Chilbear,

Thanks for providing the link to the presentation; IMO the following six points should be of interest to current and potential shareholders -

1. Existing paramagnetic market potential for CGNH is $1 billion with Thermo Fisher Scientific, Life Technologies and Merck owning the bulk of the market and another 27 companies selling beads in the space. In Dr G's opinion CGNH could capture 20%-30% of this market, which translates into a potential annual revenue stream of $200-300 million with a profit margin approaching those of branded pharmaceutical drugs.
2. Merck failed to meet product specifications for paramagnetic beads using their proprietary encapsulation process, which IMO explains the delay for the commercial launch by Merck and offers significant leverage to CGNH in their dealings with Merck and the potential success for a CGNH sales team.
3. CGNH Sales Team will focus on University research labs and smaller IVD companies which represent 50% of the paramagnetic market potential without violating Merck's licensed territory rights.
4. A modified 510K filing will be required should a manufacturer decide to replace the dark beads currently used with CGNH's SAVA beads. Dr. G stated the FDA would grant such a clearance within 2-4 weeks of submission of the filing.
5. The two Material Transfer Agreements remain active with one company actively pursuing polymer encapsulation of CGNH's beads with their own proprietary process (hopefully IMO this company is either Thermo Fisher or Dynal) and the other company an end user (hopefully IMO Siemens, we can conclude this is not Abbott due to Dr G's comment that CGNH is filling a Purchase Order for beads placed by Abbott) having placed the project on hold until certain internal issues are resolved. IMO if Siemens is this end user the internal issue is very likely to be their desire/need to learn the results of CGNH's head to head study with their proprietary hospital lab based analyzer.
6. CGNH has asserted a leadership role in commercializing the beads due to Merck's delay of launch and failure to establish their own proprietary branded beads. IMO this is good news for CGNH as Merck has signalled they are willing to sell CGNH's beads to their existing customer base, which provides these Customers and CGNH imediate direct access to one another should the Merck Agreement be terminated. Dr. G emphasized the Merck Agreement can be terminated within 30 days for failure to perform by Merck (IMO the agreement will also provide Merck with a cure period of some length of time should CGNH give them Notice).

IMO if CGNH announces positive results from the head to head study of the POC analyzer, the use of the SAVA beads will have been confirmed to the major manufacturers of IVD analyzers that use paramagnetic beads. With that confirmation we will witness all top tier IVD manufacturers joining Abbott and the undisclosed MTA end user manufacturer in assessing the SAVA beads in their IVD analyzers. IMO such an action will dramatically impact CGNH's commercial prospects and share price.

Ante