I'm new to this company (got the idea from Hofno's list of stocks) and have some questions for the board. I see that the company is moving away from drug development to becoming a distributor and collecting royalties. Is that a viable business model? How will the company grow over time, in terms of increasing royalties for existing products and obtaining new products that will produce future royalties? How much will they be living on their laurels or adding new products?
Part, where did you see the above information concerning the ways out? I have 800K shares as well and intend to vote no. If there is a way to derail the buyout, I am in no rush to settle for .27.
Broomfield's Corgenix partners with Eli Lilly on diagnostic product
Corgenix Medical Corp., a Broomfield-based developer of diagnostic products including tests to rapidly detect deadly viruses such as Ebola, has entered into a technology transfer, licensing and development agreement with Eli Lilly and Company, regulatory filings show.
Corgenix on Wednesday filed a heavily redacted disclosure indicating that the Broomfield company agreed to develop a companion diagnostic product for Eli Lilly. Financial terms, the product and the program were not disclosed. The agreement, which was inked on Aug. 15, would be the second between Corgenix and the Indianapolis-based pharmaceutical firm. In May 2013, Corgenix announced it entered into a product development project with Eli Lilly.
At the end of last year, Corgenix launched a hepcidin testing kit, which was based off the technology developed with Eli Lilly. Deficiencies and increased concentrations of hepcidin, a peptide hormone that is a regulator of iron metabolism, can play roles in conditions such as iron overload and anemia in cancer patients, respectively.
Douglass Simpson, Corgenix's chief executive officer, said he hopes that a second successful partnership with Eli Lilly could lead to future agreements and potential of long-term revenue generation.
"When we get into a project like this, the opportunity is well into the future," he said. Simpson declined to disclose specifics of the latest agreement, citing competitive concerns for Eli Lilly. The product being developed would be a new test, Simpson said.
Eli Lilly officials could not be reached for comment Thursday afternoon.
Corgenix already has increased its local 50-person workforce to support the Eli Lilly agreement, the National Institutes of Health-backed development of a rapid test for Ebola and a 10-year contract with biotech EDP in addition to the Broomfield firm's own efforts, Simpson said.
Part, it is probably unlikely that there will be a PR by either company, as the agreement itself provides that no PR can be issued by either party without the written consent of the other. Most of the details of the agreement filed with the 8K have been redacted at the request of CONX, including the timing of completion of the feasibility study and the nature of the test kits, so it seems pretty clear that they don't want any PRs at this time.
I think this certainly indicates that Lilly has respect for CONX, as they are providing the funds to CONX to conduct the feasibility study, and I doubt that Lilly would have entered into this agreement if they didn't think that it was likely to work out. The agreement shows that the parties have specific test kits in mind and intend to develop marketable test kits if the feasibility study come out positive. In my mind it is an important step for CONX.
It is not unusual for the management of a bought-out company to stay with the new company, at least for a while. They get a nice price for their stock plus a salary from the new company, and the new company gets their expertise. So I disagree that the value of the company would be diminished.
The first partnership was for one product, a kind of feeling out for both sides. This new agreement means that the first product was a success, and now we have a real relationship. I see this as a very big deal.
This is an important step. The first agreement was for one product, a kind of feeling out by Lilly. This agreement is broader and shows that Lilly liked what they got from the first agreement,
They had well over 100 prototypes that they sent to Sierra Leone. I would think they could produce more of those very quickly if the government wants them.
The main limitation of an electronic test is that it requires electricity, which CONX's test does not. That is a big advantage for field testing in remote villages in Africa, where there is no electricity.
Good point Hofno. It seems like the Ebola test works, or else the company wouldn't have sent the prototypes to Sierra Leone, but there aren't enough cases for the rigorous trial that the FDA requires. I would think that the FDA could choose to fast-track the approval with less data if there were an emergency need.
Kingly, Ariel's post is right on. For anyone here who has a large holding (read "old timers") knows, this is a hard stock to sell, so taking advantage of a spike in volume to take a three or four-bagger profit on some shares can hardly be faulted. As the price rises, the percentage it represents of your total portfolio rises, and at some point you may have bigger percentage in one stock than is prudent. Ariel has indicated that he still has a substantial holding, so he is hardly ditching the company. We are all looking for higher prices, and I am sure that Ariel would have sold much more if he didn't believe that.
For Chuck, I always use limits and set a minimum of 5,000 shares for buying or selling this stock.
What makes you think it is the old timers who are selling? It is just as likely that it is short-term traders cutting their losses.
Critchfield on selling to the U.S. Government. He also said that they sent hundreds of tests to Sierra Leone, and I am assuming that they were all used.
Part, my understanding is that the prototypes sent to Sierra Leone were used successfully in the field. In addition, it is my understanding that the test can still be sold to the U.S. Government, even though it can't be sold commercially without FDA approval.
I get that technicals are just one tool, and I have tried to use them over the years (lots of years - I'm 71) but haven't had the time to learn them in detail. Also, I'm not convinced that detailed technical analysis is that applicable to a low volume stock. Instead I use surrogates, like: when a stock fails to go up on good news, that is a negative, or when a stock doesn't go down on what appears to be bad news, that is a positive. That's why I think we have set a new base for CONX, in that it held after the company's cautionary PR regarding the development of the Ebola test.
On the fundamentals, the Ebola test is just one aspect of the company. In the long run AtherOx, which measures oxidized LDL, may be their biggest product. I also like their focus on companion diagnostics and their collaboration with Lilly. If they get a second collaboration with Lilly, that would be big. In addition, this is a company that has a long and positive record in getting FDA approval for its products. I did sell a bit on this runup to free some cash for other investments, but I have been in the stock since 2007 and am sure that I am still one of the biggest shareholders on this board.