IDT - IDT Australia

[Walter Moos]

This company looks poked. Down from a $1.80 to $1.12 in the last 2 months. Revenues and profits have declined over three successive years and management have no plan to arrest the decline.

 

[wbooo]

Biotech idt-results released 51% increase eps

IDT released their results 3pm today, (supposed to be released tommorrow) profits and eps up 51%,revenue up, 6.5%. These numbers on the surface may look odd, how can a company grow profit by such a degree, when sales have hardly moved?.


The answer is straight forward, 4 years ago over 90% of this companies revenue was generated through generic drugs which required a high spend on raw materials and consumables, as we all know most of this industry is now off shore, in the last 4 years IDT has been replacing this income stream with a new one. It now generates most of its revenue through specialised drugs such as cancer treatment drugs, and by providing clinical trials for new drugs research ( a fee for service income stream) additionally to the manufacture of such drugs once they have received FDA approval. This new income stream carries a much lower cost for raw materials and consumables. Thus the huge increase in profits is due to a large reduction over the last 4 years in raw materials and consumables costs. This company now has a new set of profit margins going forward, it has in essence while staying in the same industry, recognised and moved successfully into a niche within that industry, developing a service and products much more profitable than before.

The development and manufacture of these requires a specialist team of highly educated and skilled staff and special containment facilities, IDT uses CMAX (a clinical trial facility in Melboune). This creates high barriers to entry regards competition. Additionally IDT has a strong reputation with the FDA and is therefore the service provider of choice for companies like Pfizer, one of its largest clients.

Anyway don't want to bore you too much, this company is covered by about 2 analysts, and neither of them pay much attention to it (though I think thats about to change), so it has gone largely unnoticed by the investment industry, this accounts for its low share price. It has been the ugly duckling for the last 4 years but is now changing into a swan.

The management team are remarkable, many other companies in the generic drugs industry in Australia have simply dissapeared, so full respect to DR Blackman (CEO and founder) for his successful restructure and tenacity.

Yes I am the kind of boring person who follows the same company for four years, but this strategy has served me well, my most successful investment to date being Cochlear (also started investing in this appx 3 years ago). I like to invest in companies that not only go up but stay up, atleast for most of their lifetime.

Anyone out there interested in this style of investing, I'd love to hear from you.

 

[moneymajix]

wbooo


Just a not ot say thank you for your post.

You reminded me about this stock.


$2.12

Ann.
14 Aug 2007 15:01 ! Preliminary Final Report

 

[wbooo]

So Walter Moos, your analysys of this company is based purely on the historic performance of its share price, not on its financial history, management expereince, product line, industry reputation, client base, stability in earnings growth, industry sector, current excellent financial results, surely not even you can overlook a 51% increase in eps.

The current and future profit margins of this company will be different to its historic ones, simply because it has changed its business from a manufacturer of generic drugs to a fee for service business involved in specialist research and development of new drugs, and producing finished products.

According to your Analysis strategy companies like Mcdonalds (was $12 in 2004 now $50) are worth nothing, what about Aristocrat Leisure? were you one of those who sold out at $1 or bought in, well looking at your strategy you would have been a seller.

 

[wbooo]

Looks like IDTs stock price is starting its ascent, its only a matter of time now before IDTs price starts to reflect its profits.

I have spoken with a few analysts about this stock in the last few days and one in particular who works for an International Larger broker/Investment Bank, will be writing an in depth report on it for her clients (for the last few years she has only written summaries of its performance) so this is good news.

 

[wbooo]

Does anyone have any ideas why 90,000 units in IDT were traded in the first half hour of today at higher than usual prices? This is a lot of volume for such a small stock and there have been no announcements.

 

[ADIOZ]

IDT Aus

Have you seen the latest half year result? I think it is terrible.

Not terrible because profit is down 192% and the industry is still experiencing difficult conditions, as blamed by the management, but because the employee benefits expense is still high relative to revenue. Revenue is only down 40% but profit is down more substantially because management is not cutting employee benefits expense quick enough.

At the moment the cash flow is negative and the company only has $4000 in cash. The difficulty experienced by the industry is still unknown in the duration as well as in the depth. Therefore, if the company is not conserving cash, it will run into debt and problem.

My suggestion is to cut management remuneration, which I believe currently at 30% of the total employee benefits expense.

Any thought?

