360Dx Top 30 Falls 4 Percent in February

NEW YORK – The 360Dx Top 30 fell 4 percent in February after a slight uptick in January.

The Top 30 mirrored the broader market as the Dow Jones Industrial Average decreased 4 percent month over month, while the Nasdaq ticked down 1 percent. The Nasdaq Biotech Index also decreased nearly 7 percent.

The Top 30's highest gainers were NeoGenomics (+42 percent), LumiraDx (+19 percent), and Natera (+13 percent). The decliners were led by DermTech (-28 percent), Accelerate Diagnostics (-26 percent), and Cue Health (-18 percent).

NeoGenomics benefited last month from positive early data for use of its Radar minimal residual disease test in bladder cancer, as well as solid quarterly financial results. Data published in Nature Medicine found that the test could be used to help inform the choice to perform or avoid cystectomy in patients with bladder cancer, and although it is preliminary, the firm believes it can move forward with additional validation studies and, eventually, pursue bladder cancer as a clinical testing indication.

The company also saw its stock price rise after announcing its Q4 and full-year 2022 financial results late last month. NeoGenomics reported that its Q4 revenues rose 10 percent year over year, while full-year revenues grew 5 percent, both beating Wall Street analysts' average expectations. The firm revamped its growth strategy and executive team in 2022, and Dan Brennan, an analyst with Cowen, wrote in a note to investors that he sees the firm as "well set up for growth acceleration and return to profitability under new management."

Another gainer, LumiraDx, saw its share price grow after announcing that its COVID-19 and influenza A/B combination test received Emergency Use Authorization from the US Food and Drug Administration and UK Health Security Agency Coronavirus Test Approvals process validation. The laboratory-based test detects and differentiates the viruses within 20 minutes and received CE marking in June.

Like NeoGenomics, Natera was also buoyed by its announcement of improved financial results. Earlier this week, the company reported that its Q4 revenues increased 26 percent compared to the previous year and that full-year 2022 revenues rose 31 percent. The firm's product sales rose 28 percent and were the main contributor to the overall increase in revenues, it said.

Natera also saw its share price increase after announcing the Centers for Medicare and Medicaid Services' MolDx program determined its Signatera test met coverage requirements for adjuvant and recurrence monitoring in patients with stage IIb or higher breast cancer. Shares surged as much as 16 percent the morning after the announcement. The test previously received coverage for the test's use in colorectal cancer, muscle-invasive bladder cancer, and pan-cancer immunotherapy monitoring.

Among the decliners, DermTech's only news in February was that the foundational assay of its DermTech Melanoma Test is now available to more than 9 million clients of the Veterans Health Administration after receiving a favorable coverage recommendation from the US General Services Administration. In a note to investors, BTIG analyst Mark Massaro said that the firm has "built big momentum" with government payors recently and that "the signing of its first major national payor (likely in 2023) will be the biggest catalyst in the company's history."

Neither Accelerate Diagnostics nor Cue Health had significant news last month but, like DermTech, both have relatively low share prices that can magnify losses and gains percentage-wise.

*Bio-Techne paid a dividend of $.08 per share on Feb. 10.

**Labcorp paid a dividend of $.72 per share on Feb. 22.