When I last wrote about GenMark Diagnostics (NASDAQ:GNMK) in October of 2015, I said things like "barring another significant delay" and "can ill-afford further disappointments on the commercial timeline" with respect to the value to be gained from the ePlex system. Well, to pull a page from the writers of clickbait, "you'll never guess what happens next..."
Yep. More delays. Instead of getting the ePlex on the market in
Europe before year-end of 2015 and on the U.S. market in mid-2016 (ahead
of the key flu season), European commercialization has slipped out of
the first quarter of 2016 and U.S. approval may not come until November
or December of this year - which will mean that the company misses the
large U.S. flu season almost entirely.
This isn't the end of the line for GenMark, but I can wholeheartedly
understand why it may be past that point for the patience of many
investors. These seemingly endless delays have given GenMark's prime
rival (bioMerieux (BIM.PA)) the opportunity to get more of its
own devices into the field and it also increases the future dilution
GenMark is likely to experience as it incurs more cash outflows during
the earlier commercialization process. There does still seem to be value
here, but it the numerous disappointments mean that it takes a nearly
masochistic level of patience to see that value come to fruition.
The Excruciating Wait At GenMark Drags On