FMI reports results

https://seekingalpha.com/news/3321574-foundation-medicine-re…

Will see how the market reacts.

Rob

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I will note they are presenting tonight at 6:30 pm eastern at the JP Morgan conference in San Fran.

The Company will also present at the 36th Annual J.P. Morgan Healthcare Conference on Monday, January 8 at 3:30 p.m. PST, in San Francisco.

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This link has the press release of the FMI results, along with the slide deck that I think they’ll be using for the presentation this evening (the 3:30 pacific; 6:30 eastern one).

http://investors.foundationmedicine.com/secfiling.cfm?filing…

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Hi,

Have no specific comment about this announcement, but I point out the comments of kas23, who seems to be an expert in the field, at:

https://seekingalpha.com/article/4135706-invitae-next-genera…

That Seeking Alpha article is not about FMI, but rather another genetic sequencing company (a competitor, if you like).

In summary, kas23 suggests avoiding the sequencing companies themselves - as the sequencing process is not patentable - and looking at the sequencing equipment companies - sequencers and kits - instead.

Regards,
Bombora

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Hi Bombora,
Besides having good sequencing equipment one also needs to have a good amount of verified data to support sequencing methodology which is a big part of getting methods approved by insurers, medicare, and medicaid. FMI has Medicare/Medicaid approval, Guardant doesn’t’. FMI has data on 180,000 clinical cases I am happy to see revenue of 70%. FMI’s test finds 4x the number of genes than its competitor. It is not a perfect test, but it provides more and better data (>300 genes) than Guardant Health (71 cancer genes).

I think a lot of the downward pressure last month was an artifact of tax selling at the end of the year. I am still long FMI calls. I expect a good week before the expiration date.

Best,

buwnkl

Bulwnkl, you planning to hold your January’s till expuration day?

I am waiting until next week with my remaining ITM $60 Jan 19 2018 call position. I actually sold some of my $70 January’s today though, locking in a net gain for that OTM strike/expiration combination with some remaining “house money”. I also have Feb. $70 and Aug $75 positions riding.

Hi volfan84,
I plan to sell the option towards the end of next week or exercise the option at expiration. I will wait and see.

Best,

bulwnkl

I too have been riding along Jan $47.50 calls. Recent price action looks decent, so I am planning to exercise and hold.

Deepinder

Hi volfan84,
I plan to sell the option towards the end of next week or exercise the option at expiration. I will wait and see.

Best,

bulwnkl

Based on this morning, looks like a good plan. FMI is up about 6.4% on the day through 2 hours of the market being open.

Combining that and the nice mornings by Square and Arista, the 9.4% up on the year at yesterday’s close is sitting at 11.7% now on market day 8 of the year. Total silliness.

https://www.cnbc.com/quotes/?symbol=FMI&tab=financials go to financials and then earnings

there is no evidence so far that FMI will ever be able to make a profit. Tess are not like software , it costs a lot more to do them a million times than to do them once. Customers are not locked in, they can always just stop using the test. And the tests could turn out like PSA , over use just leads to over surgery.

mauser, I think you might be failing to factor in one big piece of the puzzle…the FDA approval and preliminary determination that Medicare reimbursement will be allowed for FMI’s treatments. That decision came in December 2017, so has not factored in to their prior financial numbers.

As I’m sure you know, share prices are generally determined on a forward-looking basis, although the past can often provide decent input into forward guesstimates.

Silly Mauser, when has the good ol’ US of A ever wanted less testing and did less procedures?

Robotic surgery never showed a better outcome, but WE WANT IT.

TPA isn’t terribly useful (if not outright harmful) for stroke, yet it’s a cornerstone of treatment because we NEED TREATMENT NOW. HURRY AND GO TO CT SCAN. Then stay for an MRI!

Knee scopes? Blinded studies with sham surgeries have disproven their utility. BUT I NEED TO BE PAIN FREE LIKE WHEN I WAS 20!!!

seriously. Have you met an oncologist that doesn’t prefer chemo to palliative care even for the most dire cases?

Come on Mauser. You know this. Humans are consumers and gluttons.

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I saw that ruling. So did all the pros.

Medical testing is not as profitable as medical drugs. Approval does not mean they will be used especially if false positives lead to more medical costs.
I’m not trying to rain on your parade but I will need evidence that they can actually make money. ,lots of money, on these tests before investing. So far loses are rising not falling. If each test costs them $101 but they can only sell it for $100, there is a problem.

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Silly Mauser, when has the good ol’ US of A ever wanted less testing and did less procedures?

Robotic surgery never showed a better outcome, but WE WANT IT.

TPA isn’t terribly useful (if not outright harmful) for stroke, yet it’s a cornerstone of treatment because we NEED TREATMENT NOW. HURRY AND GO TO CT SCAN. Then stay for an MRI!

Knee scopes? Blinded studies with sham surgeries have disproven their utility. BUT I NEED TO BE PAIN FREE LIKE WHEN I WAS 20!!!

seriously. Have you met an oncologist that doesn’t prefer chemo to palliative care even for the most dire cases?

Come on Mauser. You know this. Humans are consumers and gluttons.

As a physician with some background in medical research, I would have to agree.

Genomics will be really big business, HUGE as the Donald would say.

And I predict it will be more beneficial than all the above.

The only uncertainties are how long it will be before it really takes off and which companies will win.

Dave

2 Likes

Hi volfan84,
I plan to sell the option towards the end of next week or exercise the option at expiration. I will wait and see.

Best,

bulwnkl

Almost insanely low volume today for FMI (41,345 as of 2:10 pm compared to a 10-day average volume of 290,000). I almost wonder if the low volume is at all indirectly related to tomorrow being options expiration day?