This is a little bit of a stretch but bear with me. One for fans of #BVXP, #HZD, #ABCAM and perhaps even Phil Fisher.
First, keep in mind these words from the #BVXP Bioventix FY18 report:
Set them against this from #FAB Fusion Antibodies' HY18 report today:
With FY17 results, Fusion was cut in half by guiding the disappearance of a fair whack of revenue. HY18 today shows it. They today guide to "modest" 18-19 growth.
Along with that revenue warning, news that a key customer collaboration agreement may not be renewed.
Results today have a new agreement with the customer as signed.
Further, this seems to have come out separately as well :
finance.yahoo.com/news/fusion-an…
They floated to do a big physical expansion of their labs and ramp up business. The former at least, has recently been achieved under budget.
It's Phil Fisher's kind of entry point: expansion happening during a period of turbulence.
Remember Abcam's failed bid for #HZD (CRISPR, rather than humanised antibodies)
Valueact continue to increase their stake. Sooner rather than later, that gets sold.
The failed bid validates #HZD's IP, their revenue further validates it and guides towards a much higher price.
None of this is present at #FAB (apart from turbulence) but bearing in mind the point from Bioventix at the start - you wouldn't necessarily expect it to be. This is what IP based long-term royalty businesses usually look like at this stage.
It's also what failures look like.
It's £13M. Their IP has produced decent, growing revenues very recently. They've got sunk costs in R&D, labs. They've got rare and specialised staff. They're picking themselves up.
I did say this was a stretch.
But for £13M, as a lottery ticket. I'll buy.
I've long since exited Fusion Antibodies #FAB - this just isn't going to work.
..that is, except however, if you're a director or key senior management of the company. In return for -53% HY1/19 revs & -19% FY19 FY revs: your pay increases by 22%.
Pat on the back lads.
Fusion Antibodies #FAB - possibly..
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