QGEN

Exact Sciences: Fast-Growing Molecular Diagnostic Company But Huge Risks

by

Image Source: Exact Sciences By Brian Nelson, CFA On January 9, diagnostic testing firm Exact Sciences (EXAS) issued promising preliminary guidance for its fourth quarter of 2022. The company expects fourth-quarter 2022 revenue, excluding COVID-19 testing, to advance 28% in the quarter on a year-over-year basis (considerably higher than the consensus forecast at the time), with screening revenue jumping 45% and precision oncology revenue advancing modestly, after excluding its divestiture of Oncotype DX Genomic Prostate Score test (completed in August 2022) and foreign exchange impacts. The company’s screening revenue consists of sales of its innovative Cologuard tests, which we’ll talk more about in this note, and its recently-acquired genetic testing firm PreventionGenetics, while its precision oncology division generates revenue from its … Read more

Hats Off to Powell and Mnuchin!

by

Hi everyone: — I hope you’re doing great today. It’s probably time we move past the long email chain format. During the COVID-19 crisis, I thought it would be a good idea to provide all of our latest correspondence in a stream, so you could conveniently monitor our every move (and always have previous correspondence handy). To some, it was confusing, to others absolutely necessary, but to us it was pivotal in gaining your trust.  —- We’re going to move beyond the stream format with today’s email. However, in case you missed our prior correspondence, it can be accessed here. The archives of the Best Ideas Newsletter can be accessed here, and the archives of the Dividend Growth Newsletter can be accessed here. Our … Read more

From Nano Cap to Big Cap in Biotech

by

We cover some very interesting technologies in this piece, from a nano-cap company with a call option on survival, a stroke therapy firm that may improve the lives of millions, to a big-cap genomic sequencing leader that has exposure to the development of a liquid biopsy test for cancer. By Brian Nelson, CFA NeuroMetrix May Not Survive NeuroMetrix (NURO) is a nano-cap entity, a rarity when it comes to our commenting on ideas, and it comes with some unusual risks even beyond those inherent to the healthcare/biotech space. The company has incurred accumulated losses of $191 million since inception, and while it held $6.8 million in cash at the end of 2018, it may need to raise additional capital to support … Read more

An Overview on Valuing Junior Biotech Companies — Does Clovis Fit the Bill?

by

The biotech industry remains one of the most fascinating yet perplexing industries for investors. Anecdotes of the entry-stage biotech with a home-run new therapy are often romanticized, but the reality is the vast majority of molecules fail in various stages of clinical testing.  Due to the boom-bust nature of the industry, many are wary of investing in the space, and traditional valuation metrics are not as useful due to a large number of such speculative entities being in the pre-revenue stage. With this in mind, let’s take a glimpse into our thought process when evaluating upstart biotech companies. By Alexander J. Poulos Before we dig in, we feel a word of caution is warranted. Entry-stage biotechs (IBB) inherently come with … Read more

Best in Biotech? Global Blood Therapeutics’ Promising Treatment for Sickle Cell Anemia

by

We remain impressed with the depth of research conducted over a wide host of disease states. Though a molecule may appear to hold significant promise in the pre-clinical phase, we have often witnessed the unique ability of the human body to react to various treatments. Often an unwanted side effect can torpedo a treatment, thus relegating millions of dollars of research obsolete. However, if a promising molecule is brought to market, the payoff is often well worth the effort. Our goal is to sift through the various clinical data to unearth the most promising treatments with the understanding that nothing is assured until the FDA authorizes the product for marketing in the US. We believe we have identified a promising … Read more

Can Vertex Pharmaceuticals Dominate the Race to Treat Cystic Fibrosis?

by

Tickerized for holdings in the XLV and IBB. Cystic Fibrosis is a rare disease that afflicts an estimated seventy-five thousand patients worldwide. Vertex Pharmaceuticals is the first to market with a combination treatment to treat a portion of the overall patient population. Will Vertex win the race to bring forth a triple therapy to treat the vast majority of those afflicted? By Alexander J. Poulos Cystic fibrosis (CF) is a recessive genetic disorder. The patient that is afflicted will carry two copies of the cystic fibrosis conductance regulator protein (CFTR) gene. The CFTR gene allows the body to produce the CFTR protein, whose function is to remove chloride from the cells. Patients that have CF will suffer from a “thickening” … Read more

Pharma, Biotech and How to Consider Investing In It

by

The Valuentum analyst team digs deep into recent trends in big pharma and biotech from the lofty pricing of drugs to political and competitive pressures to ETF considerations and beyond. ~10 mins. If you cannot view the podcast below, please view the transcript below or select the link here. Tickerized for holdings in the XLV and IBB. Brian Nelson, CFA Gilead’s (GILD) hepatitis C regimen, almost a hundred thousand dollars. Vertex’s (VRTX) cystic fibrosis drug — hundreds of thousands of dollars per year. Have the drug companies lost their mind? This is Brian Nelson from Valuentum Securities, and today joining me is Mr. Kris Rosemann and Mr. Chris Araos — and we are going to talk everything healthcare, biotech… Mr. … Read more

Which Mid-Stage Biotech Can Grow Into the Next Large Cap Biotech Behemoth?

by

Image Source: Steven Depolo The biotech field is on the cutting edge of scientific research. The production of new therapies often positively affects the share price of these innovative companies as long-term revenue and earnings expectations become embedded in the stock price. Let’s take a look at several mid-stage biotechs that may grow into dominant players. By Alexander J. Poulos The application of ETFs in investment strategies has gained widespread adoption during the past decade. Though the blind use of ETFs—buying a basket of stocks at any price—comes with myriad risks, there are certain advantages in that some ETFs offer desired exposure to certain themes or sectors. When it comes to biotech, the most liquid biotech ETF is the iShares Nasdaq … Read more

Stock Market Outlook for 2021

by

By Valuentum Analysts February 8, 2021 2020 was one for the history books. We covered our thoughts and reflections on the past year in our “2020 Won’t Soon Be Forgotten” article (link here), and now we are looking towards the future. Global health authorities should be able to bring an end to the ongoing coronavirus (‘COVID-19’) pandemic sooner than many had expected as several vaccines have already been improved for emergency use and several others appear increasingly likely to get approved. Global vaccine distribution activities are currently underway, and this should allow the world to slowly return to pre-pandemic activities. Before then, immense stimulus measures launched primarily in developed nations should support global economic activities until the public health crisis … Read more

Dividend Increases/Decreases for the Week of May 9

by

Below we provide a list of firms that raised their dividends during the week ending May 9. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week                          Annaly Capital Management, Inc. PFD SER G (NLY.PR.G): now $0.5518 per share quarterly dividend, was $0.5476. Annaly Capital Management, Inc. PFD STK I 6.75% (NLY.PR.I): now $0.6034 per share quarterly dividend, was $0.5987. Artesian Resources Corporation (ARTNB): now $0.3074 per share quarterly dividend, was $0.3014. Ashland (ASH): now $0.415 per share quarterly dividend, was $0.405. Azelis Group NV (AZLGF): now EUR 0.23 per share … Read more