Sahm Adrangi's Kerrisdale Capital Issues Negative Report on CareDx, Inc. and Announces Conference Call Schedule

NEW YORK, July 16, 2019 /PRNewswire/ -- Kerrisdale Capital, a private investment manager, has published a new report explaining its short position in CareDx, Inc. CDNA, a $1.7bn diagnostics company that develops tests for transplant recipients and whose market value is based primarily on AlloSure, a non-invasive test meant to detect kidney rejection. CareDx's share price has increased by 30x over the last two years amid the commercialization of AlloSure. Kerrisdale believes that  numerous study results released over the last year demonstrate that AlloSure is inferior to the current standard of care in detecting rejection, even as it costs about 300 times as much.

"CareDx has gamed the Medicare approval process for diagnostic tests, effectively getting taxpayers to subsidize large scale trials that are powering AlloSure revenue growth," said Sahm Adrangi, chief investment officer of Kerrisdale Capital. "But the trial results are poor and the patient attrition rates are staggering. We don't expect CareDx to be able to outpace those attrition rates for much longer."

Kerrisdale also believes that CareDx is vulnerable to both new entrants in the rejection diagnostics arena, as well as scaled back Medicare coverage.

The full report can be found at https://kerr.co/cdna.

Kerrisdale has a short position in shares of CareDx, Inc. and stands to benefit if its share price falls.

Conference Call Schedule

Kerrisdale will host a conference call on Tuesday, July 16 at 1:00pm ET to discuss the report on CareDx.

To participate in the conference call, dial 866-834-3313 (domestic) or 409-981-0700 (international) and reference conference ID 2995924.

About Kerrisdale Capital

Kerrisdale Capital Management, LLC, is a fundamentally-oriented investment manager that focuses on long-term value investments and event-driven special situations.

Contact

Agnes Cao

Kerrisdale Capital

acao@kerrisdalecap.com 

212-257-4385

Sahm Adrangi

Kerrisdale Capital 

sadrangi@kerrisdalecap.com 

212-792-9148

Kerrisdale Capital Management, LLC is a member of the Financial Industry Regulatory Authority, CRD number 160804.

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SOURCE Kerrisdale Capital Management, LLC