My understanding is RRP of $225-$250 per test with Net margin to HTX in the vicinty of 15%...issue here is volume as Ovarian cancer testing has not got any traction from the clinical community as no comprehensive screening studies have been completed. HPV/Cervical cancer had the ALTS study that was sponsored by the NCI. Until such a study is completed for an Ovarian Cancer screening test the market is going to be niche.
HTX may be able to achieve profitability but IMO will only ever be mid single digit at best...(ie $4-$5m) and it will need to generate $50m pa is sales to do that as it appears that they've outsourced a lot of their potential margin.
LabCorp's Ovasure test which was pulled last year had generated slightly better data than OvPlex to date.
HTX Price at posting:
11.5¢ Sentiment: None Disclosure: Held
