I have spent the last 24 hours reading every scrap of material I can find on Genera Biosystems and talking to a few guys in the industry.
I first got interested in the HPV testing industry when i had a look at PLT last year after they went on their huge run from 6 cents to 68 cents. I came close to buying PLT when it was on its way back down (around 40 cents) but didn't because I was concerned about a) overhang from the convertible notes, and b) the challenges of product launches when you are trying to change medical practice.
Nevertheless - from my PLT research I got very interested in Pap testing & the HPV diagnostic industry.
There is no question that HPV testing is big today, and will be huge in future years. There is only one FDA-approved test in the USA at present - made by Digene. The Genera prospectus discusses Digene, and says that they were taken over for about US$1.6 billion . . .. and Digene was a one-product company.
Anyway - the Genera test is effectively the same as the Digene test. . . I think it is actually gives a bit more information in some areas, but am still getting to grips with the differences.
Therefore - while PLT have to persuade doctors & regulators to change to a whole new process with Truscreen / Cerviscreen. . . .it looks as though Genera just has to persuade path labs to start using their test instead of the existing Digene test. This will be a question of price as well as the cost of running the test in the lab.
Sonic Healthcare has done a deal with Genera to help them bring the Genera test to market in the USA, and maybe globally?? This is a huge endorsement that I reckon the market will get very excited about.
Has anyone else had a look at this float yet?
GBI Price at posting:
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