So after reading the updated Zacks report, I believe my origianal assumption about the beads being delayed was correct. It sounds like they havent even finilized the encapsulation process for any of the bead types.

"CardioGenics, in a February 1, 2011 press release, notes that they continue to work with Chimie in development of the beads and that Chimie is still working on refining its encapsulation process. It also indicates that these two new MTAs were pursued in an effort to accelerate commercialization (perhaps implying Chimie has not been moving as quickly as CardioGenics would like and they hope these two new deals may light a fire).

CardioGenics has not provided regular progress updates on the bead development but it is clear that commercialization of the beads is now behind where they had initially hoped it would be. Prior to this most recent news, the last we heard was that Chimie had finalized an encapsulation process around the July/August 2010 timeframe that met commercial specifications. Beads from the lot were to be sent (~September) to Chimie who would then pass them on to their customers and solicit their feedback. Assuming the feedback was positive, the expectation was that customers would begin placing orders.

Based on the current news, it is clear that customer orders have not been flowing. While the press release did not provide an update to a potential launch date, it did mention that Chimie will test a batch of CardioGenics’ beads that CardioGenics has encapsulated using its own processes. The press release implies that CardioGenics hopes to get these beads, which have been dubbed the “CardioGenics Encapsulated Beads”, launched as they wait for the Chimie-encapsulated beads to be commercialized.

We had been expecting the beads to launch by year-end 2010, which we now model during fiscal Q3 2011 (ending July 31, 2011). We note, however, that since management has not provided an update to a potential launch date or more specifics on development, that we have no reliable information to indicate when the beads could begin generating revenue."