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CogState Announces Restructuring
15 / 09 / 2005
In recognition of accelerating growth in revenues, CogState Ltd (ASX:CGS) announces today that they have decided to implement the following important realignments:
1. CogState will focus on its clinical technology core business; selling clinical IT software tests to pharmaceutical, biotechnology and food company customers for use in clinical trials to quantify the effect of drugs on human subjects and patients. This is currently the company's largest customer base, comprising in excess of 75% of FY2005
revenues of more than $1m.
2. CogState will seek to out-license it's drug development assets (all future work on these products will be geared to maximizing their asset values to facilitate such deals), and will not seek to in-license any new drug development projects.
3. CogState will expand operations in the US and UK, opening an office in Connecticut and expanding offices in the UK.
4. CogState will continue to build medium term revenue growth through continued development of three other market segments; sports concussion return-to-play testing purchased by sporting organizations (through a renewed deal in the US with Schutt
Sports and direct sales in the UK), fitness to operate testing purchased by corporations in the work safety market, and direct-to-consumer testing purchased by individuals wishing to evaluate their cognitive function (to detect early Alzheimer's Disease, or the effect of drugs or diseases on brain function).
5. CogState will continue efforts to find and acquire new information technology software products and companies, following on from it's recently announced deal to license the assets of a Montreal, Canada based clinical IT company developing voice acoustics software for use in clinical trials.
"This strategy simplifies our business model - build on what is working and working well, sell more product, expand the markets into which this product can be sold, and find complementary new companies or products which can be sold to the same customers, and build a cash flow positive business" said Dr. Peter A. Bick, CEO of CogState.
"This strategy also removes CogState from the biotech' sector and puts it firmly within the healthcare information technology sector for comparable listed companies with products on the market. Our challenges ahead are therefore ones of distribution, product support and margin rather than the intangibles and cash demands attendant upon drug development.
For more information, please contact Dr Peter Bick on 03 9664 1300.
1. CogState will focus on its clinical technology core business; selling clinical IT software tests to pharmaceutical, biotechnology and food company customers for use in clinical trials to quantify the effect of drugs on human subjects and patients. This is currently the company's largest customer base, comprising in excess of 75% of FY2005
revenues of more than $1m.
2. CogState will seek to out-license it's drug development assets (all future work on these products will be geared to maximizing their asset values to facilitate such deals), and will not seek to in-license any new drug development projects.
3. CogState will expand operations in the US and UK, opening an office in Connecticut and expanding offices in the UK.
4. CogState will continue to build medium term revenue growth through continued development of three other market segments; sports concussion return-to-play testing purchased by sporting organizations (through a renewed deal in the US with Schutt
Sports and direct sales in the UK), fitness to operate testing purchased by corporations in the work safety market, and direct-to-consumer testing purchased by individuals wishing to evaluate their cognitive function (to detect early Alzheimer's Disease, or the effect of drugs or diseases on brain function).
5. CogState will continue efforts to find and acquire new information technology software products and companies, following on from it's recently announced deal to license the assets of a Montreal, Canada based clinical IT company developing voice acoustics software for use in clinical trials.
"This strategy simplifies our business model - build on what is working and working well, sell more product, expand the markets into which this product can be sold, and find complementary new companies or products which can be sold to the same customers, and build a cash flow positive business" said Dr. Peter A. Bick, CEO of CogState.
"This strategy also removes CogState from the biotech' sector and puts it firmly within the healthcare information technology sector for comparable listed companies with products on the market. Our challenges ahead are therefore ones of distribution, product support and margin rather than the intangibles and cash demands attendant upon drug development.
For more information, please contact Dr Peter Bick on 03 9664 1300.