William Blair & Company initiated research coverage of Lucira Health, Inc. (LHDX $19.31). Lucira has developed on-the-spot molecular testing for infectious diseases with a single-use system, powered by two AA batteries, that fits in the palm of a hand. The company’s first target is for COVID-19, and the team is seeking to expand its menu into other respiratory diseases and potentially sexually transmitted infections.
Analyst Brian Weinstein estimated that Lucira would generate revenue of $225.1 million in 2021, $324.8 million in 2022, and $475.5 million in 2023.
“Lucira’s first test addresses a large, underserved, and important market for which the durability is underestimated,” Weinstein said. “For now, the Lucira Health investment thesis is largely tied to the success of the company’s first product, a test solution for COVID-19 approved in the point of care and for prescription at-home markets. Today, testing in these markets focuses on confirmation of positive status (active infection), but should see new use-cases that aim to help confirm negative status. Thus, we believe testing should be part of a return to pre-pandemic normalcy, which may not be appreciated merely by looking at daily testing numbers.”
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