Simultaneous testing for multiple diseases
Pictor is a New Zealand biotechnology company which has developed a diagnostic platform that can be used for diagnosing multiple diseases, including COVID-19, from a single small blood sample. It will begin clinical trials of this patented diagnostic in USA, Europe and India in January
Pictor
is a New Zealand biotechnology company which has developed a diagnostic
platform that can be used for diagnosing multiple diseases, including
COVID-19, from a single small blood sample. It will begin clinical
trials of this patented diagnostic in USA, Europe and India in January
Pictor's multiplexed IVD assays allow multiple analyses to be tested
from a single sample. This reduces the number of tests, and the
complexity of the procedure, for users. It leads to better health
outcomes through earlier diagnosis, prevention and treatment.
As the result of a decision to enlarge and expand their business, the
Pictor board has decided to extend an offer of new shares in the company
to include new, as well as existing shareholders.
Progress to date
The company has just completed - with the assistance of an ex-McKinsey
consultant - in developing a detailed product evaluation and launch plan
for their Pictor COVID-19 antibody assay. A patent has already been
filed for this novel diagnostic assay which will be markedly more
accurate than other COVID-19 antibody tests. This test was developed by
the Pictor scientists in Pictor’s Parnell laboratory under the
leadership of Pictor’s Global IVD Director, Dr Sandeep Kumar Vashist,
one of the world’s leading experts in COVID-19 diagnostics.
Pictor is concluding contracts with two major diagnostic laboratories in
the U.S. to evaluate the assay. One is a lab chain with 18
laboratories which is intrigued by the high sensitivity, high
through-put and low-cost structure. The other chain is planning to run
100,000 antibody tests per day – potential revenue for Pictor of
$350,000 per day. Pictor expects both laboratories to become strong
reference customers. The Pictor assay will also be clinically validated
at a premier university hospital in Germany where the most severe
COVID-19 patients are treated.
Pictor has also been developing a Mycoplasma bovis test with substantial
(non-disclosed) funding from MPI, DairyNZ and Beef and Lamb. The second
milestone in the development of the assay was recently achieved with
the payment of $280,000 to Pictor. Support for the development of
Pictor’s COVID-19 assay has been through a $500,000 grant from MBIE.
The NZ Government has also provided significant funding to Pictor
through Callaghan Innovation.
The priority use of funds from this incoming share issue will be to
complete the Pictor COVID-19 antibody assay development with clinical
validation in diagnostic laboratories in Germany, USA and India
commencing in early January 2021.
The markets
Here in New Zealand the Ministry for Primary Industries has confirmed a
larger domestic market for Mycoplasma bovis testing than previously
advised. This presents a $2.4 million per year revenue for Pictor
opportunity starting in August 2021.
It is forecast that when a vaccine for COVID-19 has been successfully
introduced to the market, immunity may only last 3-4 months. To
determine whether revaccination will be required, population screening
will be necessary so that individuals who no longer have COVID-19
antibodies are identified and prioritised for vaccination. This is
markedly going to increase the demand globally for antibody testing.
For example even if the NZ population was only tested once per year –
which is likely to be inadequate – that would be 5 million tests per
year – or an estimated $17.5 million from New Zealand alone.
Share issue
The business has recently made an offer of new shares to existing
shareholders and is now extending that to new investors. The company is
seeking $2.5 million in funding to support the completion of the
development and clinical validation of its COVID-19 assay, its M. bovis
assay and other novel new products it will take to the market in 2021.
Pictor will have a hard close for the currently open round (target $2.5
million) by the close of business on Friday 6 November 2020. There are
several meetings planned with investors this coming week that give the
board confidence in setting this hard close.
These investors are both existing and potentially new shareholders. The
opportunity remains for other shareholders to subscribe for the round.
The pre-money valuation for this round has been set by the board to
$22.51 million; the share price is $1.00 per share.
Milestones
They are happy to report there have been some exciting milestones and
developments at Pictor. All of the investors they have been engaging
with were impressed by Pictor’s progress.
Pictor’s new strategy has been crafted (“Focus – Build - Transact”) and
they are currently in the process of implementing the new strategy which
has a goal of a trade sale of Pictor for at least $200 million by 2023.
This is under the leadership of diagnostic industry veteran, Dr Thomas
Schlumpberger who recently joined Pictor as CEO. Thomas is based in
San Francisco where Pictor has opened a subsidiary, Pictor, Inc. The
incumbent CEO, Howard Moore, is now COO.
With the existing grant funding, and revenue from sales of current
products in India where Pictor has a subsidiary, this funding round will
support the company as it completes product developments, and achieves
regulatory approvals to launch the new products during 2021. The Pictor
valuation is expected to increase significantly during the next 12
months with the market launches of the Pictor COVID-19 assay in New
Zealand and important global markets.
Want to know more?
An investor slide deck and a subscription agreement are both available
for intending investors. If you’re interested reply to this email and
I’ll get copies to you.
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The above investment is not an offer of financial products that
requires disclosure under the Financial Markets Conduct Act 2013 (Act)
and is available only to wholesale investors as defined by that Act. It
is intended for distribution only to selected people to whom, under the
relevant laws, it can be lawfully distributed. It cannot be distributed
in any other jurisdiction, or to any other people. It is not an offer or
solicitations in any jurisdiction in which such offers or solicitations
are not authorised, or in which the person making such offers or
solicitations are not qualified to do so, or to any person to whom it is
unlawful to make such offers or solicitations. Any representation to
the contrary would be unlawful. No action has been taken by any person
that would permit a public offering in any jurisdiction where action for
that purpose would be required.
Cheers
John Paine B.Sc., Dip BIA
TBK Capital Limited
Level 10,120 Albert Street
Auckland 1010, New Zealand
Phone +64 9 307 3257
Mobile +64 21 902 901
Email john.paine@tbkcapital.co.nz
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