Maxim Group initiated coverage of SeqLL (NASDAQ:SQL) with a “buy” rating and price target of $3. The stock closed at $1.60 on Feb. 8.
SeqLL is developing true single molecule sequencing (tSMS), a type of short-read sequencing that doesn’t require PCR amplification and library prep steps, thereby eliminating associated bias in the sequencing output, writes analyst Michael Okunewitch.
Mr. Okunewitch said tSMS is not a new technology as it was developed by SeqLL’s predecessor. “What is new is the strategy, partnering with research institutions to create novel diagnostics that leverage the high accuracy and sensitivity of tSMS for applications that require precise quantification of sequences and transcripts, or where the target is in low abundance. Essentially, tSMS targets a niche in sequencing where other methods fall short.”
Mr. Okunewitch has identified two programs as potential nearer-term value drivers: the coronary artery disease assay and the nucleosome sequencing-based early cancer diagnostic. Additional updates for coronary artery disease and a publication for the nucleosome platform are expected in the first half of 2022, he added.
“With SeqLL’s application-specific approach, we see the potential for a number of high-value diagnostic platforms to emerge across cancer diagnostics, early disease detection, and liquid biopsy where tSMS can provide an answer that others cannot,” Mr. Okunewitch said.
