Edited. THE TIDE IS TURNING
Assurance AB igg/igm anti-body test kit manufactured by Jiangsu Dablood:
Potential: 10-30 million units over the balance of 2020
Net Profit per unit: $7 - $25
Potential net profit (net pre-tax earnings): $70 mil - $750 mil.
If PRED starts to execute in the next few weeks, the middle of the range is probable for calendar 2020.
Note these are my estimates based on industry analysis without management guidance. However, Dablood did indicate on LinkedIn that they expect PRED to sell 30 million units this year.
Variables involved in execution:
FACT: PRED has authorization to distribute the Assurance AB test kits in the U.S. which was previously granted by the FDA as a CLIA certified lab.
FACT: FDA is now removing unreliable test kits from this automatic approval list. PRED’s Assurance AB is not on the removed list – this is a significant positive.
EUA from FDA: FDA indicated that test kits that are already approved for sale under the original notification system can continue to distribute without the EUA. Therefore, FDA placed such medical devices on a lower priority system for review. However, FDA registration # just issued to Dablood so could be close.
FACT: Dablood – already has approval to export out of China. China’s Commerce Ministry just added Dablood to their white list for import/export - line 302 as reported by Mr. Mercedes.
FACT: Dablood’s clinical study conducted by 3 independent labs in China demonstrated superior reliability.
FACT: This anti-body test kit has the CE seal of approval for distribution throughout China and throughout Europe.
FACT: Dablood's anti-body test was approved and added to Germany’s white list on 5.18.20. This is further confirmation that this is a highly reliable anti-body test.
Given excellent reviews of the test in China and confirmed in Germany, there is every reason to believe that the National Cancer Institute will come back with a positive test for Assurance AB as well. In which case, EUA would soon follow.
With a positive review at NCI and/or EUA from FDA, sales and distribution of the Assurance AB will be huge with exponential growth. All of the questions regarding execution of this initiative will disappear overnight.
Importantly, with the country opening back up, demand is even higher for RELIABLE anti-body test kits for employees going back to work. Demand will far outweigh supply for reliable tests for the foreseeable future.
With positive developmental steps in Assurance AB, this one initiative could be worth 10-20x the current market cap of PRED.
PRED’s other assets have significant potential. To be discussed another time.
The filing of a 15c211 should have PRED uplisted within the next 1-2 months. This is a straightforward procedure for a fully reporting company with Deloitte as their auditors. With execution of Assurance AB, NASDAQ would follow.
Financial health: PRED has a demonstrated history of financing all ongoing development stage initiatives. Given the underlying value of the various assets and the potential of the current Assurance AB initiative, there is every reason to believe that PRED will be able to finance key initiatives for the foreseeable future.
Once execution of Assurance AB sales begins, the profitability will be immediate and dramatic and the capital structure of the company secure longer term. At which point development of the other assets will lead to longer term significant upside to the company and its stock price.
Conclusion: THE TIDE IS TURNING.
Disclaimer: I am long PRED stock but have every right to buy and sell in the future without further updates. No one paid me or even suggested that I write the above. This is based on my own due diligence. I am not a financial advisor so please consult with your own financial advisor before investing in this or any speculative stock.
