkedIn post shows they will shortly be opening up the Danish market.
And to be honest, all this only tells part of the current distribution story. There are plenty of other retailers selling it.
The point, of course, is again to say that Addeira do not make the tests - they are just the supplier. We make, and get paid to make, part of every single test sold no matter where it’s sold, and it’s being sold far more widely than I think a lot of people think.
https://www.apoteket.se/produkt/addeira-gravtest-1-st-ask-1565701/
https://www.kronansapotek.se/addeira-saliv-graviditetstest/p/797762/
https://www.apotekhjartat.se/produkt/addeira-salistick-graviditetstest-saliv-1st/
In fact, Boots operates across a lot more territories than the ones I mentioned!
Seems to me our Boots relationship could potentially yield a hell of a lot more value than I thought.
https://www.boots-uk.com/about-boots-uk/company-information/walgreens-boots-alliance/global-presence/
Did a bit of bit of digging and (at least according to Wikipedia!) apart from the U.K., Boots operate internationally in Ireland, Italy, Holland, Norway, Malta, Thailand and Indonesia.
I dug because I came across this today - https://www.boots.no/addeira-salistick-graviditetstest-1pk-940753
As you will see, it’s a link to a listing on the Norwegian Boots domain for the Addeira branded version of Salistick. For those that don’t know, Addeira have an agreement to distribute Salistick under their own brand in the Nordic region (just like we do in the U.K. and Ireland.)
It’s really interesting for us because;
1. Addeira are just a distributor and don’t make the test - we do, and they get it from us.
2. Addeira seem to have secured Boots as a major retail partner in Norway, just like we have in the U.K. (albeit under the Boots brand).
3. All this means wider levels of distribution for a product we make
4 If Boots are now offering it in U.K. and Nordic territories, it’s reasonable to hope they’ll do the same in all other territories in which they operate (eventually)
5. I’ve said before that Boots are wholly owned by Walgreens, the largest pharmacy chain in the US. If and when Salistick gets FDA approval, one might hope it will hit Walgreen shelves.
6. The link says it’s a “new” item (Nyhet in Norwegian!), so it seems like a recent development. Certainly I’ve not come across it before, and I dig almost daily!
7. It is a bit strange that Boots are selling the test in Norway under the Addeira brand, rather than their own. Maybe that’s the next step?
Slowly but surely Salistick is advancing market penetration, and as the manufacturer (at least for part of each test), that can only benefit us. Who knows, soon it could be global, and that would mean a lot of benefit!
@Apre - as you intimate, it all comes down to what Yates sees as “material”. I’m certainly expecting north of £2.9m for the period, but am hoping for nearer £4.5m alongside cost control. There is just nothing coming out of the company that gives me any cause for concern. If there is a frustration, and I’m certain it must equally frustrate ABDX and developers, is the slow regulatory approval pace. That’s why Ivdeology was a shrewd purchase, and in that respect it’s always worth remembering the sellers sold it for 100% paper at prevailing prices, so they must have confidence in us too.
Wind
Apre is just a sad belligerent person and not invested in either company
Well, ok but I am not underwater here nor the other stock we share, ridicule away if it makes you happier.
Yes Wynbore . . . I know . . . we know . . . we all know . . . you have told us the same thing over and over again, ad nauseam, on multiple boards, for the last four years or so . . .
Just one of the reasons why I have you on my 'ridicule only' list.
Apre, the chart already indicates this has a better chance of going up than going down.
I agree small caps are not the best advocates for TA, but I have found Charts very useful to time entry and exit once I have identified a stock that seems to have growth potential. each to his own
Agreed, at the moment, the TU is the main event on the horizon.
If Mr Bell's allusion to "material" (I think that was the word) increase in revenue transpires to be true, then IMO the BOD will have delivered a good result and will deserve due credit. The SP should also reflect this. If, and yes this is wishful thinking, it turns out that when he said material he was being conservative, then game on. Anyone taking too long to look under the bonnet is likely to be run over . . .
