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2005, a pivotal year for Axis-Shield, with strong growth and profitability

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wan - Mon, 19 Dec 05 :

The Count...I do have limits to my patience.

Alf...I have given consideration (and asked the questions) regarding the ASD and Abbott relationship, and of course there are risks, but the management, who have given it great consideration, think the benefits far out way the risks. We all know how big a player Abbott are, and it is perhaps then notable that they have publicly acknowledged that Axis-shield are their preferred sub-contractor, and you cannot ignore the fact that Axis-Shield will also become increasingly important to Abbott, not that it represents huge risk to their global business, but nonetheless ASD are becoming strategically important to Abbott. Furthermore Axis-Shield's management have already demonstrated that they can turn Abbott’s terms/agreements down when they do not represent good business, they did initially with the Afinion agreement, and from memory, there was similar negotiations regarding the latest Architect agreement. So it is not all one way traffic, and furthermore there looks to be further agreements in the pipeline with other manufacturers, which will strengthen ASD hand and counter some of the balance in revenues going forwards ie Anti-CCP and Holo-TC is targeted at Axsym ‘initially’, but they look set to be made available, subject to agreements, on other ‘select’ high through put systems.

Regards, wan


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