Overlooked Small Cap Healthcare Information Stocks: EVDY, FMI & CLRX

Small cap healthcare information stocks Everyday Health Inc (NYSE: EVDY), Foundation Medicine Inc (NASDAQ: FMI) and CollabRx Inc (NASDAQ: CLRX) help consumers and healthcare professionals deal with the increasing amount of information overload that comes with treating or figuring out how to treat patients.

Everyday Health Inc. A leading provider of digital health and wellness solutions, small cap Everyday Health Inc combines premier digital content from leading health brands with sophisticated data and analytics technology to provide a highly personalized and differentiated content experience to its users. During 2013, an estimated average of 43 million consumers and 500,000 healthcare professionals, including one-third of all US physicians, utilized Everyday Health Inc's health and wellness properties each month across multiple channels, including the web, mobile devices, video and social media. At the end of March, Everyday Health Inc priced its IPO of about 7.2 million shares at $14 a share to raise approximately $100.8 million. Then in mid May, shares jumped some 15% after Everyday Health Inc reported a 23% revenue rise to $37.5 million and a net loss on a GAAP basis was $7.8 million verses a net loss of $9.2 million. The CEO commented:

"During the first quarter, we executed well on our strategy of going deeper with existing clients, as evidenced by our strong growth rates in advertising and sponsorship revenue and average revenue per advertiser. We also improved our operating leverage in three key areas – editorial and product, sales and marketing, and data and analytics – which contributed to significant bottom line growth and margin expansion."

On Thursday, Everyday Health Inc fell 3.94% to $17.31 (EVDY has a 52 week trading range of $11.84 to $18.39 a share) for a market cap of $520.89 million plus the stock is up 28.2% for retail investors since the end of March.

Foundation Medicine Inc. A molecular information company dedicated to a transformation in cancer care, small cap Foundation Medicine molecular information platform aims to improve day-to-day care for patients by serving the needs of clinicians, academic researchers and drug developers to help advance the science of molecular medicine in cancer. Foundation Medicine's advantage comes from taking its data and combining it with the latest research and clinical practices to provide information to a doctor about the specific genetic makeup of their patients' cancers and potentially effective treatments using approved drugs or experimental drugs in clinical trials. At the end of May, Foundation Medicine announced new data demonstrating that its FoundationOne® fully informative genomic profile for solid tumors identified genomic alterations that prompted physicians to change therapeutic decisions for 28% of patients tested in a prospective study that is being conducted in partnership with US Oncology. The only issue with the platform (of course) will be getting insurance companies to pay for tests. On Thursday, Foundation Medicine fell 0.26% to $23.07 (FMI has a 52 week trading range of $19.51 to $45.00 a share) for a market cap of $650.39 million plus the stock is down 0.9% since the start of the year and down 34.7% since September 2013.

CollabRx Inc. A recognized leader in cloud-based expert systems to inform health care decision-making, small cap CollabRx Inc uses information technology to aggregate and contextualize the world's knowledge on genomics-based medicine with specific insights from the nation's top cancer experts starting with the area of greatest need: advanced cancers in patients who have effectively exhausted the standard of care. There is another SCN article (see: CollabRx + Affymetrix = Wow! (AFFX, CLRX)) that talks more in-depth about how there are more than 100,000 research reports on the topic of cancer and cancer treatments published over the past twelve months plus over 500 new cancer therapies in development that are part of more than 10,000 different clinical trials currently underway. This would be on top of all the information, approved drugs and treatment regimens that are already out there – meaning there is considerable information overload in the cancer space that CollabRx Inc seeks to address. CollabRx Inc has also recently announced the introduction of a new physician resource, CancerRx,™ as an IOS application designed to help oncologists and pathologists navigate the complex landscape of oncology therapeutic options. Ravi Salgia, MD, PhD, professor of Medicine at the University of Chicago and the CollabRx lung cancer Therapy Finder lead clinical advisor, commented:

"The CancerRx app provides physicians and their patients with a clear and high-level understanding of how tumor genetics are being leveraged to inform therapy development through easy to navigate, cancer specific Therapy Finder tools. This resource will allow physicians to consider all possible options in designing an optimal treatment plan for their patients."

On Thursday, CollabRx Inc closed at $2.93 (CLRX has a 52 week trading range of $2.60 to $6.75 a share) for a market cap of $5.90 million plus the stock is down 25.6% since the start of the year, down 22.3% over the past year and up 99.3% over the past five years.

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