SeeThruEquity Initiates Coverage on Great Basin Scientific Inc. (NASDAQ: GBSN) with a Price Target of $9.38

NEW YORK, NY / ACCESSWIRE / July 27, 2015 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced it has initiated coverage of Great Basin Scientific Inc. (NASDAQ: GBSN) with a 12 month price target of $9.38.

The report is available here: GBSN Initiation Report. SeeThruEquity is an approved equity research contributor on Thomson First Call, Capital IQ, FactSet, and Zack’s. The report will be available on these platforms. The firm also contributes its estimates to Thomson Estimates, the leading estimates platform on Wall Street.

GBSN is a molecular diagnostics testing company that develops, manufactures and commercializes its molecular diagnostic platforms for affordable and reliable infectious disease tests, mainly for small to medium sized hospitals. The Company sells its diagnostic tests through a direct sales force in the United States, as well as through distributors in the European Union and New Zealand. Great Basin Scientific Inc. is headquartered in Salt Lake City, Utah. In April 2015, GBSN received FDA clearance for Group B Strep molecular diagnostic assay. Group B Strep was GBSN’s second assay approved by FDA after the C. diff test was approved in May 2012. GBSN has additional assays in clinical trials and assays under development. GBSN holds trade secrets, copyrights, contractual provisions and technical measures to sustain and improve its competitive position with regards to intellectual property.

“We are intrigued by Great Basin’s focus on small-and-medium sized hospitals, as the company believes it’s a fast-growing market due to an increasing number of hospitals replacing their less accurate testing formats to more accurate molecular diagnostic testing. Its cost-effective platform is well positioned to satisfy the medical needs from these hospitals,” commented Ajay Tandon, CEO of SeeThruEquity. “We are initiating coverage with a 12-month price target of $9.38 per share.”

Additional highlights from the report are as follows:

GBSN’s Clear Market Focus on Small-and-Medium Sized Hospitals

In 2012, around 86% (4,900 out of 5,700) of all hospitals in the United States were under 400 beds, which are known as small-and-medium sized hospitals. The total number of small-and-medium sized hospitals is growing significantly every year. Additionally, fewer than half of those smaller hospitals have made the switch to molecular methods for diagnosing infectious disease for its high accuracy, easy-to-use, and speedy characteristics. GBSN is leveraging its low-cost platform to quickly penetrate a variety of health care companies, with a focus on the small-and-medium sized hospitals. The affordable molecular diagnostic testing systems help these hospitals to improve their testing accuracy and to offer their patients more affordable service, as well. GBSN is growing its sales force domestically and internationally to meet the larger demand. GBSN expects the increasing number of customers will consume more diagnostic cartridges it designs and bring more revenue to the company in the foreseeable future.

Expand Menu of Molecular Diagnostic Assays to Grow Revenue

To meet the growing medical needs, GBSN will expand its assay menu to include the five additional assays currently under development, bringing more commercial opportunities to the Company. GBSN estimates the total domestic market opportunity is about $1.3 to $1.6 billion. Specifically, for the available C. diff test, the entire annual market revenue is roughly $110 to $120 million. For Group B Strep that was recently approved, the overall potential market is $80 to $120 million annually. Group B has just commercially launched and various hospitals and laboratories are evaluating this diagnostic for use, while two US laboratories have already adopted this accurate and cost saving strep test. Staphylococcus Blood Infection Pane that is under development accounts for a total market of $100 to $150 million annually, Staphylococcus Aureus Pre-Surgical Screening is estimated at $800 to $900 million annually, and Food Borne Pathogens Panel is expected to generate $150 to $200 million annually.

Automation and Volume Purchasing to Reduce Cost of Sales

GBSN manufactures its proprietary diagnostic cartridges and analyzers at its headquarters in Salt Lake City. The Company currently hand-builds its diagnostic cartridges and purchase materials at higher per unit cost due to lower purchase volumes. GBSN is investing in automating portions of the manufacturing and assembly process and volume purchase pricing.

Initiate coverage with a price target of $9.38

Our analysis indicates a fair value estimate of $9.38 per share, implying an upside of 281.3% from the recent price of $2.46.

Please review important disclosures on our website at www.seethruequity.com.

About Great Basin Scientific Inc.

Great Basin Scientific is a molecular diagnostics company that commercializes breakthrough chip-based technologies. The Company is dedicated to the development of simple, yet powerful, sample-to-result technology and products that provide fast, multiple-pathogen diagnoses of infectious diseases. The Company’s vision is to make molecular diagnostic testing so simple and cost-effective that every patient will be tested for every serious infection, reducing misdiagnoses and significantly limiting the spread of infectious disease.

For more information on the Company, its products and services, please visit www.gbscience.com.

About SeeThruEquity

SeeThruEquity is an equity research and corporate access firm focused on companies with less than $1 billion in market capitalization. The research is not paid for and is unbiased. The company does not conduct any investment banking or commission based business. SeeThruEquity is approved to contribute its research to Thomson One Analytics (First Call), Capital IQ, FactSet, Zacks, and distribute its research to its database of opt-in investors. The company also contributes its estimates to Thomson Estimates, the leading estimates platform on Wall Street.

For more information visit www.seethruequity.com.

Contact:

Ajay Tandon
SeeThruEquity
info@seethruequity.com

SOURCE: SeeThruEquity

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