For 9 mos they generated over $16m in revenue and earned over $4m, or roughly .38 eps
Companies that generate revenue from licensing will typically have "lumpy" quarters.
I suggest googling genomic mapping and junk dna. You might get a better understanding of the enormous potential GENE's IP has. Your odds of generating licensing revenue from infringers is usually greater when an industry develops not before.
Take 10 minutes and read their latest 10K or even listen to the interview gave on Sky News.
Here's my "two cents" :)
While the Brevagen test launch is huge, GENE’s core business is their patent portfolio and rapidly generating revenues.
GENE has 13.5m shs out (approx. 6m in the float). Today’s market cap April 29, 2011 (15.5m x 5.90= $91m)
Also trades on the Australian Exchange under symbol GTG.
For 9 mos ending 3/31/11 they did 16.4m in revenues versus $6.3m. On $16.4m revenues they generated net income of $4.m or (.38 eps) and have over $7m cash in the bank.
Almost 200% revenue growth with huge margins still hidden from Wall St.
Insider buying in March $24k of stock in open market at approx $3 a share
0% Institutional ownership
Genetic Technologies has "enabling technology" or the intellectual property that enables DNA testing for "junk DNA". They have patents to over 98% of the genome and are riling the biotech world. Genomic mapping is estimated to be a $100B annual business.
Call it "the search engine for the genome".
They just signed a collaboration agreement with one of the world’s largest pharmaceutical companies for a new cancer profiling product. They announced they will be launching a revolutionary breast cancer test (Brevagen).
When you look at GENE closer, they are essentially the Google of the Biotech industry, except you need to pay to search this database.
A couple years ago GENE had identified 1783 potential licensees, such as genomics companies, genetic testing firms, developers of diagnostic devices, pharmaceutical and bioinformatics companies, owners of proprietary genes and genetic researchers. It alleged that at least 475 groups had already infringed the patents.
The human genome alone has over 3 billion bases. Now take every living organism (thousands if not millions) and multiply that by billions. That is a huge database that will require a fee paid to Genetic Technologies to search.
What is that worth??
They are landing licensing deals with Fortune 500 companies because in order to create better cows, corn, drugs, disease test et al, YOU NEED to utilize "junk DNA"...and they own the patents that make better products possible.
In addition to owning key patents for junk DNA testing, they have (and are developing) tests that utilize this technology for key diseases (breast, lung, ovarian, prostate) (Oncology).
Here is quote that sums up why GENE could be valued at over $1B.
"A tiny Aussie firm has claimed rights to vast tracts of the genome and is riling the biotech world."
Not only have they claimed rights to these vast tracts of the genome, they have been successful in getting the largest companies in the world to pay them for this IP.
"the failure to recognize the implications of the non-coding DNA will go down as the biggest mistake in the history of molecular biology"
The non-coding patents owned by Genetic Technologies (GENE) consist of two distinct families relating to intron sequence analysis and genomic mapping. The patent applications, which were filed in many jurisdictions, have since resulted in issued patents being awarded in 22 countries around the world, covering all genes in all complex species.
Think of Genetic Technologies as the company selling (licensing their IP) the picks/shovels to the genetic gold miners.
If you understand genomics, this is REALLY BIG stuff.