They have a lot of good things going on, high growth, large market (of which they only have 5%), many other potential catalysts for continued growth, anyone else following or have any more analysis/comments?
Thanks for the update!
I have a small position but would consider adding if the growth picture after the acquisition becomes clearer. Genomic Health had a much lower growth rate so this may dampen growth. On the other hand, the acquisition significantly broadens their product offerings and strengthens their competitive position. I would also hope that their sales force could help accelerate growth in the former Genomic Health products. There will likely be some synergies.
As a physician, I like the area that they are in which is on the forefront of cancer diagnostics and growing well. They have a large and growing TAM.
If they are able to maintain growth above 50% after the acquisition, they are attractively priced and I will add. Clarity on post-acquisition growth and the catalyst you mentioned should drive superior price appreciation.
Dave