Biodesix: 5 Reasons to Bet on Data-Driven Diagnostics

Of late we have been focusing our attention on the evaluation of under followed smaller capitalization stocks set to benefit from certain structural changes in their respective industries, notes Matthew Castel, a Montreal-based money manager at Logos LP. We believe Biodesix (BDSX) offers an interesting risk/reward. This is a data-driven diagnostics company that has developed a proprietary AI platform called the Diagnostic Cortex to discover innovative diagnostic tests for clinical use, with particular focus on the lung. The particular problem that their platform solves is what researchers call'overfitting': this is when machine learning-based biological discoveries cannot be repeated or assessed in additional specimen cohorts (ie. the machine can identify something in a genomic dataset but not in a proteomics dataset). Travel restrictions and delayed ramp up were all headwinds in the beginning of the year but that should subside in the back half.