The Rayno Life Science Portfolio is up 20% and later this month we will see important earnings reports from tools and diagnostics companies. Life Science stocks are outperforming the NASDAQ and S&P in 2010.
Exact Sciences(EXAS) $8.89 was a high flier for Q3 with the stock tripling from the $3 level. Pre-clinical validation data on their third generation sDNA/FIT test for early detection and prevention of colorectal cancer is expected at the end of October. See Rodman Notes below.
GenProbe (GPRO) $47.50 up 1%, up 6% in Rayno Portfolio. Molecular Diagnostics leader in infectious disease and blood screening.Leerink Swann upgraded to outperform today due to new product catalysts such as the HPV FDA filing by year-end. The Panther System is also expected to lunch in Europe by year-end.2010 PE is 21.8 with Cash per share of $9.39. Earnings scheduled for October 28.
Immucor (BLUD) $17.20 stock has stabilized above $17 after guidance was lowered. At a PE of 15 and a leading position in automated blood screening the stock has good value with with acquisition potential. Institutions have been accumulating stock so look for holdings reported at Q3 end.
Quidel (QDEL) is trying to find a bottom in the low $12 range.We added it to the portfolio at $12.25. Earnings report on Oct 27.P/S is 2.75 with a 2010 PE of 12.25.
Next-Gen sequencing has been growing at a torrid pace (Leerink Swann reports 3X rev. growth over 3 years to $550M) and two leaders are Life Technologies (LIFE) and Illumina (ILMN). IPO’s in the hopper with S-1’s for Q4 are Complete Genomics and Pacific Biosciences. Illumina(ILMN) recently launched the HiSeq 2000 which should expand the market for sequencing technology. ILMN ($48.35) was added to the Rayno Portfolio at a price of $27.20 and earnings are on for October 26. One issue in heated discussion is the extent and timing of clinical applications of sequencing.
Seattle Genetics (SGEN) $17 soared from the $12 level at the end of September due to positive pivotal trial results from its antibody-drug conjugate therapy for relapsed and refractory Hodgkin’s Lymphoma.SGEN stock was added to the portfolio at a price of $9.50.