Wednesday, March 12, 2014

Seeking Alpha: The LipoScience Holding Pattern Continues

The reimbursement environment for diagnostics company LipoScience (LPDX) is not going to change in a quarter's time and with that, neither will the commercial/financial situation change all that much. LipoScience remains what it has been for some time - a company with a very interesting cholesterol test, one that measures the actual number of cholesterol particles and not just the overall amount of cholesterol in the blood, but a company that definitely needs to sell payers and clinicians on the importance of this test and its role in health care management.

If LipoScience can accumulate and present the data necessary to sway insurance companies and doctors, $100 million in annual revenue in five years' time and $200 million in 10 years' time should be sufficient to justify a stock price closer to $8 today. Unfortunately, it's quite difficult to get institutions excited about a small-cap med-tech stock reporting contracting revenue and that has seen recent executive turnover. Readers thinking about LipoScience as an investment need to realize that this is both an above-average risk situation and one where patience will be required.

Read the full article at Seeking Alpha:
The LipoScience Holding Pattern Continues

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