RE:RE:RE:RE:RE:RE: You will be pleased to know.I agree with 007dave – a prediction of the share price is depending on
- Production start
- Sales
FDA / EUA is only for the Clinical Diagnostics which is not the number 1 target for LXG but with the current COVID-19 they have started the process.
When production started and sales goes well the NASDAQ up listing is a normal follow up
I can just provide ones again the figures I wrote some month ago:
LexaGene costs are so low; 90% less than everyone else - believe sales will be quite strong.”
Based on figures in their Company Presentation and what the production cost for the capsule are you need to see the potential they could have:
| Veterinary Diagnostics | $5.4B USD by 2024 |
| Food Safety | $24.4B USD by 2025 |
| Clinical Diagnostics | $12.9B USD by 2025 |
| Water Safety Testing | $3.5B USD by 2019 |
| Sample Prep Market | $9.3B USD by 2025 |
| PCR Market | $7B USD by 2026 |
| Genotyping Market | $11.8B USD |
| Total Market | $ 74.3B USD |
The margin seems to be amazing when they really have so low costs. I do not have the actual numbers but looking at those forecasts will show how big the potential is when they go to commercialization and can get a good market share. From the above numbers one can calculate the net revenue when the margin is as high as they predict:
| Type | cost | sold | Margin $ | Margin % | Tot Rev 2025 | Net Rev 2025 |
| Vet | 5 | 40 | 35 | 88 | 5.4B | 4.725B |
| Food | 5 | 20 | 15 | 75 | 24.4B | 18.3B |
| Med | 5 | 60 | 55 | 92 | 12.9B | 11.825B |
| Others | 5 | 20 | 15 | 75 | 31.6B | 23.7B |
| Total | | | | | 74.3B | 58.55B |
Note that the above is NOT what LXG will achieve, this shows the total market share based on production cost of LXG / predicted selling prices of cartouche and does not include the revenue for the LXG Analyzer – but it seems this is the much lower part and the real cash cow is the selling of the cartouches.
Normally a share has a P.E. of 10 to 20 times, means the share price can be 10 to 20 times the revenue. The marketcap for all the testing companies is between USD 500 and 1000 Billion by 2025 – how much LXG can be achieve is the main question.
I am not so interested were we stand in Aug/Sept, my investment was done on the basis to go to production and to grap as much as possible of the market share. USD 5.00 is in my opinion a very small price in the long run