InvestorsHub Logo
Followers 0
Posts 458
Boards Moderated 0
Alias Born 02/06/2006

Re: None

Thursday, 02/23/2006 8:19:21 AM

Thursday, February 23, 2006 8:19:21 AM

Post# of 14825
why the company hasn't made more sales? To anywho

I see now what you exactly meant. This is indeed a good question considering that market clearance for all three rapid tests occurred in Uganda some time ago.

We have no info up to today that this has led to significant sales yet. My very personal explanation is: Calypte is not the first company to sell rapid tests in Africa (no first mover), other companies have been there earlier, at least with blood tests. So even with a superior test it takes some time to break into the established sales channels of other companies. The company has indicated earlier that they also expect rather a slow but consistent ramp up of sales numbers than an instant explosion after approval (similar to BED sales). This would be line with my speculation.

Nevertheless, there is always the opportunity that the company wins a bidding for a bigger contract which would lead to a bigger sales volume at once.

I also remember that a company called Chembio is already quite successful in Uganda.

But with all due optimism, sales numbers should start to grow soon otherwise it looks like the tests are indeed not very competitive. This would be especially disappointing with the non-blood tests. I hope we learn soon (e.g. next CC) that rapid sales have started to grow already where market clearance has happened. Besides, apart from sales numbers, the company needs more approvals in more African countries. Hope we hear more soon from that.

Hope this helps, all my opinion

Cal


Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.