Hi old friends. What follows are the highlights from today's CC that I jotted down: Feel free to chime in with yur thoughts:
-30 new molecular tests and profiles in 2013,
-70 new molecular tests since 2012,
-Essential focus-Cancer profile 20 new tests within next year, both concise and comprehensive; concise based on NextGen, and Sanger Sequencing,
-New testing technologies: developing NexGen for clinical use in next several months and Beta testing of their proprietary Support Vector Machine (SVM) technology that automates cytogenetic testing. If it works, they look at licensing technology out.
-Expect increase in clinical trial presence in the next quarter, with increasing revenue starting Q4, then acceleration of revenue in this segment as 2014 progresses
-Proprietary Test Development: Prostate test via blood plasma and urine: Diagnosis and distinguish between high grade vs low grade Ca’s. Currently in phase II of clinical trials; expect launch in first ½ of 2014.
-Test volume growth back up after 4 quarter slowdown
-Update on medicare: Seeks to change both lab and physician schedule, most important for NEO is the physician end. Co and industry has been very active in opposing and there has been strong opposition in general. A total of 10,000 letters and petitions. Letters from congress with over 100 congressional signatures were also sent to CMS. Decision is supposed to come from CMS in Nov, 2013.
-Financials-TC grandfather clause over
-Gross margins 48.2%
-Cash on hand $4.9, $7.3 of credit = $12.2 million available cash
-Paid down $672,000 in credit and still raised cash on hand
-New molecular fee schedule will increase revenue for genetics fees by 10% starting Oct.1st
-CMS “Albatross” and plans: Binary decision point, plans in the event it goes through-cost cutting, otherwise, just executing the business plan.
-NexGen platform: Driver genes driven by therapeutic market and latest literature
-Revenue growth from new tests from 2013; ½ of growth in Q3 is from tests new in last 18 months.
6-8 new sales staff in 2014, including 2 new clinical trials reps expected to be hired.
Thanks AJ! Appreesh the highlights.
Love hearing the possible catalysts to eventual lift off. It's clear management is tuned in and focused on growing NEO to be a large competitor in the industry. Regardless of short-term challenges (CMS Fees) there is room to run on this one, getting slowly closer to the 100 mil a year revenue too.
its impressive......I knew these guys had what it takes to be very successful.....I really think this is a gem beyond all gems imho......pretty consistent and these people do pay attention to details.....very good management.
Two things strike me as potential miniblockbuster additions to our bottom line. First, while the co. has been touting work with big pharma in the past, nothing has really materialized. Now, Gasparini is now publicly stating that there WILL be a revenue stream moving forward and further, the revenue stream will accelerate during 2014. Second, the development of the proprietary Support Vector Machine (SVM) technology, if it works right, will be a revenue stream INDEPENDENT of the clinical work that the co. has. If this is worth it, other co.'s will pay for it as it will add significant cost savings in-house.