MDxHealth SA's (MDxH:NASDAQ) preliminarily announced Q3/23 revenue surpassed forecasts, reported Oppenheimer analyst Francois Brisebois in an October 10 research note.
"The current pace positions the company well to hit, if not exceed, its full-year 2023 guidance of US$65−70 million (US$65−70M)," Brisebois wrote.
536% Return on Investment
Based on the news, Oppenheimer reiterated its Outperform rating and US$15 per share price target on the precision diagnostics firm. In comparison, the company's current share price is about US$2.36.
The difference between these figures represents a substantial gain for investors of MDxHealth, of 536%.
Comparison of Numbers
MDxHealth generated about US$19.3M in revenue during Q3/23 versus Oppenheimer's estimate of US$17.3M and the consensus forecast of US$17.5M, noted Brisebois.
Of the total quarterly revenue, sales of Confirm MDx, the company's proprietary diagnostic test for prostate cancer post-biopsy, accounted for US$6.6M, Brisebois relayed. Sales of Resolve MDx, a diagnostic test for urinary tract infection, comprised US$2.7M.
Both amounts beat Oppenheimer's projections of US$6.5M and US$2M, respectively.
"We are pleased to see the year-over-year growth in billable test volume in Confirm and Resolve," commented Brisebois.
Cigna To Initiate Coverage
As far as insurance coverage of MDxHealth's products, there is good news, noted Brisebois. In Q4/23, Cigna will begin covering Select MDx, MDxHealth's pre-biopsy test for prostate cancer.
"Given MDxHealth's robust clinical utility data and strong adoption from its urology customer base, we anticipate more reimbursement wins," the analyst wrote.
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Disclosure for Oppenheimer, MDxHealth SA ADR, October 10, 2023
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