yup, ENZ is getting $61M+ for the settlement against LIFE. given the fact that there are two other pending suits, the company may be able to collect additional settlement payments, but ENZ needs to ramp up the operation. Molecular testing is one of the fastest market in medical industry and yet, it 's not profitable. Look at MYGN financials as comparison...
The thing is, BRCA tests are NOT same - it depends on how many mutations that the labs check during the test. Finding these mutations such as '816delGT, 1135insA, 1675delA, 3347delAG' are the keys to the business.
Wrong, it's operating cash flow is about $150M and it's free cash flow is about $700M.
As a result, the number of shares decreased in 4Q as the company bought shares back.
Higher Revenue & GP YoY while its SG&A increased.
Wonder how this happened? In 4Q, Rent-A-Center acquired about 35 locations (from competitors) and the cost associated with the acquisition (set up, POS integration, severances, etc) drove its SG&A higher that are one time charges.
Currently, RCII is trading at Book Value while it's pumping $350M in EBITDA. Also, it's depreciation/amort schedule is aggressive- $700M in $1Bn inventory per year, i.e. its inventory may be worth much more than what balance sheet says.
I think RCII is at the price range where private equities may think 'very attractive':
CMS believes that whole gene sequencing is an overkill in cancer testing but it does make sense economically. Currently, the market test a single gene at a time - which costs much more to run a few genes than whole gene sequencing.
What CMS doesn't know is that there are many clinical trials going for phase III in 2014/2015 that are tied into gene sequencing like BRCA1, BRCA2. So, as more clinical trials get approved, CMS has no option but to increase the rates.
If CMS doesn't increase the rate, labs will start stop offering gene tests, and patients will get chemotherapy when they are not effective to certain cancers. It's like giving patient a set of medicines that are not fully effective. With gene testing, oncologists will know exactly what drug therapy works on each patient, i.e. personal medicine.
Again, gene testing (or molecular) is the new way to find a way to treat cancer patients. and this is why FDA announced that they would put cancer drugs on fast track to get approved.
Some people may wonder why their medicine doesn't work - it's because their genes get mutated as medication goes into the body. Human genes get mutated from many internal/external factor like food, smoking, inheritance. The mutation itself is not serious until it triggers a gene to be on cell growth mode without stopping.
I think the whole gene sequencing is a way to find the best option to patients to have their personalized medicines. If interested, google 'personalized medicine', 'tumor profiling'.
CMS posted the rate of 81211, 81214 to be $1438 lowered from $2900. it's a big drop, but there is a reason behind it. CMS thinks that this rate would be reasonable given the fact that they didn't understand the merit of full sequencing yet.
But, here is something people should aware. The full sequencing is something new for the cancer diagnostic market. Oncologists still use flow, fish tests over molecular due to the fact they want to know 1) whether a patient has cancer or not, 2) how fast the cancer is growing. Molecular testing is to identify exactly what mutation created the cancer growth. Pharmaceuticals are putting new cancer drugs on the market in 2014/2015 based on the gene mutation which oncologists must run molecular testing to treat patients correctly.
BRCA (or any other gene like ALCA, EGFR, KRAS, NRAS, PIK3CA) gene testing is something that's growing rapidly. Look at FMI which specialized in gene sequencing (30x sales!) or ILMN (the company manufacturing the machine to run whole sequencing, $500k per machine) trading at 10x sales.
Once CMS understands the importance of gene testing to prevent medical expense in long run, they will increase the rate. One example, with gene testing, oncologists will know whether chemo works or not on each patient. Imagine that a patient has been treated in chemo when it didn't help him or her at all - lawsuits on doctors, and MYGN (and other molecular testing lab) will help them not to get into that.
My bet is that big medical lab would consider buying them out in 2014.
trading at 4.5x ebitda, this company is as cheap as cooper tire which went through a legal battle.
as the economy sees some light at the end of the tunnel, capital investments are coming which companies like JBL gets the upswing.