Growing NeXT: Personalis (PSNL) Hits All-Time High

Shares of Personalis Inc. (PSNL) closed at an all-time high of $30.52 on Friday (Oct.9, 2020) and that reflects a gain of over 140 percent in 3.5 months after our stock alert.

Our stock report on PSNL titled “This Day That Year: Personalis (PSNL)” was published on June 22, 2020, when the stock was trading around $12.37.

Personalis is a cancer genomics company providing sequencing and data analysis services through its proprietary NeXT platform to support the development of cancer therapies, primarily to pharmaceutical companies, biopharmaceutical companies, universities, non-profits, and government entities.

The flagship tissue-based immunogenomics platform, known as ImmunoID NeXT, was launched in November 2018.

A major part of the revenue is derived from DNA sequencing and data analysis services that the company provides to its largest customer, the U.S. Department of Veterans Affairs (the “VA”) Million Veteran Program MVP.

News that Mattered

On August 3, the company launched NeXT Liquid Biopsy, which is designed to complement ImmunoID NeXT. Combined with ImmunoID NeXT, the NeXT Liquid Biopsy helps to assess tumor heterogeneity, monitor response to therapy, and interrogate mechanisms of resistance.

The initial deliveries of NeXT Liquid Biopsy are slated to begin this quarter, with revenue generation of the new product to commence in 2021.

On August 6, the company announced financial results for the second quarter ended June 30, 2020, reporting revenues of $19.5 million compared to $15.8 million in the year-ago period, which was well above the consensus Wall Street estimate of $16.3 million.

Despite the impact from the COVID-19 pandemic, there were strong ordering levels from both its existing and new customers, according to Personalis CEO John West.

What Next?

At the end of the second quarter, 32 customers had placed orders for NeXT compared to 26 at the end of the first quarter. With its NeXT platform being continuously adopted predominantly by large pharmaceutical customers, the company is confident about its future revenue stream.

Personalis is scheduled to report its financial results for the third quarter ended September 30, 2020, by the second week of next month.

On average, Wall Street analysts expect the company to incur a loss of $0.28 per share on revenue of $19.06 million.

The company had zero debt and total cash of $105.2 million at June 30, 2020.

PSNL has traded in a range of $4.27 to $30.95 in the last 1 year.

Given the company’s attractive historical growth, prudent balance sheet management and growing NeXT platform adoption by large pharma and advanced biotech companies, PSNL is a stock worth keeping an eye on.

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This Day That Year: Personalis (PSNL)

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