J.Morgan Healthcare Conference: Companies to Watch
We are still reviewing 2018 J.P.Morgan Healthcare presentations for inclusion in our portfolio but here are two longer term opportunities to track for milestones and growth: Accelerate Diagnostics and Denali Therapeutics.
Accelerate Diagnostics (AXDX). Accelerate is an emerging in vitro diagnostic company providing solutions for serious infections . The fully automated Accelerate Pheno diagnostic platform performs identification and antibiotic susceptibility testing (AST) of pathogens associated with serious or health care-associated pathogens including gram positive or negative infections. Accuracy is in the 96% range. The objective is to improve clinical outcomes and cost savings. with a reduction of mortality rates with for example sepsis. The Company recently achieved its CE-IVD milestone or its severe bacterial pneumonia assay that provides fast results to 54 hours faster. Market potential for pneumonia in the U.S. is estimated at 2M severe cases. Product sales are beginning to ramp with estimates of $4M Revenue for 2017. A pipeline of tests is being developed in additions to pneumonia such as urinary tract infections and into-abdominal infections.
Revenue growth objectives for 2018 are in the $25M range weighted toward 2H with an AUP of ~$200 with gross margin os of 70% in its razor/razor blade model. The first 10 months of product launch includes 337 placements of which 259 are under sign custom evaluation agreements. The total market potential is 20,000 placements with 17M microbiology tests.
Denali Therapeutics (DNLI). Denali is a discovery and development stage biopharmaceutical Company focused in neurodegenerative diseases with lead programs in Parkinson’s and Alzheimer’s Disease. The “degenogene” pathway has revealed numerous genes that when mutated cause or are a major risk factor for neurodegenerative diseases.The genetic pathway includes lysosomal function, glial biology and cellular homeostasis. Lysosomes involve the recycling and disposal of lipids and proteins in brain cells and dysfunction can be corrected. Six core programs are in development utilizing the genetic pathways and engineering brain delivery through the blood brain barrier including biomarker development. The LRRK2 lysosomal pathway Phase 1 program is a small molecule for Parkinson’s Disease.The Glial biology pre-clinical pathways involve antibodies and small molecules for Alzheimer Disease.
The Company has 20 partnerships including a new strategic collaboration with Takeda announced on 1/5/18 to develop commercial therapies for three specific therapeutic candidates for neurodegenerative diseases. The Company completed an IPO in December 2017 for $18/share raising $250M.