Despite 2013 being one of the best years for IPO's in recent memory, shares of Liposcience (NASDAQ:LPDX), which went public at $9, quickly rose to $11 only to plummet to $4 by the end of the year.
The company faced challenges on many different fronts in 2013. After a profitable 2012, the company lost $12.5 million in 2013. While test volume increased 6% for the year, reimbursement per test declined at a greater pace of 10%, creating 200 basis points of gross margin compression. In addition, the company's operating expenses rose nearly $10 million in 2013, while sales fell more than $2 million. Despite these displeasing figures, there are reasons for optimism.
When I first wrote on Liposcience...
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