RE:RE:RE:RE:RE:RE:Citagenix Sale Announced this AM Scotchnoice wrote: I had the chance to talk directly with Dan and the CGX team about their projects and business development plans for few hours and it didn't go according to plan at all!... In 2018 they were forecasting a revenue of 46m$ for FY24! Without any revenue from ATE technology...
I totaly understand why the acquisition of CGX was important for ATE towards investors but looking at CGX as a standalone company, they failed badly!
Sure they failed w.r.t that revenue target - but also think about what it would have taken to get to $46M in annual sales. They chose not to make those investments. - focusing financing mostly for drug development needs.
As you know, not only would they have needed to considerably increase investment in the USA but that plan would have also required a full push into Europe. Instead, they added a US sales catelog/website and opportunistically went after additional sales - never spending the kind of money need to get to $46M in sales.
Staffing and infrastructure costs would have gone up considerably. Maybe an acquisition? Instead they focused back on 346 and becoming a pure-play drug developer.
Also, how far along would they have advanced ULRICH and the other CGX-XXX bone/membrane products? If they didn't push 346 forward, how much money would they have invested in the CGX products by now?
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Let's just say CITA was a good idea when there were no other ideas - but - as soon as 346 was off life support - CITA was asked to fend for itself.
That was the right approach - investors didn't want a focus on CITA - they wanted a focus on drug development.