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No. of Recommendations: 6
Cross post from another thread...

If TTD gets low enough I might add
Personally if I hadn't already reached a full position in TTD I would be scooping it up. At 8% (or what was an 8% holding), I have other top up priorities.

What to buy today?
Well I swapped out my Arista Networks (down 1% at the time), to load up on:
MDB ~ $145 and take this towards a 5% holding
EXAS ~ $104 and get a starter position of 1% established
NVTA ~ $25 and again get a starter position of ~1% established

Whilst at the time I was very happy about getting some MDB at 145 so far from the 52 week high and at a reasonable valuation proportion. However the Exact Science (EXAS) purchase proved to be the buy of the day.

A beat and beat on their results with 100% growth rate with an $800m run rate company is outstanding but to top that they announced the acquisition of Genomics Health - one of the global leaders in cancer genetic testing for $2.8bn to create a $1bn run rate company at ~$20bn market cap and cement a true global leadership position in genetic testing. Genomics Health's results were also a beat and beat with accelerated growth. The acquisition rationale was less about the cost synergy more about the revenue synergy, shared infrastructure platform, customer relationship synergy and earnings synergy.

https://seekingalpha.com/article/4278708-exact-sciences-corp...

The share price dropped back from 117 to 101 and returned to 117 by end of day and then moved higher to 120 after hours. Clearly the analysts warmed to the results and the merger as the day went on.

As for what to make of Genomics Health:-

1) Their product Oncotype Dx is globally established as a leading product. It has clinical adoption and also support for private health insurance reimbursement coverage that some of the NGS players are finding hard to compete with, (I know this first hand from the Singapore Oncology & private health insurance scene).

2) Their growth rate re-accelerated to 19% this last Q and I expect it could improve further in combination with EXAS, however they are looking to release the next line of products that they have been working on which should re-invigorate growth.

3) The synergies of Genomic Health's US sales force, Genomic health's international infrastructure, Exact Sciences' Pfizer agreement and the combined products covering 3 of the major tumour types is huge.

I'm very happy with this acquisition.

Ant
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