GenMark Diagnostics, Inc. (GNMK)

[fredugsi]

What's with all these useless SEC filings lately regarding ownership statements? We need to get this company management on the road to tell their story + new analyst coverage wouldn't hurt...

[biocqr]

GenMark Diagnostics target raised to $14 at Canaccord Genuity; on to the next leg of growth (11.14)

Canaccord raises their GNMK tgt to $14 from $12. Given mgmt's recent track record of executing, coupled with its long-term growth trajectory, firm believes GNMK merits trading at the upper end of the MDx peer group P/S multiple (5x-7x). Given the strong start to the flu season, GNMK should see good results from its RVP test. CDC indicated that 7.3% of all deaths resulted from pneumonia and influenza, crossing the "epidemic" threshold of 7.2%.


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[biocqr]

Stop your complaining! :)

The rumor is there were customers who bought in 4Q because of the flu epidemic, that were expected to wait until 1Q 2013.

[fredugsi]

Will this stock ever stop going up...it's hard for me to breathe...$18.70 left for it to hit my original long term price target!!

[fredugsi]

Good points. Thanks!

[biocqr]

The other factor may be the flu hysteria and speculation that the RVP test is doing well.

[fredugsi]

Besides momentum from JPM conference, any specific fundamental info on the recent price/volume jump?

[biocqr]

Breaking out.

[biocqr]

Nice move today... up 7% after their JP Morgan presentation yesterday.

replay here... http://jpmorgan.metameetings.com/webcasts/healthcare13/webcast_of.php?p=10856

[biocqr]

GenMark Diagnostics to Present at the 31st Annual J.P. Morgan Healthcare Conference

CARLSBAD, Calif.--(BUSINESS WIRE)-- GenMark Diagnostics, Inc. (NASDAQ: GNMK), a leading provider of automated, multiplex molecular diagnostic testing systems, will present at the 31st Annual J.P. Morgan Healthcare Conference to be held at the Westin St. Francis Hotel in San Francisco on January 8, 2013. Hany Massarany, President and Chief Executive Officer, will present at 11:30 a.m. Pacific time (2:30 p.m. Eastern time) with a question and answer session scheduled immediately following the presentation.

[fredugsi]

I plan on stepping up and buying aggressively at this level under $9. It's a GIFT!!!!!!

[biocqr]

GenMark presenting at JP Morgan Healthcare Conf... Tuesday, January 8, 2013 @ 11:30 AM PST

http://jpmorgan.metameetings.com/webcasts/healthcare13/agenda.html

Haven't seen a PR but hey're on the agenda.

[BioBum]

Potentially the 2.5% tax on revenues being discussed for medical device makers. Could also be retail locking in profits, the number of shares traded was insignificant.

[fredugsi]

Tax selling today? Any other reason why stock is down over 5%?

[BioBum]

Canaccord presentation, you will have to register to listen/view:
http://www.wsw.com/webcast/canaccord8/gnmk/

- First actual mockup of the NexGen system
- More discussion around the core technology/patent protection

[biocqr]

Influenza spiking... highest # of doc visits since 2003...

Situation Update: Summary of Weekly FluView

According to this week’s FluView, flu activity in the United States has increased substantially throughout the nation, most notably in the south central and southeast regions of the country. People who have not already received a flu vaccine should do so now. This FluView update reports on influenza activity for November 18-24, 2012 of the 2012-2013 influenza season.

Below is a summary of these key indicators:
The proportion of visits to doctors for influenza-like illness (ILI) was at the national baseline. This is the earliest in the regular season that influenza activity has reached the national baseline level since the 2003-2004 season. This week, 5 U.S. regions reported ILI activity above region-specific baseline levels and 5 states (Alabama, Louisiana, Mississippi, Tennessee and Texas), experienced high ILI activity.

Four states reported widespread influenza activity (Alaska, Mississippi, New York, and South Carolina). Regional influenza activity was reported by 7 states (Alabama, Idaho, Iowa, Maine, Massachusetts, North Carolina, and Ohio). Nineteen states reported local influenza activity. This is an increase from the 8 states that reported local influenza activity last week.

http://www.cdc.gov/flu/weekly/summary.htm

[biocqr]

Wow - 2.6M shares. The 50 day avg volume was 101K shares... 25X increase!

[fredugsi]

Yea baby! What a way to end the month. $12 by the end of the year?

[biocqr]

[BioBum]

Blue Sky above..........

[biocqr]

Breakout on decent vol... all time high.

[biocqr]

Could this bode well for RVP volume?...

http://www.google.org/flutrends/us/#US

you can compare current 2012 data with past years in upper right of graph.

