Here is an interesting January 30, 2006 press release that may have implications for BOCX:
"Bayer HealthCare, Diagnostics Division, a member of the Bayer Group (NYSE: BAY ), announced today that it has been granted licenses under key patent rights relating to free PSA and tacrolimus tests from Abbott Laboratories. Bayer intends to develop these two new tests for its ADVIA Centaur and ADVIA Centaur CP immunoassay systems immediately."
The above announcement states that Abbott has key patent rights patent relating to the free PSA test (the test is not free, it just is called a "free" PSA test because what it tests for is unattached) that they have just licensed to Bayer to use on Bayer's Centaur automated, rapid test system. What must also be true is that hospitals, and other large laboratory test centers, have not purchased (because of the high cost) one of every brand of automated, rapid test system out there on the market. I am just guessing, but hospitals, and other large test centers, may have just purchased one of those systems. So what is the above press release basically telling us as BOCX investors? Once one of the automated, rapid test systems have been purchased, the market for selling more of these may have decreased considerably. So what is the next step for companies like Abbott to generate revenue from their automated, rapid test systems? It appears that revenue can also be generated by licensing (for royalties or some other compensation) their tests, like the free PSA test, to use on other companies automated, rapid test systems that hospitals may have purchased instead of theirs. What are the implications for BOCX on the blood serum RECAF cancer detection test that Abbott got a semi-exclusive license for? Abbott is currently developing the RECAF test to use on their Architect system, and the implication is that Abbott could later license it to Bayer and other companies to use on their systems. The other companies could get those quick FDA 510k approvals on the basis that the RECAF test ran on their systems would be "substantially equivalent." to Abbott's. Of course, Abbott and BOCX would get royalties from the other companies to use the RECAF tests on other companies systems. This may be the reason why BOCX has not completed any other "semi-exclusive" licensing deals (like Abbott's) with other companies. The other companies may just be waiting to get a license to use the RECAF cancer detection test on their automated, rapid test systems, and in the process, avoid the expense of developing the test. It is a distinct possibility. kag
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