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CareDx: A GameChanger for Transplant Patients
08/10/2020 5:00 am EST
AlloSure does not require the prior genotyping of either the patient or the donor, and it also offers a patient rejection rule-out test.
The company just recently reported second-quarter earnings. Revenues were much better than expected, up 33% to $41.8 million compared to expectations of $36 million.
There has been continued strength in AlloSure testing for transplant patients and a very rapid customer acceptance of RemoTraC monitoring service.
RemoTraC, which was introduced on March 17, accounted for 40% of monitoring results in the quarter as patients were eager to avoid hospital visits due to COVID-19.
On an adjusted basis, the company earned $0.04 a share in the quarter vs. breakeven last year and $0.08 better than expectations. However, if you exclude government payments from the CARES relief act, results in the quarter were in line as start-spending for RemoTraC narrowed operating margins.
This was an encouraging quarter for the company, especially due to some of the newer products, such as a new matching system for donors and patients that just received government approval.
CDNA still has a lot of growth potential ahead of it, and I expect the stock to continue to do well. CDNA is a buy below $34. My target is $40 per share.
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