We conducted analyses of the revenue and market capitalization of publicly-traded IVD and LDT companies (see below). Here are the key takeaways and assumptions drawn from this comparison:
– Dx product sales (IVD) grew at 3 times Dx service sales (LDT) from 2011-2013.
– Specialty LDT companies are valued for current revenue; Specialty IVD companies are valued for potential revenue.
– Specialty LDT companies are the fastest growing type of diagnostics company.
– Very few IVD companies are able to participate in public equity markets; LDT companies fare much better in this regard.
– The IVD market (as served by publicly-traded companies) is twice the size of the LDT market.
Please see the following blog posts for the data behind these conclusions:
Part 1. LDTs: A Market Perspective
Part 2. IVDs: A Market Perspective