As for TA, I do not dismiss it in some circumstances, in some shares. But with ABDX in its current state I think that news, creating volume, will move the dial and the TA will merely retrospectively reflect that movement. Unless, and it is AIM after all, . . . . news reaches others before it reaches PI's. Then the graph will change before the RNS hits. That said, ABDX run a pretty tight ship, not too leaky at all. I hope that continues.
Not long now.
(I mean to wait, not my position . . .)
I’m tentatively hoping the same Apre. If we do, I think it will relate to either Eco-Flo or potentially the fifth FOFH design freeze.
Whatever, the TU will be the most interesting thing. I’m seeing nothing to say we’re not remaining on track, and tbh I’d hope we’d see an uptick in interest as the TU approaches. Sadly, if that happens I think it will owe more to TA than any real understanding of our fundamentals, but I suppose even that would invite more to look under the bonnet.
Ultimately I’m hoping the TU will be a catalyst.
Hi Muck, thanks for your continued sterling efforts on the research front and your astute analysis. I can't understand why ABDX have not yet offered you their Comms Director position . . .
As I recall, last year's TU was early July. Mid June now . . . so just a couple of weeks away. I wonder if ABDX will throw in a juicy snippet of their own before TU Day . . .
Last one - a post from Ivdeology about being a U.K. Responsible perso. Apparently they have 489 products registered with theMRHAand more joining weekly.
For AVCT investors on here, I noted that the Launch DX MD liked the post!
https://www.linkedin.com/posts/ivdeology-ltd_role-of-the-uk-responsible-person-and-the-activity-7207032517424525313-dbN1?utm_source=share&utm_medium=member_desktop
We’re still recruiting. Buyer, Project Coordinator, Customer Experience Adviser, Marketing Manager. Whether these are replacements or not I don’t know.
https://www.google.com/search?q=abingdon+health+jobs&ie=UTF-8&oe=UTF-8&hl=en-gb&client=safari&ibp=htl;jobs&htidocid=UP56j9g3BrVnH_loAAAAAA%3D%3D&sa=X&ved=2ahUKEwiRr4yjvtmGAxWOQEEAHSb5CQoQkd0GegQIJBAB#fpstate=tldetail&htivrt=jobs&htiq=abingdon+health+jobs&htidocid=UP56j9g3BrVnH_loAAAAAA%3D%3D
Nina Garrett presented at the Merck workshop on the crossover between molecular and LFT. Notable that this time the Senzo CEO (who rarely reacts to anything), as well as the VC backer of Senzo and Drummond Scientific (a US LFT manufacturer) all reacted to a subsequent LinkedIn post. As I’ve said previously, I reckon the FOFH tests are based on Senzo tech, and wouldn’t be surprised if Drummond will be manufacturing in the US.
Liam Currivan reacted to a post from a company called Dyador, only set up last week as a spin out from Bristol Uni but already shortlisted for an academic prize. Equally, their CEO just started liking ABDX posts. They’re apparently “Revolutionising Bacterial Identification” - which is a huge potential market given AMR concerns. Wouldn’t be surprised at all if we’re involved. https://dyador.com/
https://www.linkedin.com/posts/irillishak_rscemergingtech-dyador-diagnostics-activity-7203746127689437185-sf9e?utm_source=share&utm_medium=member_desktop
Like I say, just snippets.
Yates and Stuart Angell are at the Medtech summit at the moment. A couple of Linkedin posts here for info;
https://www.linkedin.com/posts/activity-7206588716625113089-HfCz?utm_source=share&utm_medium=member_desktop - highlights improvements in FDA approval process and confirms we are helping customers through the process
And here's one on about sustainable solutions (see also Yates comment on it)
https://www.linkedin.com/posts/stuartangellivd_as-always-a-wonderful-and-thought-provoking-activity-7206598740487356416-Ypqw?utm_source=share&utm_medium=member_desktop