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What does $PSNL do?
- Provide genomic sequencing and analytics (ML) platforms to enable precision medicine (i.e., personalized cancer vaccines and immunotherapies)
- Analytics unlock critical genomic information.. think how genetics drives obesity, diabetes, heart disease
What does $PSNL do?
- Provide genomic sequencing and analytics (ML) platforms to enable precision medicine (i.e., personalized cancer vaccines and immunotherapies)
- Analytics unlock critical genomic information.. think how genetics drives obesity, diabetes, heart disease
2/n
Is mgmt strong?
- Spunt out of Stanford University and IPO'd in 2019
- John West is CEO (education from MIT / Penn), key member of the founding team, prior CEO of Solexa and ViaCyte,
- Overall strong mgmt and leadership with industry experience (Illumnia, Stanford)
Is mgmt strong?
- Spunt out of Stanford University and IPO'd in 2019
- John West is CEO (education from MIT / Penn), key member of the founding team, prior CEO of Solexa and ViaCyte,
- Overall strong mgmt and leadership with industry experience (Illumnia, Stanford)
3/n
What do they offer?
Creating a genomics flywheel with their NeXT platform:
- ImmunoID NeXT: tumor profiling from tissue
- NeXT liquid biopsy: tumor profiling from plasma
- NeXT Dx/CDx: diagnostic tumor profiling
- NeXT database: massive genome sequencing database
What do they offer?
Creating a genomics flywheel with their NeXT platform:
- ImmunoID NeXT: tumor profiling from tissue
- NeXT liquid biopsy: tumor profiling from plasma
- NeXT Dx/CDx: diagnostic tumor profiling
- NeXT database: massive genome sequencing database
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Is there a potential for flywheel effect? YES
- In addition to their NeXT platform they pioneered population sequencing as a service offering which utilizes their ML-based platform to aggregate and analyze population genomic (pop gen) data.
Is there a potential for flywheel effect? YES
- In addition to their NeXT platform they pioneered population sequencing as a service offering which utilizes their ML-based platform to aggregate and analyze population genomic (pop gen) data.
5/n
continued…
- Largest pop-gen contract in the US with the Veterans Affairs to sequence and analzye whole genomes (850k veterans enrolled) of a specific population set (commonalities) for purposes of personalized medicine
- Potential to extend this offering to many nations
continued…
- Largest pop-gen contract in the US with the Veterans Affairs to sequence and analzye whole genomes (850k veterans enrolled) of a specific population set (commonalities) for purposes of personalized medicine
- Potential to extend this offering to many nations
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What are $PSNL financials?
- Revenue growth is NOT that of a momo stock. Projected revenue growth for 2020 ($78.6M) is 21% YoY as compard to 2019 ($65.2M)
- Cash on hand is $203M with $0 debt… heavy focus on re-investing for innovation
What are $PSNL financials?
- Revenue growth is NOT that of a momo stock. Projected revenue growth for 2020 ($78.6M) is 21% YoY as compard to 2019 ($65.2M)
- Cash on hand is $203M with $0 debt… heavy focus on re-investing for innovation
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What is $PSNL total addressable market?
They categorize three markets:
- $5B for biopharma customer research and development
- $14B for diagnostics
- $40B for commercialization of personalized therapeutics
Rapid customer growth: biopharmas, biotechs, entities (VA)
What is $PSNL total addressable market?
They categorize three markets:
- $5B for biopharma customer research and development
- $14B for diagnostics
- $40B for commercialization of personalized therapeutics
Rapid customer growth: biopharmas, biotechs, entities (VA)
8/n
Why I invested in $PSNL:
I invest based on four key principles, and $PSNL checks off all the boxes:
1) Is the company I am investing in part of a major megatrend (growing TAM)?
2) Does the company utilize "data" for their growth and product offering? … continued
Why I invested in $PSNL:
I invest based on four key principles, and $PSNL checks off all the boxes:
1) Is the company I am investing in part of a major megatrend (growing TAM)?
2) Does the company utilize "data" for their growth and product offering?
… continued
3) Is the management team strong and have they proven strong operational execution?
4) Is the company reinvesting within their business and do they utilize a flywheel approach to ensure they can cross sell to customers?
4) Is the company reinvesting within their business and do they utilize a flywheel approach to ensure they can cross sell to customers?
Big thanks to @hiddensmallcaps @sbarnettARK @TerraPharma1 @Pharmdca for their constant information sharing on $PSNL which inspired me to do my own homework on the company and build my own conviction.
