SomaLogic stock: biopharmaceutical company with excellent potential (NASDAQ: SLGC)

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SomaLogic, Inc. (NASDAQ: SLGC) is a biopharmaceutical company that studies protein biomarkers. This allows health and disease to be monitored based on changes in specific protein samples. The Company’s State-of-the-Art SomaScan Platform Offers the Ability to Identify and Monitor Specific Proteins Markers. This knowledge will allow drugmakers to target specific proteins with their treatments, enabling faster and more effective treatment methods for a plethora of distinct diseases and conditions. Due to the versatility of the SomaScan system, its platform is one of the most efficient and accessible research data platforms in the biopharmaceutical markets.

SLGC Stock Price Chart

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This article will show that despite the newness of SomaLogic Inc in the market, it has all the characteristics of a viable and valuable company. With strong financials showing growth in its first two full years of operation, the company is clearly well managed. The most intriguing part of the company is that its SomaScan technology makes it a valuable centerpiece in a number of different drug markets. This type of general demand is sure to continue to increase as more information becomes available, which could skyrocket the value of the company. These factors demonstrate that SomaLogic represents a rare, low-risk, buy-now stock in the biopharmaceutical industry that investors should consider adding to their portfolio.

Versatility is a key factor

One of the critical factors in this company’s value is the versatility and breadth of its brand platform. SomaScan technologies represent a multitude of possibilities in a wide variety of markets. When you look at the diseases associated with the buildup of specific proteins, you find a variety of very deadly common diseases that lack effective treatment options. Cancer, Alzheimer’s disease and cardiovascular disease are among the most studied diseases. Since many of these diseases can be traced to the accumulation of specific proteins, the ability to scan the body and isolate these proteins becomes essential to developing effective treatments.

The SomaScan technology platform is highly sought after by pharmaceutical companies seeking to develop a treatment for a myriad of specific diseases. Cancer treatments are by far one of the most lucrative, along with drugs and treatments for Alzheimer’s disease, primarily due to the high failure rate associated with development. If SomaScan technology could be an essential element attached to the development of these treatments, then it could revolutionize medicine. This could skyrocket the business to unprecedented levels of profit.

Market Outlook

Although the company has ties to several segments of the biopharmaceutical industry, it is essential to examine the most relevant markets to gain insight into potential future viability. In the case of SomaLogic Inc., these markets are represented by diseases for which SomaScan technologies are best suited to contribute to treatment options.

the global cancer drug market was valued at $136 billion in 2020 and is expected to grow at a high CAGR of 7.2% through 2030. At this rate, the market capitalization would reach an incredible $272 billion. The major market drivers for this industry are predictable. First and foremost, it is a high demand industry with a low supply. Cancer rates are increasing worldwide and there are not enough effective treatments available on the market to treat a large number of variations, stages and types of cancer. If SomaLogic were to help crack the cancer code and get attached to effective treatment options for cancers, it would be very lucrative.

the Alzheimer’s disease drug market was valued at $6.5 billion in 2021. It is expected to reach an impressive $25 billion in 2027, growing 17.5%. It is one of the most lucrative markets in the biopharmaceutical industry simply because of drug failure rates of 99.6%. Although the discovery of protein buildup as the root cause of Alzheimer’s disease has renewed the belief that other treatments are imminent, none have materialized in recent times. Like the cancer market, the main drivers of this market are high supply to low demand, with an increase in diagnoses. These factors again make any treatment development extremely lucrative.

the cardiovascular disease market is the least lucrative of the three markets but is not without its advantages. While the market is expected to reach a solid $146.4 billion in 2022, it has a slow projected CAGR of just 1.8%. What helps the market is that it covers a wide range of heart conditions; however, the downside is that only a small handful of these diseases are explicitly linked to protein accumulation. So, while the market is large, resulting in its large capitalization, SomaLogic would only be involved in a very small segment of this slow-moving market. In other words, it provides nice stability for the business floor but provides limited benefit.

Financial overview

SomaLogic Revenue and Asset Projection

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The company’s revenue has increased from 2020 to 2021. In 2020, the company recorded a respectable revenue of $55.8 million. In 2021, that number has grown to an impressiveand $81.6 million. OEven though this is a small sample size, the fact that the company has shown a high degree of growth in such a short period of time leads me to believe that it will only continue to grow. Another encouraging aspect is that profits exceed 50% of turnover, which is an extremely favorable rate. In 2020, the company made $33 million in gross profit. That number increased in 2021, with the company ending the year with $48 million in gross profit.

SomaLogic net income and price

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However, the net profit throws a bit of a drag on the company’s income statement. Although the company has increased its profits and revenues well, it has not yet calculated its operating expenses. Despite its strong revenue and gross margin figures, the company’s net profit has remained negative for the past two years. In 2020, the company recorded a net income loss of $53 million. In 2021, he followed that up with a second straight net income loss of $87.5 million. While troubling, with all of SomaLogic’s potential offerings, investors need to trust that the company will figure out how to get net income online.

The company has been very successful in repaying its debt. In 2020, the company had $34 million in debt. In 2021, this debt has been fully repaid. This shows a sense of fiscal responsibility within the company, leaving its options open moving forward. In addition to paying off debt, the company has also done a great job building up cash. In 2020, the company held just under $165 million in cash. By the end of 2021, that number had jumped to $439.5 million. This gives the company stability and flexibility, signs of good management, which is a positive sign for the future.

SomaLogic Cash and Assets Table

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SomaLogic has also done a tremendous job in growing the company’s assets. Retaining and growing a rich portfolio is an essential aspect of a company’s longevity. In 2020, the company had $242 million in assets. By 2021, that number had grown to $706 million. Seen in this light, it is easy to explain the difficulties of net income when a large portion of operating expenses has been devoted to expansion. Overall, the financial statements tell the story of a company that is on solid ground and pursuing massive growth. This is a very positive trend for the future potential of the company.

Conclusion

SomaLogic, Inc. is a newly listed biopharmaceutical company heading for a meteoric rise in the market. Their technology sets them apart from all others in their industry. This allows them to have their hands on almost every aspect of the drug market, making its potential truly enticing. The SomaScan technology they lease to companies provides key insights into developing treatments for some of the world’s most prevalent diseases. If a breakthrough is imminent, it will come through SomaLife technologies. This only underlines the importance of this company in the market. The financials show a steadily growing company, and I expect that to continue to be the case. Over the next ten years, it could prove to be an incredibly valuable business, making it a prime target for biopharma investors looking to add to their portfolio.