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Direct marketing of biotags and global expansion mark BlueChiip’s cheery entry into FY24

  • In News
  • September 8, 2023
  • Alinda Gupta
Direct marketing of biotags and global expansion mark BlueChiip’s cheery entry into FY24

A blue chip denotes the cream of the crop—the most put-together, high-quality company or share. So one can only imagine that naming your company Bluechiip would entail high expectations. And high pressure.

Two years ago, advanced sampling management company Bluechiip (ASX: BCT) announced that it would directly market its Bluechiip-Enabled products to end-users, concentrating especially on the key North American market. Secondly, it decided to expand its US sales team from two people in FY22 to six in FY23 and, at the same time, it built distribution networks in Europe including in the UK, France, Spain and Czech Republic.

It implemented these strategies, thus helping enhance its sales and repeat orders. In over a year, its quarterly repeat revenue has risen 25-fold, from $5,000 in March 2022 to $130,000 quarter-to-date in September 2023. 

Though the growth might make it look like FY23 was a profitable year for Bluechiip, the reality was quite different. In FY23, the Company saw its revenue decline from $927.2k in FY22 to $915k. Its cash in hand fell from $2.7 million to $1.7 million. Bluechiip’s total loss also declined from $3.05 million to $5.04 million as it spent big on new developments, getting about $1 million in customer receipts.

To make matters more concerning, in the FY23 annual report, Bluechiip’s Directors acknowledged that these circumstances were far from ideal, casting “doubt” on the Group’s ability to keep operating as usual. They expressed concern that Bluechiip might have trouble selling its assets and paying off its debts in the regular course of business. In fact, the Company’s ability to manage its debts depends on successfully raising capital in the coming year.

While this got shareholders in a tizzy, the new updates offered relief, receiving a warm reception (a whopping 15.4% share price uptick). Seeing repeat orders rise and client base grow has infused optimism, which the Company is carrying into FY24.

Bluechiip is largely counting on the uniqueness of its technology to win contracts. The Company is a biological sample management company with its focus on sample quality. Say for instance a medical professional collects blood, eggs or even stem cells (the foundation of revolutionary biotech). These specimens are sensitive to a multitude of environmental factors. Biochiip makes special tracking tags—departing from traditional methods, like handwritten labels—that can be embedded into containers like vials or bags. These tags don’t have electronics (thus not influencing the sample in any way) and can work in very cold or tough conditions without getting smudged or breaking. They help keep track of the containers and can even tell you the temperature of what’s inside. This makes it easier to work with samples and ensure they are of good quality.

Bluechiip’s tracking solution is now installed in a big pharma laboratory in Europe, an Ivy League research institution and several leading biopharma groups. Further big pharma groups in the USA are expected to sign with Bluechiip by the end of 2023. Most importantly, Bluechiip’s 14 existing customers, which have installed its technology in 26 of their laboratories, have 75 more labs, thus indicating more potential expansions.

Bluechiip is also close to completing a two-year license and development agreement with FujiFilm Irvine Scientific. And it is confident that a long-term supply agreement is expected to be concluded shortly.

Notably, Bluechiip is engaged with 20 leading big pharma companies globally. While one is an existing client, the other 19 seem to be greatly interested. Many have already received proposals and quotes and some are currently evaluating Bluechiip’s technology.

There’s a lot on the line in FY24, putting the Company’s bluechiip-ness to the test.

  • About
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Alinda Gupta
Alinda is a Business Reporter for The Sentiment
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  • About
  • Latest Posts
Alinda Gupta
Alinda is a Business Reporter for The Sentiment
Latest posts by Alinda Gupta (see all)
  • Ovanti’s iSentric signs contracts worth $14.4m with Malaysian commercial bank - June 27, 2024
  • Baby Bunting fights back from retail downturn with 5-year strategy, includes Gen-Z focus and self-funded growth - June 27, 2024
  • CLEO meets with US FDA to develop strategy for ovarian cancer test launch - June 26, 2024

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  • About
  • Latest Posts
Alinda Gupta
Alinda is a Business Reporter for The Sentiment
Latest posts by Alinda Gupta (see all)
  • Ovanti’s iSentric signs contracts worth $14.4m with Malaysian commercial bank - June 27, 2024
  • Baby Bunting fights back from retail downturn with 5-year strategy, includes Gen-Z focus and self-funded growth - June 27, 2024
  • CLEO meets with US FDA to develop strategy for ovarian cancer test launch - June 26, 2024
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