Dutton Associates updates its coverage of Vermillion (Nasdaq:VRML) maintaining a Strong Speculative Buy rating and a 12-month target price of $2. The 17-page report by Dutton senior analyst Randy Wilson is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and other leading financial portals.
Vermillion is a molecular diagnostics company focused on the development and commercialization of proprietary, high-value diagnostic tests to help physicians diagnose, select appropriate treatments, and improve outcomes for patients. Vermillion is focused on the continued development of new proteomic analysis technologies and tools to investigate the human proteome. The Company's demonstrated ability to develop new proteomic analysis technologies and tools represents an important competitive advantage because these same protein separation technologies and tools are utilized to analyze clinical samples to identify novel biomarkers and patterns of biomarkers associated with disease. A strategic alliance with Quest Diagnostics and a partnership with Bio-Rad Laboratories have resulted in a major transformation at Vermillion that is ongoing. The Quest Diagnostics alliance and the Bio-Rad partnership have positioned Vermillion to concentrate resources on protein biomarker discovery and the development of protein biomarker diagnostic tests while still gaining benefits from its past investment in protein-based technology. Vermillion's core strengths are its broad-based technology platform and ongoing R&D effort, its strategic alliance with Quest Diagnostics, its extremely productive collaborations with clinicians and researchers at prominent medical institutions, and its multiple diagnostic tests in late-stage development or clinical testing that are expected to have very large commercial potential. Even allowing for the risks of a developmental-stage company with minimal revenue in 2007, and expectations of continued losses in 2007 and 2008, the stock's market capitalization appears to be very modest relative to its longer-term earnings potential.
About Dutton Associates
Dutton Associates is one of the largest independent investment research firms in the U.S. Its 30 senior analysts are primarily CFAs and have expertise in many industries. Dutton & Associates provides continuing analyst coverage of over 140 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors.
The cost of enrollment in our one-year continuing research program is US $35,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received $39,500 from the Company for 4 Research Reports with coverage commencing on 3/28/07. The Firm does not accept any equity compensation. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.
Dutton Associates
John M. Dutton, 916-941-8119
Quelle B.Wiere 06.01.2008
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