Wednesday, April 13, 2016

Seeking Alpha: The Excruciating Wait At GenMark Drags On

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.

Continue here:
The Excruciating Wait At GenMark Drags On

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