Theranos, the biotech company that is about to break ground on its $20-billion IPO, has its sights set on the big money in the pharmaceutical market, analysts said on Wednesday.
“I would expect Theranos to have a significant market share in the pharma industry in 2019 and 2020,” said Peter M. Doshi, senior analyst at research firm Renaissance Technologies.
“They will have a much more active presence than they have at the moment, and I expect them to dominate in the industry for a while.”
Doshi also predicted that Theranos’ IPO would have the potential to generate $100 billion in revenue.
“This could be a $100-billion industry.
It will be the fastest-growing industry in the world,” he said.
Theranos CEO Elizabeth Holmes said earlier this month that the company had sold about 2 million of its initial Phase 3 human trials, but declined to say when that was.
The company has raised a record $15 billion, with $10 billion of that from investors including venture capital firm Andreessen Horowitz.
Shares of Theranos jumped more than 4 percent on Wednesday to $20.40 a share, while the benchmark Nasdaq Composite Index rose 0.5 percent to 6,566.94.
The Theranos stock has surged nearly 6 percent this year, outperforming the S&P 500 Index, which has gained just 1.7 percent.