What are your thoughts on the Abacus Diagnostica share issue? I would be particularly interested in hearing your views on the valuation level and the outlook.
“Abacus is a spin-off company founded in 2004 from the Department of Biotechnology at the University of Turku. Currently, we sell and manufacture nine different CE-approved products and, in addition, a coronavirus test with an exceptional permit granted by Fimea. Over the years, we have raised a total of approximately 8.5 million euros in external funding. We have delivered more than 150 GenomEra systems and expect production and sales to multiply this year following strong growth driven by the coronavirus. We have achieved positive cash flow, and the design work for the new Ge2+ system, which will revolutionize diagnostics, is already well advanced.”
How does one invest in this offering? I have an account with Nordnet, can I participate through it?
I read the prospectus, and I might give this company a try, at least it seems like an OK thing.
Very interesting case. The timing is also very current, as demand significantly exceeds production capacity, making it justified to seek more capital. Sounds promising; I’m planning to join in, personally as my first unlisted investment. My only slight concern is how growth will be maintained after COVID? And as the revenue projections seem to assume, growth won’t be dramatic (possibly even negative) in the coming years. Of course, a quick exit could be very possible, especially when looking through the minority shareholder terms, which require commitment to support an exit. The health tech sector is very “sexy” these days, so there could be an excellent return opportunity here… a new Revenio, but from a different field?
A very interesting company, good find, will look into it in more detail tomorrow! Corona seems to have only added one extra test to their selection, meaning there’s a future even after it. Who knows, maybe we’ll find this company listed on the stock exchange someday.
@Jemmari
In the offering of an unlisted company, shares are not recorded in a book-entry/share savings account; instead, owners are only recorded in the trade register. There is no regular place for trading (and thus for price determination) then, unless it is listed on Privanet someday.
Yeah, I was already wondering why I couldn’t find any announcement about the offering anywhere.
So, unlisted offerings seem to work differently, thanks @tonimerkki for the info, let’s look into this case.
In biotechnology, as in other investments, there are inherent risks, but Abacus seemed interesting and promising enough that I put a few pennies into the offering.
There was an article about Abacus Diagnostics in this morning’s Turun Sanomat. Unfortunately, the news is behind a paywall, but here’s the gist of it:
Abacus’s growth rate is rapid. Last year, the company’s turnover was 670,000 euros, and this year it will increase tenfold. We sell tests and equipment for approximately one million euros per month.
At the time of the share offering, there was still no certainty about a second wave either. It’s starting to look like a pretty good investment, as there are no signs of the coronavirus disappearing. The validation of the new combination test also seems to have progressed well. With the same test, it is possible to determine whether it is influenza A or B, RSV, or COVID-19.
Thanks for the info! Unfortunately, that article was indeed behind a paywall, so I can’t read it in more detail. However, the company’s sales growth rate is good + it’s generally great that we have this kind of expertise in Finland! Hopefully, the sales growth will remain sustainable, meaning the company will gain a good foothold in this market even after the pandemic.
I got an email via Invesdor from today’s press release, so I’ll bring it up here as well:
A couple of highlights from the news:
Currently, identifying a variant virus by sequencing can take up to two weeks.
According to CEO Sundberg, Abacus’s new variant virus test is the first rapid PCR test to differentiate coronavirus variants, so there will certainly be demand for the test.
“The combined annual revenue of the company formed by the merger was approximately 12 million euros and operating profit was 3.2 million euros in 2020. The 2021 revenue is forecast to be 14 million euros, and operating profit is expected to grow from last year. The company employs approximately 90 professionals.”
I tried to find where the value of my investment in the merged Uniogen is located. Any ideas? The tax return apparently showed the entire company’s value at 11 million.
Apparently, the value here has also plummeted since the Invesdor days, as is typical, and the money made during the COVID era has just disappeared somewhere.