Interpace Diagnostics (NASDAQ: IDXG) is a fully integrated commercial organization that provides clinically useful molecular diagnostic tests and pathology services for evaluating the risk of cancer by leveraging the latest technology in personalized medicine for better patient diagnosis and management. With three commercial molecular tests currently on the market, IDXG’s goal is to provide personalized medicine though molecular diagnostics and innovation to advance patient care and reduce the cost of healthcare based on rigorous science.
IDXG’s unique molecular diagnostic technology minimizes unnecessary surgeries and provides better assessment of the risk of cancer progression in patients. Currently, the Company has three commercialized molecular diagnostic assays for pancreatic and thyroid cancer. These tests are PancraGen™ for the evaluation of pancreatic cysts, and ThyGenX™ and ThyraMIR™ for the diagnosis and prognosis of thyroid cancer from thyroid nodules. Both Medicare and many third party insurance companies reimburse these tests.
IDXG is currently trading at 1.2x P/S and is far below the average 3.0x P/S of diagnostic companies with multiple commercialized tests. Investors have a unique opportunity to invest in a significantly undervalued company that estimates significant YOY growth in annual revenues.
IDXG reported revenues of $13.1 million in FY16, an increase of 39% YoY
- Revenue of $3.1 million in 4Q16, an increase of 22%
IDXG has raised $12 million in gross equity capital in 1Q17 creating balance sheet stability
- The Company also restructured over $9.3 million of secured debt to further strengthen balance sheet
IDXG’s molecular diagnostic tests are covered for approximately 200 million Americans by Medicare and leading regional health plans
- IDXG’s PancraGen, ThyGenX and ThyraMIR tests are accessible to more than 50 million Medicare patients nationwide.
- IDXG’s ThyraMIR is covered by Aetna, third largest health plan in the Unites States; providing coverage to its 46 million members nationwide
IDXG’s PancraGen testing provides an alternative option to surgery assessments for malignancy in pancreatic cysts
- Tests examine indeterminate cyst’s potential for uncontrolled cell growth and progression to malignancy
- Approximately 80% of all surgeries for potential pancreatic cysts are benign, resulting in unnecessary healthcare costs
- IDXG’s ThyGenX and ThyraMir combined biomarker and DNA testing for thyroid cancer helps to better assess the risk of thyroid nodules and accurately “Rule in” or “Rule out” the risk of progression of indeterminate cysts to malignancy
- Clinical evidence support the combined testing:
- 85% reduction in unnecessary surgeries
- 94% likelihood negative results are truly benign
- 74% likelihood positive results are malignant
- IDXG plans to “soft launch” its gastrointestinal assay for Barrett’s Esophagus a precursor to Esophageal Cancer
- $2 billion market potential with 850,000 endoscopic screens annually across the US