In an Oct. 25 research note, H.C. Wainwright & Co. analyst Yi Chen reported that newly compiled data support the clinical utility of Interpace Diagnostics Group Inc.'s (IDXG:NASDAQ) PancraGEN and could help drive market adoption of it.
The diagnostic test is used for early detection of cancer in indeterminate pancreatic cysts and pancreatobiliary solid lesions.
Chen reviewed and commented on the new data. They are from a retrospective records review of 2,167 patients who had two or more endoscopic ultrasound-guided fine needle aspirations (EUS-FNAs) of their pancreatic cyst and were tested with PancraGEN between April 2002 and March 2019. Interpace presented these study results recently at the annual meeting of the American College of Gastroenterology.
"The data demonstrate that examining molecular progression and regression of pancreatic cysts over time using PancraGEN can lead to a better understanding of their natural history, which can help guide the frequency of surveillance," Chen noted.
Specifically, findings showed that 86% of patients initially had a low risk PancraGEN result. Among those, at follow-up EUS-FNA, PancraGEN showed 92% to still be low risk and 8% to now be moderate or high risk. About 99% of diagnostic progression was only to moderate risk.
Of the 14% who initially had a moderate or high risk PancraGEN result, 21% remained moderate or high risk at follow-up whereas 79% regressed to low risk. More than 99% of the cases of diagnostic regression was from moderate risk.
Chen reported, too, that last month, Interpace contracted with three independent Blue Cross Blue Shield (BCBS) plans, equating to 5 million covered lives across Alabama, Arkansas and Arizona. This development means these insurers' subscribers now have in-network access to the biotech's ThyGeNEXT and ThyraMIR tests, which are used to evaluate indeterminate thyroid biopsies.
These and previously announced similar contracts boost the positioning of Interpace's thyroid diagnostics in the market and ensure reimbursement for their use, Chen pointed out. "We believe the company's continuous expansion in contracts with commercial payors should increase market adoption and test volume growth in the coming quarters," he added.
H.C. Wainwright has a Buy rating and a $2 per share target price on Interpace, whose stock is now trading at around $0.78 per share.
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Disclosures from H.C. Wainwright & Co., Interpace Diagnostics Group Inc., Company Update, October 25, 2019
Investment Banking Services include, but are not limited to, acting as a manager/co-manager in the underwriting or placement of securities, acting as financial advisor, and/or providing corporate finance or capital markets-related services to a company or one of its affiliates or subsidiaries within the past 12 months.
I, Yi Chen, Ph.D. CFA and Raghuram Selvaraju, Ph.D., certify that 1) all of the views expressed in this report accurately reflect my personal views about any and all subject securities or issuers discussed; and 2) no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report; and 3) neither myself nor any members of my household is an officer, director or advisory board member of these companies.
None of the research analysts or the research analyst's household has a financial interest in the securities of Interpace Diagnostics Group, Inc. (including, without limitation, any option, right, warrant, future, long or short position).
As of September 30, 2019 neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securities of Co-Diagnostics, Inc.
Neither the research analyst nor the Firm has any material conflict of interest in of which the research analyst knows or has reason to know at the time of publication of this research report.
The research analyst principally responsible for preparation of the report does not receive compensation that is based upon any specific investment banking services or transaction but is compensated based on factors including total revenue and profitability of the Firm, a substantial portion of which is derived from investment banking services.
The firm or its affiliates received compensation from Interpace Diagnostics Group, Inc. for non-investment banking services in the previous 12 months.
The Firm or its affiliates did receive compensation from Interpace Diagnostics Group, Inc. for investment banking services within twelve months before, and will seek compensation from the companies mentioned in this report for investment banking services within three months following publication of the research report.
H.C. Wainwright & Co., LLC managed or co-managed a public offering of securities for Interpace Diagnostics Group, Inc. during the past 12 months.
The Firm does not make a market in Interpace Diagnostics Group, Inc. as of the date of this research report.
H.C. Wainwright & Co., LLC and its affiliates, officers, directors, and employees, excluding its analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives (including options and warrants) thereof of covered companies referred to in this research report.
