Foundation Medicine fka FMI

[DewDiligence]

Roche’s analysis is consistent with my (Aug2014) valuation model in #msg-105563008.

[DewDiligence]

Roche acquires majority stake in FMI @$50/sh:

#msg-109821966 FMI’s PR
#msg-109822117 NYT DealBook

[KingDMC]

Nuts! Crazy gap up!

[WorstLuck]

Thanks, Dew.

Way quicker than I expected. Will lose some of the holding to calls sold at 35 and 40 that I felt were unlikely to be hit but still very happy.

Hopefully price holds $50 (or is much higher - lol) until the balance goes long term.

[TradeSmart.ai]

Roche buyout news???

[TradeSmart.ai]

Wow this thing might hit 150% today :0O

[onemodolar]

Dew Thank You.
This is the best deal ever!

In view of privatization of Genentech by Roche, I am considering holding my shares for the further gain and long tern tax purpose.
FMI can be huge in in oncology field, tapping into global market.
Immuno-pathology and liquid biopsy fields as well.
Unlimited resources and mega infra-structures.

FMI now has WINGS!

[anesthesia doc]

I want to be the first to thanks DewDilengence for pointing me towards FMI !
Thanks!

[onemodolar]

ROCHE
YES

[DewDiligence]

The WF report summary is in #msg-109228640.

[marthambles]

Wow! I guess people put a lot of stock into what Well Fargo says.

[marthambles]

Wells Fargo initiates with an outperform and 30-32 price target. Says company has first mover advantage in a high growth market. Also thinks the competitive moat is under-appreciated.

[onemodolar]

Done with "buying at the dip"
I don't expect secondary offering at $20,IMO.

[onemodolar]

Will they still do it at the current market condition?
They decided not to do it at $30.
Clovis, Agios, MM, breast ca --- not much of boost at all.
If FMI has no major PR, such as new coverage for reimbursement, I wonder what would be the rationale or urgency to proceed now.
It is very interesting to watch how it pans out.

[DewDiligence]

ASH abstracts relating to FMI:

https://ash.confex.com/ash/2014/webprogram/Paper75913.html
https://ash.confex.com/ash/2014/webprogram/Paper71507.html
https://ash.confex.com/ash/2014/webprogram/Paper75342.html
https://ash.confex.com/ash/2014/webprogram/Paper75031.html
https://ash.confex.com/ash/2014/webprogram/Paper75047.html

Complete list of 12 abstracts:
http://www.foundationone.com/ash-2014/

[marthambles]

FMI appoints David Daly Chief Commercial Officer.

http://finance.yahoo.com/news/foundation-medicine-appoints-david-j-223000141.html

[onemodolar]

Added more today.

[DewDiligence]

FMI files $250M mixed shelf registration: #msg-108556104.

[onemodolar]

Thanks Dew.
The result was little disappointing. I may have to lower my expectation for FMI till next year. This reminds me of 'PET CT', rapid uptake in the beginning then quick saturation followed by second surge with CMS coverage.
Q4 has long holiday period. I don't see much hope that they can do 1500 more tests than last Q. BTW, UCSF expects 2000 tests of their own in 2015. If it were not for their pride and ego, out-sourcing seems financially more logical for AMC's. Certainly ILMN is undermining FMI business.

[DewDiligence]

3Q14 results, table of tests performed by quarter, and musings on what happens tomorrow:

#msg-107883531
#msg-107883584

[DewDiligence]

I think the stock will sell off if they don't raise full-year 2014 guidance for the number of tests performed (irrespective of revenue): #msg-107876242.

[onemodolar]

I hope FMI has real stuff for us tonight, EOM.

[DewDiligence]

Thanks for the update. This material can also be accessed by clicking on the link called Recommended Reading for FMI Investors, which resides in the iBox of this message board.

[acgood]

New collection of FMI-related journal articles, plus the NCCN treatment guideline statement that is contributing to the recent strength in the stock:
http://www.biotechduediligence.com/blog/journal-watch-foundation-medicine-edition

[onemodolar]

Great momentum!

[Bickema]

I took a starter position in here last week and added to it this morning.

[DewDiligence]

FMI inks China collaboration with WX: #msg-107428459.

[QuietCedar]

Will jump in myself this coming Monday

[DewDiligence]

FMI gets reimbursement boost and sell-side upgrade:

#msg-107277855
#msg-107290527

[DewDiligence]

FMR owns 11.2% of FMI, according to new 13G filing:

http://www.sec.gov/Archives/edgar/data/315066/000031506614004062/filing.txt

[DewDiligence]

Welcome aboard. If you're a LT investor, I think you'll do quite well buying at these levels. Regards, Dew

[WorstLuck]

Got a starter on a long term position today.

