The shares IPO’d in June at $15 and now trade mid-single digits, a victim of the Covid ripple effect that brought elective procedures, doctor visits and even pregnancy rates to a screeching halt.
The company provides a number of genetic screening tests for fetuses and prospective parents, but its most valuable asset enables early detection of a life-threatening condition called preeclampsia which impacts 200,000 pregnancies each year… at a total cost of $9B to the US healthcare system.
Preeclampsia is a pregnancy complication appearing at 20 weeks which is characterized by high blood pressure, often resulting in damage to the mother’s liver and kidneys, as well as insufficient oxygen transfer through the placenta to the infant.
Once diagnosed, doctors have a number of treatment tools at their disposal, but early detection of preeclampsia is the real challenge. Progenity harnesses AI to give doctors plenty of warning in advance. No other company can match Progenity’s predictive algorithms.
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Separately, Progenity is developing two diagnostic tools for the gastro-intestinal tract. One is a retrievable capsule which gathers data to facilitate testing for multiple disorders, including cancer. The other is a unique drug dispensary system. Both provide additional potential upside.
At the current valuation, the stock discounts only the existing genetic screening business, which creates an attractive entry point for new investors.