Healthcare

Schrodinger’s platform for accelerated drug development and materials discovery

Snapshot Schrodinger (SDGR) is offering 10m shares at $14-16 for a $1B market cap. We expect the shares to perform well in part given that they are backed by two notable investors, David Shaw and Bill Gates, and they have a strong position in enabling new drug discovery and the development of new materials. It…

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One Medical and the “membership model” of delivering primary care

One Medical (NASDAQ: ONEM) is pricing their IPO tonight for trading tomorrow (Friday, January 31st.) The short story here is that this company aims to make primary care more like a business and less like a typical healthcare institution. They think about their members as customers and not patients and strive to deliver care as…

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10x Genomics Brightness Under the Clouds

10x Genomics (TXG) is a provider of the next generation of biological instruments that are described as being part par of the “single-cell revolution” They are scheduled to price their IPO this Wednesday night and have raised their pricing range to $36-38. Investors are excited about the opportunity despite an overhang of litigation in the…

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Mostly Smiles for SmileDirectClub

SmileDirectClub (SDC) is aiming to disrupt the market for improving teeth. The company is growing fast and will likely be embraced by investors. In short, SDC is trying to do for braces what has been done for contact lenses by offering a direct-to-consumer solution that doesn’t require a visit to an orthodontist. The deal is…

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Investors Try On AI-based Drug Discovery with BioXcel

Last week BioXcel Therapeutics (NASDAQ: BTAI) went public at $11. It looks like a typical biotechnology company with two drugs (BXCL501 and BXCL701) in Phase 1/2 trials for mental disorders and cancer respectively. Both drugs look fairly promising based on the data presented and we’ll get to that. But BioXcel is taking a different approach…

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NOVN Phase 3 Results for Acne

Since we originally published a full report on Novan (NASDAQ: NOVN) the company has been delivering good results – recent Phase 2 results for genital warts from HPV were positive and ready for the next step into Phase 3. The news sent the stock up from the $20 level to the $25 level. More importantly,…

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Tabula Rasa Healthcare IPO Notes

Tabula Rasa (TRHC) is a healthcare service provider with ~25%¬†sustainable growth in recurring revenue, expanding gross margins and a model that is very likely to generate 20% EBITDA margins over the long term. As you can see from the company snapshot growth is healthy. With 16.1M shares outstanding post-IPO the market capitalization is $241M at…

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Cotiviti Market Opportunity

Cotivti is ugly but appealing for investors.

Healthcare claims processing is soul-crushingly complex. Recently the number of “codes” used went up 5x to over 68,000. At the same time there is tremendous cost pressure so every insurer wants to ensure claims are accurate and enforce payment policies. Cotiviti (NYSE:COTV) is one of the dominant companies in medical billing and payments space. They…

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Intellia NTLA Jumps on CRISPR IPO Bandwagon

In February we had the Editas (EDIT) IPO which doubled promptly in the market. The entire biotechnology world is enamored with the potential of these core gene-editing technologies. One of the companies mentioned in our note: A CRISPR view of Editas was Intellia so their offering has been much anticipated. Here’s our brief note on…

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Whirly lollipop on orange background.

Hutchison China Meditech is a Monster

HCM priced their IPO on the US market (NASDAQ:HCM) at $13.50. The shares already trade in London (AIM:HCM). Investors can find plenty of details in the HCM IPO roadshow slide deck but there are some major takeaways here: China will be a huge market for healthcare – per capita spending today is $322 versus over…

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