Cepheid: Biotech Targets Toxins

11/04/2014 8:00 am EST

Focus: STOCKS

Jim Powell

Principal Analyst, Global Changes & Opportunities

Investors comfortable with volatile stocks should consider this leading provider of diagnostic systems for detecting toxins and biological substances, explains Jim Powell, editor of Global Changes & Opportunities Report.

The biological substances that can be diagnosed by Cepheid (CPHD) include those most likely to be used by terrorists.

Although the company has not announced that it is working on an Ebola kit, it would be a natural addition to the tests it has already developed for US government law enforcement and anti-terrorism agencies.

In the wake of ISIS’ threats and the emergence of Ebola, I think the demand for test kits among both public and private organizations will greatly increase.

Cepheid’s diagnostic kits combine DNA identification with microelectronic processing to quickly scan samples of blood, urine, and tissues for the presence of disease agents, illegal drugs, or poisons.

The tests may be done in the field using small disposable cartridges. Because test results appear quickly, the kits have great value in identifying problems before they can get out of control.

Cepheid is also a leader in hospital and laboratory diagnostic tests. A variety of testing solutions have been developed for infections, biothreats, oncology, genetics, women’s health, and several other fields.

As is true of many prominent biotech companies, Cepheid is not yet profitable and must be considered a speculation. Nevertheless, the stock is up 43.3% since my February 2008 recommendation, and its future appears to be even more promising.

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