Our new head of Healthcare at Research Edge, Tom Tobin, issued the following note before the open yesterday to his exclusive network. Big alpha day for Tom. I'm psyched to be partnered with him again!
If you're interested in our Healthcare research, please email Tom at
Here's his MYGN note from the morning of 6/30/08:
MYGN!!
"The exclamation points are probably not necessary given the near universal dismissal of the compound. What's left is a fast growing, profitable, bankers dream of a diagnostics company.
I am sure there are pitch books on the desks of company management discussing the merits of splitting the Pharmaceutical and Molecular Diagnostics companies. I agree with the move. Management is killing the Flurizan development program after $68M in costs and they should probably kill drug development altogether and get on with the business of genetic testing.
Molecular Diagnostics revenue growth is running above 50% with EBITDA margins at 51%, and EBITDA of $29M for the March quarter. MYGN shares look like they will open around 42, or 12X EV/EBITDA on just the Molecular Diagnostics business. With the short interest at 30% of the float, I'd bet the shares are higher from here.
Tom Tobin
Managing Director
Healthcare
(Chart courtesy of stockcharts.com)
If you're interested in our Healthcare research, please email Tom at
Here's his MYGN note from the morning of 6/30/08:
MYGN!!
"The exclamation points are probably not necessary given the near universal dismissal of the compound. What's left is a fast growing, profitable, bankers dream of a diagnostics company.
I am sure there are pitch books on the desks of company management discussing the merits of splitting the Pharmaceutical and Molecular Diagnostics companies. I agree with the move. Management is killing the Flurizan development program after $68M in costs and they should probably kill drug development altogether and get on with the business of genetic testing.
Molecular Diagnostics revenue growth is running above 50% with EBITDA margins at 51%, and EBITDA of $29M for the March quarter. MYGN shares look like they will open around 42, or 12X EV/EBITDA on just the Molecular Diagnostics business. With the short interest at 30% of the float, I'd bet the shares are higher from here.
Tom Tobin
Managing Director
Healthcare
(Chart courtesy of stockcharts.com)
