Head of Saxo Strats
Summary: Cancer treatment is one of the most lucrative areas of disease treatment due to the global number of cancer cases yearly. Early detection of cancer is key in the treatment of cancer as it increases the effectiveness of cancer treatment. A new diagnosis method called liquid biopsy holds a lot of potential and Exact Sciences is leading the field with a commercial diagnosis test on colon cancer. Yesterday, the shares were up 27% on results presented at a conference showing that the company's liquid biopsy test can detect six difference cancer types in early stage from blood samples.
On the Cowen Liquid Biopsy Summit yesterday, Exact Sciences presented a breakthrough in its liquid biopsy test using blood samples to diagnose multiple cancer types (see slide from the company’s presentation) at an early stage. The company already has a commercial liquid biopsy test for detecting colon cancer and has been a true US biotechnology success story growing revenue from $39mn in 2015 to $1.13bn in 2019. The technology offers a lot of hope in cancer treatment as early detection increases the probability of successful treatment. Liquid biopsies are also much more scalable and effective than scanning of tumors or dysplasia (changes in body cells).
The share price jumped 27% on the news as the test results show the potential of this cancer diagnostics technology. Exact Sciences is leading in this new frontier of diagnosis and has 250+ R&D people working on finding cancer markers. The company has over 3,000 patents filed for these cancer markers providing a strong competitive advantage. While the company has grown revenue impressive over the past five years the company has invested heavily in R&D and production, and thus the company is still not profitable generating negative free cash flow of $240mn in the past 12 months.
2024: The wasted year
Markets are driven by election optimism, overshadowing growing debt and liquidity concerns. The 2024 elections loom large, but economic fundamentals and debt issues warrant cautious investment.
As US economic slowdown hints at a shift away from exceptionalism, USD faces downside with looming Fed cuts. AUD and NZD set to outperform as their rate cuts lag. JPY gains on carry unwind bets and BOJ pivot.
Amid AI and obesity drug excitement, equities see varied prospects: neutral on overvalued US stocks, negative on Japan due to JPY risks, positive on Europe. European defence stocks gain appeal.
With the economic slowdown, quality assets will gain favour, especially sovereign bonds up to 5 years. Central banks' potential rate cuts in Q2 suggest extending duration, despite policy and inflation concerns.
Commodities poised for rebound. The "Year of the Metal" boosts gold and silver, copper awaits rate cuts. Grains may recover, natural gas stabilises. Gold targets $2,300-$2,500/oz, copper's breakout could signal growth.
Markets are driven by election optimism, overshadowing growing debt and liquidity concerns. The 2024 elections loom large, but economic fundamentals and debt issues warrant cautious investment.
As US economic slowdown hints at a shift away from exceptionalism, USD faces downside with looming Fed cuts. AUD and NZD set to outperform as their rate cuts lag. JPY gains on carry unwind bets and BOJ pivot.
Amid AI and obesity drug excitement, equities see varied prospects: neutral on overvalued US stocks, negative on Japan due to JPY risks, positive on Europe. European defence stocks gain appeal.
With the economic slowdown, quality assets will gain favour, especially sovereign bonds up to 5 years. Central banks' potential rate cuts in Q2 suggest extending duration, despite policy and inflation concerns.
Commodities poised for rebound. The "Year of the Metal" boosts gold and silver, copper awaits rate cuts. Grains may recover, natural gas stabilises. Gold targets $2,300-$2,500/oz, copper's breakout could signal growth.
