Here's an interesting company on the verge of crossing over from development stage to growth company. ABMC just started shipping a patented, fast (3-5 min), one step drug testing kit which tests for 5 commonly abused drugs - marijuana, cocaine, PCP, opiates and amphetamines.
The test works like a home pregnancy test using a test strip on which a line will appear on the portion of the strip associated to the specific abused drug when positive.
The test has been verified as 100% accurate by American Medical Laboratories an independant laboratory in Chantilly Virginia.
Customer feedback is that the kit is preferred because it saves time (3-5 minutes instead of days), is less expensive and easier to administer than existing drug testing methods. Businesses like it because negative results dramatically reduce the number of tests which would have to be sent off to a lab. Positive results are verified by a lab.
The kit is ideal for pre-employment screening, on the job random testing, post accident testing, penal institutions, parole systems etc.
ABMC has closed several deals:
July 15 - Received 2500 unit order from Bally's fitness -20K units annual potential.
July 18 - Received order from Business Medical Services, a Columbus OH based provider of drug testing programs to businesses across the country.
July 22 - Booked first order from Broward County Florida Sheriffs Office - one of the largest in U.S. performs 4,000 drug tests per week. $2 Million annual potential!
July 26 - Received $1 million order with a Louisiana based medical facility that provides drug testing services for over 7,000 businesses in the southest U.S.
July 30 - Announced a follow-up order from Workplace Safety Solutions of Hollywood FL. Workplace Safety Solutions is one of the leading 3rd party administrators of the Florida Drug Free Workplace Program and is responsible for administering >5K tests annually.
August 20 - Signed up a new distributor -Institutional Medcal Supply (IMS) out of southern CA - a wholesaler of medical, dental, laboratory and scientific supplies and equipment to 32 adult correctional facilities in Calif.
The kits sell for between $10-$20 depending on volume. I talked to the President Stan Cipowski and he says that they will have the capacity to produce 50,000 kits per week by mid-September. He also said production costs can be as low as $1.50 / kit.
They recently attended the Prison Telemedicine convention in Nashville last week and received over 125 leads in 24 hours.
Reasons to buy ABMC:
Patented proprietary product
Repeat "razor" blade type business
Saves business and government agencies money
Drug abuse is huge problem - accurate, easily administered and fast test is tremendous weapon
Market potential - $2.2 billion drug screening market, all business & government agencies potential customer
high gross margins
other products - saliva based alcohol detection strip (in the works)
clinical testing $3.3 billion market (in the works)
Their stock is currently selling @ $6 1/8 with 6M share float. Company is about to revise their revenue projections - additional deals to be announced soon. Call ABMC @ 518-329-4490.
Comments appreciated. - Bill |
