PositiveID Corporation (OTCMKTS:PSID) Delivers Big News

Shares of PositiveID Corporation (OTCMKTS:PSID) exploded up the charts after the company announced big news concerning the Zika Virus. Zika is a fever-causing virus transmitted by the Aedes Aegyptimosquito that can cause microcephaly, a serious congenital condition in which babies are born with head and brain abnormalities, and Guillain-Barre syndrome, a rare neurological disorder that can result in paralysis. The Zika Virus is so severe that last month President Obama signed into law a bill aimed at encouraging pharmaceutical companies to help combat the Zika virus and develop vaccines. Now, microcap PositiveID is front and center of the war on Zika.PSID has successfully detected the Zika virus on its Firefly Dx polymerase chain reaction breadboard prototype pathogen detection system. PositiveID used assay partner GenArraytion, Inc.’s Aedes Aegypti MultiFLEX Bioassay test, which targets four genetic regions of the Zika virus, on PositiveID’s Firefly Dx prototype system. The Zika virus test works with an existing GenArraytion MultiFLEX Bioassay panel that targets viruses that cause dengue fever, yellow fever and Chikungunya, which are also carried by the same mosquito and are known to cause febrile disease in humans. This test both identifies and discriminates between the Zika African and Brazilian lineages.The legislation that President Obama signed puts the Zika virus--a mosquito-borne illness that is spreading throughout South and Central America--to the Food and Drug Administration's priority review voucher program in order to jump-start the development of treatments for tropical diseases. In addition to this legislation, President Obama's administration has been pushing for $1.9 billion in emergency funding for efforts to combat Zika, which the Centers for Disease Control and Prevention confirmed last week can cause birth defects.The key with PositiveID's Firefly Dx prototype system is that it's a handheld, fully automated, lab quality, real-time device able to detect bio-threats at the point of need. Currently, PCR tests are run on large lab equipment and take a minimum of four hours to deliver results. A design advantage of Firefly Dx is that it does not require additional equipment or separate steps for sample preparation and purification, unlike current lab-based equipment, thus reducing time to results as well as cost per test. In addition, there is significantly less chance of sample contamination compared to existing testing methods. The Firefly Dx prototype system has also successfully detected a number of other pathogenic organisms including E.coli, influenza, MRSA, MSSA, C. diff and others. As CEO William Caragol said:

“Rapid identification of Zika at the source could drastically help containment measures and therefore control transmission of the virus. With grave concerns about the effects of Zika on pregnant women, having the ability to quickly and accurately identify Zika and other bio-threats at the point of need without having to take samples back to a lab, which is the fundamental value proposition of Firefly Dx, could help protect the lives of unborn children.”

Earlier this month, PSID posted results for the first quarter. Revenue increased to $1.7 million for the three months ended March 31, 2016, up from $0.1 million for the three months ended March 31, 2015. The increased revenue is attributable to the company’s acquisitions of E-N-G Mobile Systems, Inc and Thermomedics Inc. in December 2015. The Company’s current revenues are primarily generated from its Mobile Labs segment. Gross profit increased from $28,000 in the three months ended March 31, 2015, to $529,000 in the three months ended March 31, 2016, which is also attributable to the company’s acquisitions of ENG and Thermomedics.Currently trading with a market cap of just $6 million, PSID is an exciting story on the OTC Markets. The story just got a lot better with the Zika news. This positions the company to tap into possible government funding. Investors now realize the Firefly Dx prototype system is for real and there are now multiple uses for detecting a number of pathogenic organisms which will save time, money and lives. This puts PSID on track to becoming a market leader in the mobile technology vehicle market. We will be updating Insider Financial as soon as we know more. For continuing coverage on PSID, sign up for our free newsletter today and get our next hot stock pick!Disclosure: We have no position in PSID and have not been compensated for this article.