[BioBum]

Link to Piper Jaffray presentation, very positive:

http://www.media-server.com/m/p/797awbvf

[biocqr]

GenMark Diagnostics to Present at the Canaccord Genuity Medical Technology & Diagnostics Forum
CARLSBAD, Calif.--(BUSINESS WIRE)-- GenMark Diagnostics, Inc. (NASDAQ: GNMK), a leading provider of automated, multiplex molecular diagnostic testing systems, will present at the Canaccord Genuity Medical Technology & Diagnostics Forum to be held at the Le Parker Meridien in New York, NY on December 4, 2012.

Hany Massarany, President and Chief Executive Officer, will present at 11:00 a.m. Eastern time (8:00 a.m. Pacific time) with a question and answer session scheduled immediately following the presentation. During the presentation, the company will discuss business and financial developments and trends.

A live webcast and audio archive of the presentation will be available at www.genmarkdx.com. A replay of the webcast will be available on the company's website for 90 days or can be viewed by visiting Canaccord Genuity.

[fredugsi]

Sounds good to me! Would agree with your thoughts. As you may know, company is scheduled to present at 2 conferences, piper on the 28th; canaccord genuity on the 4th...

[BioBum]

fredugsi, just getting caught up after being on vacation for the past week. Nice action in Genmark!!! Near term I see potential for a move to the $11-$12 range based on the consolidation for a month+ and the recent break out. We still have a ways to go before we're over bought. I would like to see the recent gains get consolidated for a few days before we make the next leg up. If we continue to see positive news flow related to NexGen and a on time launch we hit 30 by end of Q3' 13 IMHO.

[fredugsi]

BioBum--your thoughts technically here would be appreciated. I see next stop at $9.50, then what?

[fredugsi]

Yea, love the volume and the way this stock is trading. No news I'm aware of.

[BioBum]

Dead board, nice action in GNMK today. Volume much higher than normal for this time of day (maybe institutions)and mostly to the upside. I haven't seen the bid/ask this tight for sometime and now we're seeing support on the bid. We close above 8.70ish and we retest and possibly break the former highs. Looking good.

[BioBum]

The MMs are trying their best to get people frustrated on this one. Not being too successful however. Can't wait for some positive coverage, need more analysts like Piper stepping up.

[BioBum]

I completely agree fredugsi. Also, it's very interesting to watch this range box trading (with bid drops on 100 lot sales) and buys at the ask of a larger size. The MMs are trying "hard" to build a position of size and trying to shake the retail tree. I've seen this on many stocks over the years, we have a significant move coming in the next few days IMO.

[fredugsi]

See my 6/12 post, BioBum. This company needs new research coverage. Maybe Jim Cramer can start getting the word out?

[BioBum]

A little surprised at the muted response to the earnings thus far. All signs point to progress on every front. Good to see the volume picking up a bit, hopefully that trend continues and we start to see new/updated coverage.

[biocqr]

"4 analyzers were outright sales" - this makes more sense...

$157K/4 = $39.5K per analyzer

these are probably higher volume units paying lower rate for reagents.

[BioBum]

Absolutely, it's a Trojan horse strategy. Once the XT-8 systems are placed, they have a captive client who then get up sold on the new test kits as well as a "value" priced NexGen system that should carry a significantly higher price. It's a great model.

[biocqr]

Reagent revenues for the third quarter grew 339% year-over-year to $5.1 million from $1.1 million. Instrument and other revenues increased by 1% year-over-year to $157,000 from $156,000 due mainly to capital sales of instruments.

The Company placed a net 35 analyzers during the quarter, bringing the total installed base to 255. All of the Company's 255 analyzers have been placed with end-user laboratories within the U.S. market.

The XT-8 sells for a lot less than I estimated...

$157K/35 = $4,485

are they giving away the razor to sell the blades?

[BioBum]

I sure hope not and like the fact that Genmark does very little to pump the stock.

[biocqr]

Pre-market I'm seeing $9.58 offered with no volume. I don't think my bid is going to get hit @ 8.08 LOL.

[BioBum]

Based on the earnings posted last night, we should have a very active conference call today. I would expect new coverage and several analysts significantly upping their 2013 FY estimates. We will hopefully hear more about NexGen developments and also new oncology related tests. IMO, we should conservatively see a $2+ move at a minimum today and a 50% move from here to EOY. With the earnings/execution as smooth as it is, my biggest fear is a hostile take over.

BB

[BioBum]

Holy buckets, this is an absolute blow out Q. In a tough market meeting their already aggressive targets followed by a significant raise for FY. This stock moves $2+ tomorrow minimum. Hany & the management team are executing on this business with laser precision. With Obama winning the elections and Obamacare in full focus, could be a huge boost for Genmark placements in labs.

[biocqr]

Wow - this is just a flat out a blow out quarter...

Revs for the first 6 mos was $5.6M... they almost equaled that this Q with $5.3M... and now they're guiding for >$7M in 4Q. Annual revs/workstation jumped from $48K in 1Q to $73K in 2Q to $93K in 3Q....impressive.

CC tomorrow..

