Interpace Biosciences, Inc. (IDXG) research, news, and more from GeoInvesting

Company description

Tue, 05 Nov 2024 14:16:03 GMT

Interpace Biosciences, Inc. provides molecular diagnostic tests, bioinformatics, and pathology services for evaluating cancer risk in the United States. The company offers PancraGEN, a pancreatic cyst and pancreaticobiliary solid lesion genomic test for the diagnosis and prognosis of pancreatic cancer; PanDNA, a molecular only version of PancraGEN; and ThyGeNEXT, an oncogenic mutation panel to identify malignant thyroid nodules. It also provides ThyraMIR assesses thyroid nodules for risk of malignancy utilizing a proprietary microRNA gene-expression assay; and RespriDx, a genomic test that helps physicians to differentiate metastatic or recurrent lung cancer. The company primarily serves physicians, cancer center, clinics, laboratories, pathology groups, and hospitals. The company was formerly known as Interpace Diagnostics Group, Inc. and changed its name to Interpace Biosciences, Inc. in November 2019. Interpace Biosciences, Inc. was incorporated in 1986 and is headquartered in Parsippany, New Jersey.

Research

Sun, 02 Feb 2025 05:00:00 GMT

Interpace Biosciences, Inc. (OTC:IDXG) announced preliminary full year and fourth quarter 2024 results:

Q4 and FY Test volume increase 21% and 17% year-over-year
Q4 and FY Volume, Revenue, and Profitability at all-time record levels

“Q4 continued the Company’s trend of double-digit year-over-year volume and revenue growth fueled by the full suite of Interpace testing services. Physician demand for ThyGeNEXT® + ThyraMIR®v2, our Company’s unique mutational- and microRNA-based assay for indeterminate thyroid nodules was exceptionally high and a very strong driver of the Company’s profitability. stated Tom Burnell, President and CEO. Burnell added, “the Company completed a strong year financially in 2024 which has set the stage to continue to execute its strategy of growth in 2025. The Company understands the uncertainty surrounding PancraGEN® Medicare reimbursement going forward and, in the event of a non-coverage determination, has made plans to manage through this situation. Our Endo business unit is strong and profitable. It provides a solid foundation from which to continue our strong performance, should this situation occur.”

It appears that the record level of profitability could at least translate to EPS of at least $0.40. We need to take a deeper dive into the June financials to be sure there were no one time items. We also plan to take a closer look at the capital structure to be sure the current 4.4 million share count is accurate.

Two things to consider on capital structure:

Conversion of preferred stock would take fully diluted count to 28 million shares (conversion price is at $2)
In our December open forum, Maj talked about the company and the likelihood of an equity raise.

See our recent coverage on IDXG for our breakdown of the PancaGEN Medicare/Medicaid coverage determination.

Interpace Biosciences, Inc. provides molecular diagnostic tests, bioinformatics, and pathology services for evaluating cancer risk in the United States

Research

Wed, 29 Jan 2025 18:17:34 GMT

Interpace Biosciences, Inc. (OTC:IDXG) ($1.31; $5.7M market cap) - In our December 6, 2024 Open Forum, to address a member’s question, Maj and Jan touched on IDXG’s recent strong results, capital structure and possible loss of medicare/medicaid coverage.

The stock was trading at around $3 per share.

On January 9th, 2025, the company announced that its PancraGEN diagnostic test would no longer be covered by Medicare and Medicaid services, causing the stock to tumble 70% to the 85 cent range.

Finally, we added a research note on January 15, 2025 referencing comments by the company on its expectations to remain profitable, even without PancraGen.

However, yesterday the company announced:

“notification that the Centers for Medicare & Medicaid Services (CMS) directed its Medicare Administrative Contractors, Novitas and First Coast Service Options, Inc., to delay implementation of the Genetic Testing for Oncology Local Coverage Determination (LCD) (L39365), from February 23, 2025, to April 24, 2025.

This change of effective date will allow the incoming Trump administration time to fully review the proposed policy changes, re-evaluate for themselves the supporting clinical evidence for the PancraGEN® assay, and fully assess the negative impact on patient care if the currently proposed LCD comes into effect.”

