RE: q3I completely agree....
I think the best we can expect is another solid increase in recurring revenue from Gel sales and perhaps some further clarity and updates on the other initiatives. I think the bulk of the good news is set to come in Q4, particularly from 1402, PRDT and Tunisia. I really think that a negative reaction to anything in this report will be nothing more than a buying opportunity... there's simply too much potentially good stuff coming in the next two quarters or so.
Ironically, the recurring revenue from Gel sales is really something that has been downplayed, largely because of the huge potential of the other intiatives . While the Gel Revenue growth has been quite impressive, the actual numbers just havent been significant enough to get anyone's attention yet. I think that's going to change.
Its easy to lose sight of the fact that we are now supplying a number of very large Pharma companies through these various licensing agreements...including GLAXO most recently. As we have learned, technology adoption by these large pharma's is as slow as mollasses. Its TRULY significant that we have been able to get a number of the big guys on contract and I dont think we have even scratched the surface of their potential demand.
From what I understand, most of the diversified product sales we're doing now are for drugs in the formative and/or developmental stages. Think about this.... if we are able to grow Gel Revenue to meaningful levels primarilly on the basis of these companies R&D programs... what happens when they come up with successful drugs as a result of the process and go into production !? For that matter, what happens when they move production of existing proteins or drugs to the mimetic ligand process ?
Bottom line, revenues ramp to very significant levels. We havent seen anything significant yet in that regard. I'm betting that's going to change. In my mind this just simply solidifies another of the company's "value pillars"
The real difficulty of this whole part of the business is visibility. How does management forecast exponential sales when you dont know if or when a Pharma hits a winner drug, ESPECIALLY when these companies wrap all their R&D in shrouds of confidentiality !?
Analysts and shareholders have to extrapolate based on educated guesses and the fact that BIG PHARMA are not going thru this whole process for the good of the world... they are trying to develop winning drugs and improve on existing processes.... and the dollars are very large.