Versant points to partnering potential at GeneNews

Versant Partners likes the “performance metrics” of GeneNews’ ColonSentry test for colorectal cancer and figures it “could be attractive to cash-contributing partners,” particularly those well-positioned to act on a U.S. regulatory strategy.

“Multiple industry players like Gen-Probe or Genomic Health, or lab services giants like Quest or LabCorp, could benefit from an expanded test offering that ColonSentry confers,” analyst Doug Loe writes in a new research report.

He points out, for example, that German-based Epigenomics AG has a market value of about 91 million euros on the basis of a septin-9 blood-based colon cancer test, which is partnered with Quest.  This provides a “reasonable level for GeneNews value on delineating a U.S. testing strategy and soliciting partnership interest,” he adds.

Markham, Ont.-based GeneNews (TSX:GEN) has a current market value of around $38-million fully-diluted.  Mr. Loe maintained a “neutral” rating on the stock and 12-month target price of 50 cents.

Mr. Loe also contends that partners will likely be encouraged by a strong intellectual property position covering GeneNews’ Sentinel Principle for messenger RNA identification in blood, notably an important patent that was issued last month.