 

[McLovin]

Didn't these guys become redundant whent they lost that contract with Pfizer a few years ago. Pfizer even gave them several million dollars worth of equipment, iirc. Looking at the BS, if they stopped trading and wound up the company they'd probably create shareholder value! The again, there biggest asset is a piece of redundant PP&E given to them, so you have to wonder if it's really worth it's BV.

 

[ADIOZ]

Didn't these guys become redundant whent they lost that contract with Pfizer a few years ago. Pfizer even gave them several million dollars worth of equipment, iirc. Looking at the BS, if they stopped trading and wound up the company they'd probably create shareholder value! The again, there biggest asset is a piece of redundant PP&E given to them, so you have to wonder if it's really worth it's BV.

Correct me if I am wrong. I think the value of the asset transferred from Pfizer does not show up in IDT's asset. It is still Pfizer's even though it is developed and located in IDT's compound. Pfizer is only letting IDT to make use of the asset and share the profit generated by it.

Liquidating it is not an option as the asset is worth more under IDT than other companies, if there is other who would be willing to buy. IDT already has a good name attached to it.

However, the management does not want to be cut. I think there are too many directors for such a small company. Let's vote for less management remuneration or less directors.

 

[piggybank]

 

[greggles]

IDT Australia Limited has entered into a manufacturing agreement with Cann Group Limited to provide manufacturing support in relation to medicinal cannabis‐based product formulations intended for supply to patients in Australia and overseas.

Today's announcement did not provide much additional information but the IDT share price closed up 21.79% to 9.5c. It now looks primed to break out of its 12 month long trading range between 7c and 10c.

I'm sure additional details concerning this agreement will follow in the near future.

 

[greggles]

IDT Australia continuing to make share price gains on increased optimism following the release of its FY18 financial results which reported an operating profit in the six months to 30 June 2018.

IDT up another 14.29% today to 16c.

 

[greggles]

Breakout for IDT today after announcing that the Department of Health ‐ Office of Drug Control has granted the Company a Medicinal Cannabis Manufacturing Licence under the Narcotic Drugs Act 1967.

The Licence authorises IDT to undertake the following activities in specified areas of the Company's licenced premises:

a) the manufacture of extracts and tinctures of cannabis and cannabis resin (Drug) in accordance with one or more manufacture permits;
b) activities relating to such manufacture, including but not limited to the following (as applicable):

i. the supply of the Drug;
ii. the packaging, transport, storage, possession and control of the Drug;
iii. disposal or destruction of the Drug.
​

Really good news for IDT. The Medicinal Cannabis Manufacturing License will position the company well in a rapidly growing market. With existing pharmaceutical manufacturing facilities, this will allow them to develop and produce new cannabis related products.

IDT has surged an impressive 62.96% to 22c today on volume of around 3.5 million shares.

 

[Ann]

....and here is an article about it...

IDT Australia granted licence to manufacture medicinal cannabis products

Almost 12 months after lodging its application with the national Office of Drug Control, pharmaceutical manufacturing company IDT Australia (ASX: IDT) has been granted a licence to manufacture medicinal cannabis.

The licence authorises IDT to manufacture extracts and tinctures of cannabis and cannabis resin (drug) in accordance with one or more manufacturing permits.

IDT is also permitted to supply the drug; package, transport, store, own and control the drug; and dispose or destroy the drug.

The company’s manufacturing and packaging facilities already have in place a Good Manufacturing Practices (GMP) licence issued by the Therapeutic Goods Administration.

The facilities also have the requisite Poisons Licensure for handling certain Schedule 8 and 9 drugs. More...

 

[finicky]

Topped up today @ 16c, s.p up 50% today

Funny games previous announcements - directors granting themselves swags of options, an 'investment bank' borrowing shares.

Not a recco, IDT hasn't made money for many years but interesting position to be in with regards the CV19 CCP plague. More onshoring of pharmaceutical manufacturing maybe?

Also producing differentiated Cannibidiol (CBD) formulations.
No debt, FDA approved facility.

Business Update – COVID‐19 - today
_____________________________________________________________
IDT Australia Limited (ASX: IDT) provides the following update in regards to the COVID‐19pandemic and the Company’s current and future business operations.

At the request of the Australian Government, IDT has been asked to assist with certain COVID‐19 response activities. To this end IDT’s GMP pharmaceutical manufacturing facilities and laboratory remain fully operational and business operations continue without disruption.