That generally means there is at least 5% lower based on my past history.

Best of luck to all!

[DewDiligence]

Some of us are, LOL.

[expediter13]

Another great stock no one is looking at...

[DewDiligence]

FMI did a nice job rebutting the purported ILMN threat on today’s MS webcast. Worth a listen for the Q&A session.

[DewDiligence]

FMI valuation model: #msg-105563008.

[onemodolar]

Pharma revenue is perishable although it's keeping FMI afloat for now.
ILMA's collaboration is only aiming for the tip of iceberg.

[onemodolar]

I am less concerned about ILMN-BP partnership news.
FMI currently has 3 segments of revenue sources ---CMS,PPO and Pharmaceutical sector.

There will be no distinction among these once nationwide coverage for targeted approach in cancer therapy kicks in.
Diagnosis of cancer is confirmed by obtaining biologic specimen in local communities. The specimen will be sent to NGS operators then the result will be delivered to the end users, local doctors.
ILMN is hardware manufacturer and FMI is value added re-seller.
There is no such thing as Pharma Revenue since all the NGS related service will be reimbursed by third party payers.

Medicare will pay not even a dime till NGS is validated as evidence based medicine. That's why Pharma is paying FMI now.
FMI is doing all the free tests to prove it is worthy.

ILMN will search for NEW actionable anomalies for BP and BP will try to develop chemo agents to target these. ILMN will not have access to new diagnostic specimen. They need to build retail outfits like FMI or DGX.

FMI's first mover advantages can only be recognized after new road is paved. FMI should not forget to build many toll gates with huge speed stops..

ALL IMO

[DewDiligence]

Musings on effect of today's ILMN announcement: #msg-105523083.

[DewDiligence]

FMI reports 2Q14 results:

http://finance.yahoo.com/news/foundation-medicine-announces-2014-second-200000950.html

[DewDiligence]

FMI hires Business Development officer: #msg-105063061.

[DewDiligence]

Given limited number of solid tumors and genetic mutations known to human, DB can be built by anyone like DGX and Sloan-Kettering.

Yes, given sufficient time and money. FMI’s first-mover advantage and reputation are major assets, as you noted.

Do you have any insight to share in regards to continuous stream of revenue through membership fee from care providers or researchers?

I could see such a payment model working for some of the large third-party payers when FMI’s services become more firmly established. The business opportunity from selling to researchers doesn’t excite me so much.

[onemodolar]

Given limited number of solid tumors and genetic mutations known to human, DB can be built by anyone like DGX and Sloan-Kettering.
First mover advantage which i believe in may be huge, but the bar of entry in this field may not be so high.
The reimbursement from third party payers and chemo developer for the test may reach the peak relatively quickly,IMO.

Do you have any insight to share in regards to continuous stream of revenue through membership fee from care providers or researchers?

Sorry to ask so many questions.

[DewDiligence]

How can they protect their IP from new competitors?

FMI’s database is a trade secret! Customers get an answer from the database specific to their situation, but they don’t get to inspect the database per se.

[onemodolar]

I always consider myself as novice and the last person to be informed if there is any news or changes. I am just trying to understand market psychology and time execution.
Hopefully C.C. will end selling pressure and bring buyers back by providing reassurance. Just wishful thinking on my own :).

Identifying companies with good fundamentals seems not so difficult.
All I have to do is to listen to the wise men like you and others on your board.

I am glad that FMI is trying to resolve the specimen size issues.
However, I still need your help understanding how FMI will add extra value to their Information Platform DB and how to protect it.
I hope it is not as simple as like " NSCLC with mutation xyz needs chemo abc"

How can they protect their IP from new competitors?
TIA.

[DewDiligence]

I will add more before the C.C.

Are you expecting anything consequential to be announced in the 2Q14 earnings release or CC?

p.s. I added on Friday.

[onemodolar]

FDA's approach to regulate LDTs is absolutely justified.
Utmost duty of FDA is to protect general public through quality control,IMO.

I agree with IanfromSI.
I will add more before the C.C..
Thanks again,

[DewDiligence]

FMI responds to FDA proposal re regulating LDTs: #msg-104913395.

[DewDiligence]

Why FMI was down sharply on Monday: #msg-104861381.

[DewDiligence]

Leading academic centers ask FDA not to regulate laboratory-developed tests: #msg-104437840.