Platform stocks, especially specialists in the healthcare sector, have many attractions. Not least excellent unit economics, high barriers to entry, scalability and strong USPs.
This is the case with Verici Dx (VRCI ) - a developer of next generation, blood/AI & RNA based immunodiagnostics to better predict & assess a patient's pre/post kidney transplant response/acceptance.
Today in a major scientific break-through, the company announced that after an extensive 15 month blinded trial involving 14 sites. Its post surgery test (ie Tuteva - $420m+ TAM) had demonstrated a “significantly higher Positive Predictive Value (PPV) for acute rejection (incl ‘below the surface’ organ degradation ie sub-clinical) than currently available blood tests across a broad population.”
This is terrific news.
Not only for the c. 300,000 patients waiting for kidney transplants worldwide, with only 100,000 operations performed each year (split 25% US, 25% Europe & 50% RoW).
But also for the company, which remains firmly on track to launch the product in the US later this year.
Indeed, the findings are particularly impressive given that the validation study utilised a generalised 'all-comers' patient population, rather than a specific subgroup. Reflecting the wide clinical applicability of the test for comprehensive commercial adoption in a real-world setting.
Importantly too - with the underlying science of the ‘Platform’ now ‘proven’. These results should hopefully open the door to similar outcomes for its other 2 lead tests. Firstly Clarava, a pre-transplant prognostic for identifying early acute rejection (results soon). Followed by Protega, a liquid biopsy that aims to predict the risk of fibrosis and long-term graft failure.
But that’s not all.
Due to the quality & depth of Verici Dx’s platform. There’s even scope to sell this unique RNA signature/profiling data (eg histopathology imagery & the analysis of whole transcriptome) to outside 3rd parties for research (eg auto-immune) & therapeutic development (eg clinical trial stratification) purposes, &/or monitoring patient studies post approval.
Wrt the numbers, house broker Singer Capital Markets expect 1st revenues this year ($0.2m) rising to $2.7m in 2023, & have a 65p ‘risk adjusted’ target price for the stock vs 31p today.
CEO Sara Barrington adding “[Our] underlying technology is proving to be clinically ground breaking. We look forward to presenting the full data at the American Transplant Congress in June."