Since the emergence of COVID‐19, IDT has implemented a range of measures designed to protect the health and safety of our employees whilst ensuring continuity of business operations. As the COVID‐19 situation evolves IDT will continue to respond in accordance with current best practice.

IDT 10 YEAR QTRLY

 

[Tumbarumba]

The posts above summarises the positives, plus the recent on market “insider” buying of 260k, at 16c, may indicate something is brewing. The government may need to activate manufacturing of Covid19 treatments as indicated in recent Ann. That would give the SP a lift as would any Cannabis related Ann.

 

[finicky]

Every week I think I should be accumulating a few more of this speculative punt. Odd to be calling it that now when in the distant past it was a conservative investible business.

Active Pharmaceutical Ingredients (APIs) - they used to make these and then work out a pathway to finished dosage form for big American pharmas. Is The West to continue to rely on the Chinese Commie Party for stuff like this? We can't even make our own gowns, masks and ventilators. Twiggy Forrest says the CCP is our friend.

Then there's IDT's recent foray into differentiated Cannibidiol products and a parallel alliance with an asx listed pot grower (sorry forgotten which one). Looks like the board and management might be getting set for virtually free with unlisted options - typical - months ago I sent them a blistering email as to why they weren't putting any skin in the game at even 10c a share. How could they expect me to buy shares when they had no stake and weren't buying even at that cheap price? Were they just going to issue themselves riskless free options when things were looking up? - I opined (in the ferocious email). No reply. Yep, that's what they planned to do alright.

Quite some positive volume there in the month of April
IDT Decade Mthly

 

[finicky]

IDT @ 0.175

Strong move today for IDT, closed on its high, up over 12% and with notable volume for this thinly traded stock.

I noticed an AFR article talking about picks of managers that contribute to the philanthropic Future Generation fund and Sandon Capital's pick was IDT, fwiw. Sandon Capital (SNC) is IDT's second biggest investor. SNC is ASX listed and in its recent tangible assets update it said this of IDT:

"One of the investments in the portfolio that is a potential beneficiary of the COVID-19 pandemic is IDT Australia Ltd (IDT), a pharmaceutical manufacturing company. The company’s services range from early stage active pharmaceutical ingredient (commonly known as APIs) development through to finished drug formulation, clinical trial research and scaled commercial manufacturing for global distribution. Funds managed by Sandon Capital are together the second largest IDT shareholder, owning
approximately 8%.

Over the last 20 years, much of Australia’s API manufacturing has been shifted offshore to lower cost jurisdictions such as China and India. Today, Australia imports 90% of its medicines and is at the end of a very long supply chain, making us particularly vulnerable to supply chain disruptions. The COVID-19 pandemic has highlighted offshoring as a key risk to the sourcing of many critical APIs in both Australia and the US (where many of Australia’s finished pharmaceutical products are sourced from).

In its recent update to the ASX, IDT noted that its existing contracts remain unimpacted by the COVID-19 pandemic. The company also stated that it has been asked by the Australian Government to assist with certain COVID-19 response activities. Whilst the company has been loss making and consuming cash for some time, its recent foray into manufacturing medicinal cannabis has taken it to the cusp of profitability.

We believe the government should take steps to reduce risk in Australia’s pharmaceutical supply chain and bring the manufacturing of APIs back onshore. IDT’s underutilised facilities and TGA/FDA accreditation place it in a strategically important position to contribute to increasing the resilience and capacity of our domestic pharmaceutical industry."

IDT 12 months Daily

 

[finicky]

More work for IDT through its cannabis growing partner Cann Group (CAN)

26 May 2020
Cann Group Limited executes export supply agreements with European and
UK partners for medicinal cannabis formulated oils and dried flower products
_____________________________________________________________
26 May 2020 - IDT Australia Limited (ASX: IDT) provides the following market update: Cann
Group Limited (ASX: CAN) has today announced that it has executed two new export supply
agreements with European and UK partners for the supply of a range of medicinal cannabis
formulated oil and dried flower products for sale in Germany, The United Kingdom and other
European Union markets. These products are to be manufactured by IDT.

“Cann’s newly executed export agreements are great news for IDT.” said IDT Australia Limited
CEO Dr David Sparling. “Expanded export channels allow us to scale-up our manufacturing
and supply operations even further and the parties can leverage off IDT’s experience
exporting cGMP pharmaceutical products to Europe and our dealings with the European
regulators.”
Further details of these export supply agreements are provided in Cann Group’s
announcement

 

[finicky]