LabCorp NIPT Performance Data

Jun. 06, 2016 7:12 PM ETLH1 Comment
Marty Chilberg profile picture
Marty Chilberg's Blog
2.69K Followers
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Healthcare, Growth At A Reasonable Price, Tech, Growth

Contributor Since 2009

Marty Chilberg is a seasoned financial professional with over 30 years of C-Suite, board, consulting and advisory experience. He began his career as a certified public accountant (CPA). He moved to Silicon Valley in 1981 to begin his career in the software industry, working for Atari, Daisy Systems, Symantec and Visio. He took Symantec and Visio through their initial public offerings as their Chief Accounting Officer and Chief Financial Officer, respectively. The past ten years have been focused on emerging macro investing themes including Cloud and Genomic Medicines.

LabCorp ($LH) informaSeq lab results

  • More than 90,000 samples reported in first year.
  • 136,633 samples from Aug-2014 to Feb-2016.
  • Demographic mix 56% high risk/44% ave risk.
  • 35% of tests ordered did not include clinical indication.
  • 1,866 screened positive for aneuploidy.

Pdf file can be found here

Comments:

  1. The data references samples as opposed to patients, but the data in tables (i.e. Table 3) notes percentage of patients.
  2. The Ariosa preliminary S-1 noted 62% of their revenue was from LabCorp which suggests approximately 30,000 tests.
  3. informaSeq is a licensed product from Illumina ($ILMN). Initial validation demonstrated through concordance with Verifi as shown in the file.
  4. There was a substantial increase in the number of samples reported in the first year ended in Oct-2015 of 90,000 (average 7,500 per month) and the cumulative number of samples at the reporting cutoff date in Feb-2016 of 136,633. The 47,000 over about 4 months would mean an average monthly rate of about 12,000. Reasons could include OUS samples processed and unreimbursed samples to validate average risk.

Disclosure: I am/we are long ILMN.

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.