Editorial note: On June 18, Quotient reported concordance data for the initial MosaiQ blood grouping microarray that "exceeded the targeted criteria for submission for CE marking." The company expects to file for European regulatory approvals for the initial MoasiQ IH microarray in the second half of 2018. Quotient noted that it has received invitations to "participate in tenders once MosaiQ has obtained European approval for the initial IH microarray." Quotient shares rose sharply on the news.
In a May 18 research note, analyst Sung Ji Nam with BTIG reported that Quotient Ltd. (QTNT:NASDAQ) reached an "important milestone" by starting European trials for MosaiQ Microarray, or IH I, its blood grouping technology. Quotient is "another step closer to the commercial launch of [a] potentially revolutionary platform in the $3 billion transfusion diagnostics market," added Nam.
These head-to-head studies will be conducted on about 3,000 donor samples and at three locations. Results are expected to be released this month.
Prior to beginning the trials, Quotient performed verification and validation (V&V) studies, which maximally derisked these European Union field trials, prepared the test sites and conducted the necessary training.
Once Quotient successfully finishes the testing of IH I, its $36 million ($36M) debt facility will become available. Also, the company has another $49M in warrants that could become available by the end of next month, July. "All in, management continues to believe the company is sufficiently capitalized through early MosaiQ commercialization," Nam noted.
Based on Quotient continuing to deliver on its promises, the company "remains well within reach of achieving a CE mark before year-end for IH I," Nam purported, taking into account a three-month window for agency review.
Also likely to occur this year, in H2/18, is Quotient commencing V&V studies for MosaiQ SDS Microarray and moving expanded blood grouping, or IH II, to manufacturing from development. Nam noted that, according to management, the company "remains well positioned for the near-term European tender opportunities (greater than $250M in annualized opportunity over the next two to three years), including tenders becoming available over the next 12 months."
BTIG has a Buy rating and a $10 per share price target on Quotient, whose stock is trading today at around $8.19 per share.
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Disclosures from BTIG, Quotient Ltd., Equity Research, May 18, 2018
Analyst Certification I, Sung Ji Nam, hereby certify that the views about the companies and securities discussed in this report are accurately expressed and that I have not received and will not receive direct or indirect compensation in exchange for expressing specific recommendations or views in this report.
Company–Specific Regulatory Disclosures BTIG LLC expects to receive or intends to seek compensation for investment banking services in the next 3 months from: Quotient Ltd. (QTNT)
The research analyst(s) responsible for the preparation of this report receives compensation based upon a variety of factors, including the quality and accuracy of research, internal/client feedback, and overall Firm revenues.
