CollabRx, Inc. Initial Research Report Released
2/26/2014 10:30:25 AM
New York, NY - On February 25, 2014, Taglich Brothers released an initial research report on CollabRx, Inc. (CLRX) with a Speculative Buy rating and a 12-month price target of $10.00 per share. The report noted the following key investment considerations:
• The US genetic testing market could expand from $5 billion in 2012 to $25 billion by 2021, its growth driven by improving testing technology, heightened physician interest, the proven clinical utility of genetic testing, particularly in oncology, and steep reductions in its cost.
• The volume and complexity of data generated by genetic tests has strained information technology and the ability of most clinicians to interpret results properly, making competent bioinformatics critical to improving the utility of genetic tests.
• With its proprietary architecture and analytical software, and access to medical databases and experts, CollabRx has created a product that facilitates physicians’ understanding of genetic test results and provides highly relevant treatment decision support.
• Sales of CollabRx’s recently launched Genetic Variation Annotation™ (GVA) and Therapy Finders™ (TF) products for laboratories and physicians, respectively, should begin to accelerate during the next year, increasing steadily as widening physician interest and improving clinical utility drive gains in genetic test volume.
• The company will operate at a loss for the next two years or so but revenue, by our estimates, should ramp to $16.5 million by 2020.
• With the commercialization of GVA and Therapy Finders, cash burn will increase, depleting most of the cash amassed by predecessor Tegal in 2004 and 2005. At recent burn rates, the company will have to raise additional funds by mid-2015.
The full report can be viewed at http://www.taglichbrothers.com/equityuniverse/companies/collabrx/collabrx.aspx.
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CollabRx, Inc. (NasdaqCM: CLRX), headquartered in San Francisco, CA, is a bioinformatics company. A specialized medical database built by the company, continually updated by software systems tap into an array of online medical and scientific resources and collect input from more than 75 experts at academic and medical institutions. That information provides substantial value-add content to results of genetic tests ordered for the diagnosis and evaluation of cancer cases. The information provided by CollabRx provides clinicians with actionable information for treatment strategies that draw on expert opinions and current data on relevant pharmaceuticals and clinical trials.
CollabRx’s data content and analytics provide treatment decision support to oncologists, a choice dictated by the high US cancer mortality rate and the demonstrated clinical utility of genomic testing in cancer treatment. Sharp reductions in the cost of genetic testing have placed the service within easier reach of physicians, contributing to an increase in demand.
Unlike genomic laboratories that bundle in-house analytics with their test results, CollabRx is a pure bioinformatics company that draws its data from, and bases its analytics on, independent resources, including 75 uncompensated clinicians from leading academic institutions. Through products delivered via SaaS (software-as- a-service) CollabRx provides reference and hospital laboratories with a high-value service add-on while sparing them the need to make sizable investments in computer equipment and software development.
Taglich Brothers, Inc. is full-service broker dealer focused exclusively on microcap companies. The Company defines the microcap segment of the equity market as companies with less than $250 million in market capitalization. Taglich Brothers currently offers institutional and retail brokerage services, investment banking and comprehensive research coverage to the investment community.
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