GenMark Diagnostics Third Quarter Earnings Conference Call
Nov 8, 2012 at 9:00 AM ET

http://ir.genmarkdx.com/eventdetail.cfm?eventid=120862

[biocqr]

GenMark Diagnostics Reports Third Quarter 2012 Results

Quarterly Reagent Revenue Grows 339%
Installed Base Grows to 255 Analyzers
Quarterly Gross Margin Reaches 42%
Annuity Per Analyzer Increased to $93,000
FY 2012 Revenue Guidance Raised to > $18 million

November 7, 2012
CARLSBAD, Calif.--(BUSINESS WIRE)-- GenMark Diagnostics, Inc. (Nasdaq:GNMK), a leading provider of automated, multiplex molecular diagnostic testing systems, today reported financial results for the third quarter ended September 30, 2012.

Revenues for the quarter ending September 30, 2012 were $5.3 million compared with $1.3 million during the third quarter of 2011. The 299% year-over-year increase in total revenue reflects an increase in the number of systems placed at customer sites and a significant increase in the number of tests sold, including as a result of test menu expansion. Reagent revenues for the third quarter grew 339% year-over-year to $5.1 million from $1.1 million. Instrument and other revenues increased by 1% year-over-year to $157,000 from $156,000 due mainly to capital sales of instruments.

The Company placed a net 35 analyzers during the quarter, bringing the total installed base to 255. All of the Company's 255 analyzers have been placed with end-user laboratories within the U.S. market.

Gross profit for the quarter ending September 30, 2012 was $2.2 million, or 42% of revenue, compared with a gross loss of $469,000, or (36%) of revenue for the same period in 2011. The continued improvement in gross profit is the result of significant sales volume increases and manufacturing efficiencies.

Operating expenses increased $2.8 million to $8.5 million during the third quarter of 2012 compared with the third quarter of 2011. Selling, General and Administrative expenses increased $262,000 year-over-year due to the increase in revenue, headcount growth and other corporate expenses. Research and Development expenses increased $2.6 million due to an expansion of the R&D team, menu development for the XT-8 and initial development work on the NexGen platform.

Loss per share was $0.20 for the third quarter of 2012, compared with a loss per share of $0.31 in the third quarter of 2011.

"Our Commercial team delivered another strong quarter. We expanded our installed base to 255 by placing 35 new analyzers in the field. We also significantly grew our reagents business in the third quarter by adding new customers, as well as expanding menu utilization and revenue with existing customers," stated GenMark's President & CEO Hany Massarany. "Furthermore, we accomplished several key product development goals in the quarter, including launching our FDA cleared RVP Test, as well as successfully showing a prototype of our NexGen sample-to-answer system at the Association for Molecular Pathology (AMP) meeting at the end of October."

The Company ended the third quarter of 2012 with $57.0 million in cash, cash equivalents and restricted cash. The Company intends to continue utilizing its cash balances to invest in new product and menu development, including the development of its NexGen platform, and for infrastructure improvements and general corporate purposes.

[BioBum]

Looks like we have a blue light special on aisle 4. Genmark is soooo under the radar at the moment, we need a good report and more institutional coverage to get this going. Also, some liquidity would help as well....trades paper thin.

[BioBum]

Positive articles from earlier this year describing the benefits of eSensor vs. competitive technologies:

http://www.cap.org/apps/cap.portal?_nfpb=true&cntvwrPtlt_actionOverride=%2Fportlets%2FcontentViewer%2Fshow&_windowLabel=cntvwrPtlt&cntvwrPtlt{actionForm.contentReference}=cap_today%2F0412%2F0412a_respiratory_virus.html&_state=maximized&_pageLabel=cntvwr

http://www.biofiredx.com/pdfs/Posters/2012/An%20Analytical%20Comparison%20of%20Four%20Commercial%20Respiratory%20Virus%20Panels-CVS2012.pdf

[BioBum]

Nice to see the bid firming with 3 more days till earnings. Those abstracts were quite positive as well. Look forward to hearing about future oncology targets.

[BioBum]

Wow thanks CynicalTrader, that was an excellent extract positive on all fronts across the various test types. When coupled with the speed of results, it's a paradigm shift to say the least. When will the market catch up to this reality?

[biocqr]

AMP abstracts on Thrombo, HVC, RVP etc… eSensor vs. Siemens, Roche, Luminex, Idaho… all positive...

Download here...search on "Genmark" ...

http://download.journals.elsevierhealth.com/pdfs/journals/1525-1578/PIIS1525157812002115.pdf

[BioBum]

Five trading days till earnings. I can't wait to hear the progress report against their key strategic initiatives 1) NextGen & 2) Sales growth acceleration.

[BioBum]

Fred, not certain I would make an interpretation one way or the other. It would be really nice for them to beat the number and raise guidance again, that would really send a message to the market. Also, 2013 earnings consensus looks quite conservative at the moment.

[fredugsi]

I don't recall GNMK ever reporting BEFORE the market opens...always after the market closes. This has got to be a positive! Thoughts?