Dear %%fullname%%,
Institutions have recently added 1.5 million shares, increasing their ownership of this biotech stock by 14.77%. Analysts’ median target is $9.50 per share, a 200% increase from current trading levels.
TrovaGene (TROV)
From Top Stocks under $10
TrovaGene (TROV) develops non-invasive urine testing technology that can detect infectious diseases, cancer, and more. It is a San Diego-based biotech company that has been beaten up—thanks to its need for cash, in secondary share offerings and debt issues. But those have been taking place as the company looks to grow, and commercialize its precision cancer monitoring (PCM) tests. In fact, those dilutions have been opportunities to buy the stock, which has the potential to double.
The firm has $74 million of cash on its balance sheet, which is important, because it’s the highest it’s ever been.
The company is silent on what the proceeds will be used for, but the writing is on the wall—this management team is becoming strategic partners with names like the Robert H. Lurie Comprehensive Cancer Center of Northwestern University (Lurie Cancer Center) and the Northwestern Medicine Developmental Therapeutics Institute (NMDTI). And that’s why I think things are heating up. TROV is investing in developing and commercializing its cancer research tests, priming for a potential $5 billion market.
Additionally, the company hired Matt Posard as Chief Commercial Officer in March 2015, with responsibilities for sales, marketing, market development, client services, and business development—and that’s an indication that TROV is investing big to get its tests out there. Posard was previously at Illumina, a $27 billion market cap biotech, and helped led that company to its first $1 billion in sales.
The company is also currently underway in its Clinical Experience (CE) program, which was designed to assess clinical interest for TROV’s products by oncologists. In a 60-day period, 171 physicians signed up vs. expectations of 30, and roughly 20% have even started ordering tests—which can lead to reimbursement deals with benefits insurers.
We’re not exactly in early stages any more. The results need to start coming in—and by preliminary results indications, they are positive (no pun intended). With ample liquidity on its balance sheet—$74 million in cash—I expect to see favorable milestones to be hit at an increasing pace going forward.
For now, the biotech volatility may linger as markets grapple with global growth, credit, dollar and commodity headwinds, but companies like TROV with proven products, large addressable markets, and proven management execution should ultimately find upside.
Mandeep Rai, Top Stocks under $10, published by Money and Markets, a Division of Weiss Research, Inc., www.moneyandmarkets.com/services/trading-services/top-stocks-under-10, issues@e.moneyandmarkets.com; 1-800-291-8545, December 28, 2015