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LDT Companies Out-Perform IVD Companies

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Last week we posted an analysis of the growth rates and market caps for companies that develop IVD tests (which was in itself a follow-up to some analyses from a couple of years ago).  This week we are presenting the same analysis for developers of lab-developed tests (LDTs).  On both of the analyses we have segmented the companies based on whether they are “Comprehensive” developers (i.e. they offer very broad test menus), or “Specialty” developers (i.e. they offer a small number of proprietary tests).
Since the 2014 analysis, all of the Comprehensive developers have experienced solidly increasing revenue growth, and very pronounced increases in market cap.  For the revenue growth, this is the opposite of what was observed for the IVD developers, all of which experienced a decline in revenue growth since the l2014 analysis.
For the Specialty LDT developers, revenue growth has been less consistent.  Over half of the companies in the sample had declining or flat revenue growth over the last several years.  Unlike their contemporaries on the IVD side, however, the Specialty LDT developers generally experienced positive increases in market cap.
For an upcoming post we will compare the dynamics for these market segments and posit some ideas for variability in growth and valuation.