Tuesday, October 6, 2015

Seeking Alpha: Launch Delays The Wrong Prescription For GenMark Shares

Investors don't really have to look forward many years to value potential high-growth med-tech stories, but the consequences can be severe when those companies disappoint. GenMark Diagnostics (NASDAQ:GNMK) is certainly not the first or only diagnostics company to disappoint investors with delays in its commercialization timeline, but the confluence of a roughly half-year delay, ongoing progress at BioMerieux, and more risk aversion in the market has pushed the shares down about 40% since my last update.

The good news is that GenMark's ePlex system still compares quite favorably to systems from BioMerieux, Luminex (NASDAQ:LMNX), and Nanosphere (NASDAQ:NSPH) and the multiplex molecular diagnostics (or MDx) market is still very underpenetrated at hospital and reference labs. The bad news is that BioMerieux has done really well with system placements and the hospital diagnostics market is intensely competitive. GenMark does look undervalued today, but investors are looking at a wait of several years before there is meaningful revenue or cash flow and the risk here is well above average.

Continue here:
Launch Delays The Wrong Prescription For GenMark Shares

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