The other side of the coin here may be that "A new broom sweeps clean". Clarient was known to have some collection issues (hence the billing hires) and may have had some malcontents in the lab who were told where the door is if they didn't like new management. Time will tell.
That hospital deal is the wild card here. The business may be huge and I have already posted that NEO may have moved to by Clarient simply because they anticipated the huge jump in volume.
Better to look at the relative percent gains for gold and for MUX. The kicker will be when gold can sustain a market price above around !400/oz as the percent profit per ounce mined for MUX will REALLY start to look good. Looking forward to THAT!
Know too that Illumina is not a clinical lab and neither will GRAIL, if I am reading the PR correctly. What I've read is that they will likely take their own brand of NexGen sequencing and pair it with their equipment to market machines that will conduct liquid biopsies. The PR states that they will be involved in TRIALS of liquid biopsy technology, meaning that they are not ready for marketing yet. Worst case scenario would be they have a superior set of machines that NEO would want in their labs.
If she does, I might pull the trigger on the next batch myself. I've been waiting for a top on NXTM, and it looks like it might still have another 10% up but then it'll be time to trade out.
That's about what I expect, Davidivy ($250-260 million). The share value will then depend on earnings, the fatter the better. One more unaccounted variable, if CMMI relents and increases reimbursement (after 2 years of cuts) even modestly, we are off to the races.
The company's value is still largely based upon their core business, which was based on analysts' views of their growth prior to two major developments. The first was an announcement that NEO had become the preferred provider for Premiere Inc., opening a market for lab testing in 3400 independent hospitals. The second was the announcement of the acquisition of Clarient from GE. It appears that in developing the deal with Premiere, NEO became aware of the need for a much larger lab infrastructure, hence the GE deal. Mgmt has been quite tight lipped about revenue projections, allowing only for a prediction of revenues based upon their old core business growth + the core business of Clarient. I suspect that growth will be much better because of the Premiere deal and Mgmt won't speculate about this until they have several quarters' worth of data on lab orders from this deal.