Comments from management:

“While the Company is sustainable without PancraGEN with our testing franchise for indeterminant thyroid nodules, ThyGeNEXT® + ThyraMIR®v2, this extension allows Interpace to continue offering PancraGEN and the related Point2® fluid chemistry tests for amylase, CEA, and glucose...

...Further review and evaluation of the clinical validation and utility of PancraGEN demonstrates the incoming Trump administration’s commitment to proven, cost-effective patient care.”

Takeaways:

IDXG suffered a major blow when its PancraGEN diagnostic test lost Medicare and Medicaid coverage, leading to a 70% decline in the stock. However, the recent CMS decision to delay the implementation of the Local Coverage Determination (LCD) until April 24, 2025, provides a potential reprieve. This delay gives the incoming Trump administration time to review the decision, which could create a window for the coverage to be reinstated.

From a stock price perspective:

Short-Term Impact: The delay in the LCD implementation should provide some short-term relief and could drive a bounce in the stock (which has seemingly already started to occur), especially if traders/speculators anticipate a possible reversal of the coverage decision.
Medium-Term To Long-Term Considerations: The management's assertion that the company remains sustainable without PancraGEN is important, but investors will need to assess whether the thyroid testing franchise alone can support long-term profitability.

Overall, the situation introduces volatility and speculation into IDXG’s stock. If investors believe there’s a meaningful chance of reinstatement, the stock may see a larger recovery rally. But if CMS upholds the decision after the delay, the upside opportunity to downside risk assessment depends on how successful and profitable the remaining business without PancraGEN can become.

Of course, our ultimate goal is to interview the company to get ahead of the curve on any of these scenarios and pick the brain of management for additional perspectives and insights into how politics is framing investor confidence, or lack thereof. Please stay tuned!

Interpace Biosciences, Inc. provides molecular diagnostic tests, bioinformatics, and pathology services for evaluating cancer risk in the United States

Research

Wed, 15 Jan 2025 21:24:30 GMT

Interpace Biosciences, Inc. (OTC:IDXG) ($0.96; $4.2M market cap) - In our December open forum, to address a member’s question, Maj and Jan touched on IDXG’s recent strong results, capital structure and possible loss of medicare/medicaid coverage.

The stock was trading at around $3 per share. On January 9th, 2025, the company announced that its PancraGEN diagnostic test will no longer be covered by Medicare and Medicaid services.

The stock fell over 70% that day, hitting lows of $0.52 before closing the day at around $0.85. We are looking into if this steep drop represents an opportunity based on the company’s remaining product portfolio.

What really caught our attention was the company’s comments about remaining profitable despite the loss of coverage with PancraGEN.

“This decision is inconsistent with advancing medicine and goals to improve the quality of patient care. While Interpace will consider any and all remedies or actions against Novitas/CMS, the impending loss of Medicare reimbursement will necessitate the restructuring of Interpace. A plan has been developed and is ready for implementation. The Company is sustainable without PancraGEN and we expect that our testing franchise for indeterminant thyroid nodules, ThyGeNEXT® + ThyraMIR®v2, will allow us to remain profitable in 2025 and beyond.”

In our initial look, we were unable to find the revenue and earnings breakout for the PancraGEN product. However, if you’re willing to dig deeper, you could determine the price for one PancraGEN test and multiply it by 7,000 to get 2024 revenue.

The company discloses the number of tests each year. In 2024, they sold 7,000 tests, which should give a rough estimate of the associated revenue. Pricing for Medicare reimbursement is generally available to the public, but likely through FOIA or some platforms aggregating this information.

Of parafollicular note is that the company has over $20 million in debt and only $2 million in cash. The most recent restructuring saw IDXG move their preferred B shares to preferred C. The associated dilution would be around 23 million new shares (compared to 4 million currently outstanding).

We will continue to dive into the story to see what type of sales and profits the company can maintain moving forward.

Interpace Biosciences, Inc. provides molecular diagnostic tests, bioinformatics, and pathology services for evaluating cancer risk in the United States