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Maxim Shares Two Cents on Interpace Diagnostics (IDXG) Following Expansion of Reimbursement Contract


Interpace Diagnostics (NASDAQ:IDXG) shares ticked higher today, after the pathology services and molecular diagnostic tests firm announced that Blue Cross Blue Shield of Florida, the largest health plan in Florida, has agreed to cover Interpace’s combination thyroid molecular-based tests, ThyGenX and ThyraMIR. The assays are now covered for thyroid modules deemed indeterminate by standard cytopathology analysis for Florida Blue’s more than three million members.

Maxim analyst Caroline Palomeque commented, “Interpace is focused on growing its molecular testing franchise through organic growth; expansion of reimbursement coverage, partnerships and contracts. We see the thyroid platform as the long-term driver of the company with PancraGEN revenue also continuing to grow and providing a foundation. BarreGEN should find a partner and don’t forget RespriDx, which could be a significant opportunity as well.”

“The thyroid molecular test platform now makes up 60% of revenue, while the pancreatic cancer tests makeup 40%. Interpace’s diagnostics platform generated $16M in 2017 and already generated $4.8M in 1Q18. We expect revenues to reach ~$20M in 2018. The company currently has $12.6M in cash and no debt,” the analyst added.

Net net, Palomeque reiterates a Buy rating on Interpace shares, with a price target of $3.00, which implies an upside of 239% from current levels.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Caroline Palomeque has a yearly average return of -8.2% and a 50% success rate. Palomeque has a 0.9% average return when recommending IDXG, and is ranked #4499 out of 4828 analysts.

Aside from this rating, IDXG has only received one other analyst rating in the last three months. H.C. Wainwright analyst Ram Selvaraju has a Buy rating on the stock with a relatively bullish $3.00 price target- suggesting that he is aligned with Palomeque’s current take on this stock.

Interpace Diagnostics is a fully integrated commercial and bioinformatics company that provides clinically useful molecular diagnostic tests and pathology services for evaluating risk of cancer by leveraging the latest technology in personalized medicine for better patient diagnosis and management.