Yet another example of an established entity pairing with ASTM. They have recently completed their commercial instrument manufacturing agreement with SeaMED (Nasdaq: SEMD) See below. Kaufmann fund, State of Michigan, Pfizer, Loyola & Duke Universities the list of these relationships goes on. Understand this is not some boiler room bio-tech company. They currently have sufficient funds to market a product that they have ready for the European market now, not years down the road. IMO the likelyhood of this Company not existing in some capacity for years to come is very small. Anyway here is a little background on SeaMED. Note that SeaMED's contracts usually run 3 to 5 years. Obviously they feel ASTM will be around at least that long.
SeaMED is a manufacturer of advanced medical instruments for medical technology companies. SeaMED was incorporated in 1976, and since 1988 has focused its business primarily on manufacturing medical instruments for medical technology companies. To assist its customers in developing and commercializing their products for manufacture by SeaMED, the Company provides a wide range of engineering services and regulatory expertise.
SeaMED's manufacturing contracts with its customers are usually exclusive contracts for a fixed period of time, generally ranging from three to five years. SeaMED negotiates each manufacturing contract independently, and each varies as to profitability. SeaMED negotiates the price of each manufactured instrument on a cost and margin formula. SeaMED's contracts with its customers generally permit annual manufacturing cost audits and price renegotiations. During the contract term, customers have broad discretion to control the volume and timing of instrument deliveries. Consequently, SeaMED's revenues with respect to each instrument may vary substantially from period to period, and an instrument that generates revenues in one quarter may not necessarily generate revenues in each quarter of a fiscal year. In addition, for a variety of reasons such as a customer's inventory levels, sales mix and timing of product launches, SeaMED's revenues for an instrument do not necessarily correspond to the customer's sales. |
