Thanks all for your feedback, good to get positive/negative thoughts to test ones own conviction. I hope this company does fit the boards rules for further discussion.
Here are my thoughts to some points raised above.
“Do we know if the accuracy has been demonstrated in large scale trials? ( >10 k sample)”
They have mentioned biopsy provide 83% accuracy as compared to their PLA tests which are 99%. Having been endorsed by the National Comprehensive Cancer Network, I assume yes??
“Dermatologists earn more from doing biopsies so there will be reluctance.”
These tests allow dermatologists to see more patients that actually have cancer. So DMTK are saying the billings are neutral to dermatologist. I tend to beleive them due to the accelerated number of clinics they are onboarding during a pandemic. In addtion they have released two independent economic studies which conclude DMTK has a product which takes cost out of the healthcare system. I beleive this is quite special.
“While they may continue the high level of growth, their variable costs will continue to grow too (albeit at a slower rate than revenues)”
The Assay Gross Margin in Q1-2020 was -46% and in Q1-2021 was 10%, doesn’t that show the leverage?