report

Bioshares has bought out a new report today, a few points made by them:

1. The certification of GTG's DNA testing facility allows them to start selling the DNA-based predictive breast cancer test into the US.

2. The test will sell at around $500, making it very affordable. It's expected that the test will be reimbursed by insurers under many nedical process codes.

3. Dec/Jan the company ran 8 focus groups in the regions where the product will be launched, they around 14 specialists attend each meeting. The pricing was found to be acceptable and good interest was shown.

4. It was suggested that there will be more need for the test with women who have a high familial risk of breast cancer but have shown to be BRCA1/2 negative. This group will have been tested by Myriad Genetics with BRACAnalysis, Myriad generated sales last year of $362m, most of which were for sales of that test, it costs US$3340.

Around 85% of these women test negative to that test, it's these 300k women who are at high risk and that the focus groups idicated are the greatest application for the test. This gives a target market of $150m a year for GTG in the US.

5. GTG will also offer the test to the one million women who each year test positive having a mammogram but an indeterminate result from breast biopsy.

6. A throat swab will be placed in an envelope and sent to Melbourne for analysis. GTG are also seeking to commercialise the test in EU and Pacific Rim region.

7. It reported the stronger cash flows of the company with $16.2m received and net operating cash flow of $4.1m $12.8m of that came from licensing fees for the non-coding DNA patent estate. They are also $2m ahead of budget this year.

Spec Class A Buy rating.