BTIG initiated coverage of Quotient (NASDAQ:QTNT) with a “buy” rating and $22 price target. The stock closed at $6.26 on April 17.
British-based Quotient develops and commercializes tests for blood grouping and serological disease screening, commonly referred to as transfusion diagnostics.
Analyst Karen Koski writes that based on a recent visit to Quotient’s microarray manufacturing facility in Eysins, Switzerland, “after a few commercialization delays, we are cautiously optimistic that Quotient has worked out the kinks.”
She doubts that a successful launch of MosiaQ in the next 12-to-24 months is priced into shares, and “though we can’t rule out further delays – and even expect additional minor hiccups – we see a favorable risk/reward.”
Ms. Koski views MosiaQ as a transformative solution for the innovation-starved multibillion-dollar transfusion diagnostics market. “By enabling the consolidation of multiple automated instruments onto one platform and reducing manual testing methods, we think MosiaQ can improve the operations of blood centers, while enabling better medicine and cutting costs,” she added.
Ms. Koski said the successful completion of European field trials and the commencement of U.S. field trials later this year should serve as significant de-risking events for shares.
She said the transfusion diagnostics market is dominated by a handful of well-capitalized players, all of which have much to lose if Quotient is successful. “Once Quotient obtains regulatory approvals, demonstrates the ability to scale up the MosiaQ microarray manufacturing system, and begins to gain commercial traction, we think it is highly unlikely the company remains independent.”
