Rayno Life Sciences DX and Tools Update: 2015 Q1 Winners ALR,FMI,HOLX

Diagnostic Stocks rally with NASDAQ and Small Caps –IWM Up 1.66%

Life Science Tools and Diagnostics stocks are a tad off their one year highs hit by dollar strength and disappointing revenue growth in some cases. Sequencing stocks were big winners but sold off after the JPMorgan Conference. Nonetheless the sector is attractive longer term due to advances in molecular technologies, new products and M&A. A complete report of the sector will be issued at the end of the first quarter. Here are the 2015 YTD top five winners among our focus stocks :

Abaxis (ABAX) up 11.27% YTD, up 62.5% over one year…P/S 7

Alere (ALR) up 24.5% YTD, up 28.3% over one year…P/S 1.55

Cardiovascular Systems (CSII) up 19% YTD, up 4.65% over one year…P/S 7.1

Foundation Medicine (FMI) up 112% YTD, up 13.9% over one year…P/S 22 with Roche deal

Hologic (HOLX) up 20% YTD, up 45% over one year…P/S 3.5

P/S =Price to Sales

Here are other portfolio +5% winners over one year: Exact Sciences (EXAS), Genomic Health (GHDX), Illumina (ILMN), Neogen (NEOG) and Qiagen (QGEN). However if you look at the “technicals” of some of the momentum stocks you will see a topping pattern in the chart (see EXAS, ILMN).

Compare the above results with our 2014 year-end summary where the top winners were: ABAX, EXAS, ILMN, PACB and SQNM.

We learned about two emerging clinical diagnostics companies at the JPMorgan Conference and suggest you put them on your radar screen. At some point they will be stocks to accumulate: Accelerate Diagnostics (AXDX) and Genmark (GNMK).

Life Science IPOs Slowed in Q1 2015

According to Renaissance Capital there was only one genetic testing IPO in  2015 : Invitae (NVTA) a genetic testing Company went public on 2/12/15 raising $102M and has a current market cap of $528M. AltheaDx offering personalized genetic tests for adverse drug reactions recently filed for a $60M offering but withdrew on 3/9/15. RainDance Technologies(RAIN), which offers systems for noninvasive genetic analysis filed for a $60 offering on 3/2/15. Here are IPO Pricings from Renaissance through 3/11. Most life science IPOs are in the pharma area.

 

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