- HC Wainwright initiated coverage on Germany-based Centogene NV CNTG with a Buy rating and a price target of $2.50.
- Centogene is a diagnostics company. According to management, Centogene offers the broadest diagnostic testing portfolio for rare diseases, covering over 19,000 genes using over 10,000 different tests.
- The analyst notes that the company intends to strengthen its position in rare diseases by continuing to build its BioDatabank as the world's most comprehensive repository of rare disease patient data.
- Centogene aims to fully execute it's existing over 20 ongoing partnerships and target approximately 20 new pipeline deals. In addition, the company may establish and pursue its discovery programs or co-invest in partnered programs.
- The company's core revenue (Diagnostics and Pharma) was €43.5 million in 2021. Management has guided that 2022 revenue would be €50-52 million with a growth rate of 15-20% Y/Y.
- In 2021, the company's COVID-19 testing sales reached €146.4 million, falling to €19.5 million in 1Q22.
- Due to declining demand, the company discontinued the COVID-19 business at the end of March 2022, generating significant pressure on the share price.
- The analyst says that the management made a sound decision to focus on the core business that provides substantial growth opportunities, citing the continued decline in COVID-19 testing.
- The current share price represents an attractive entry point.
- Price Action: CNTG shares are up 6.40% at $0.80 on the last check Wednesday.
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