Originally Posted by
drcjp
Hi Snoopy
sure, my post is only my opinion. But I think A2 really IS a biotech as they make their earnings off substantial IP surrounding A2 casein. Milk is the current avenue. Kinda like Manuka honey etc. Started with eating it and now....
When I said creams, I meant cream in your coffee. My bad.:mellow: ATM's not classed as a biotech by the NZX because again IMO, the NZX is immature, ineffectual and does not have any idea what biotech looks like. My experience with biotech is international which is another world indeed.
A2 protein can have many uses, just like A1. A1 casein is a body building supplement and used to facilitate tooth mineralisation.
Casein and its derivatives can assist gel formation in wound healing, an important property being exploited by CodaTherapeutics as part of its current programme.
Deriving from the above is WHY A2 will be a buyout, imo. From a biotech pov, its not what its selling now - that is literally the financial basis for purchase only, ie. capital turnover - its what the IP can give you into the future. I can see why you would only think its IP derived revenue, but any board worth its salt drives for pricing basis on total revenue, ie. a premium on untapped IP.
It's entirely possible to make a cream or skin ointment out of protein btw. Gut cells are epithelial in origin like skin. Granted differential effects must be carefully determined eg. strep throat bug in mouth gives bloody sore throat, but same bug on skin causes necrotising faciatis.
I realise I have an entirely different view on the company than most, but that's what makes investing fun :)