Hemosol / ARC
The ARC news you guys are talking about has been out for months. The original agreement that HML had with the ARC was that the ARC would provide 500,000 litres of Plasma to HML. However, the supply was contingent on HML doing specific fractionation and supplying the value components back to the ARC. In effect, HML was basically a paid agent. Despite it all sounding good...this is not necessarilly what HML wanted. In my opinion, HML is taking a far smarter and strategic path.
Because of the simple fact that the Cascade process Yields and purtiy are so superior to the Cohn process, HML will be able to pay a PREMIUM to Plasma suppliers if they have to, they have a total competitive advantage. Supply will no be a problem.
More importantly, when they source their own plasma and arent handcuffed by an "agency" deal like the ARC had suggested, they can turn around and make the big $$ by reselling the various valuable components that are in such high demand all over the world as opposed to simply taking a fixed cut.
Because of the signficant yield /purity advantage, they will have pricing power on the fractionated products and will be in a very enviable position.
You talk to the industry players, they realize the magnitude of whats going on here despite the fact that the capital markets are still penalizing HML and PLI. Ultimately , the value will win out for patient investors despite the real ugliness of manipulation we're seeing now.
I still maintain we are very close to , if not at a LONG TERM bottom on this stock.