PositiveID Corp (OTCMKTS:PSID) Soars On White Paper, Here's What's Next

PositiveID Corp (OTCMKTS:PSID) is running up on its latest announcement, gaining more than 630% across the single session on Wednesday and up a total of 790% for the week so far. The driver behind the gains is the publication of a whitepaper, which details the detection of the Zika virus using the company's proprietary technology, and lead asset, the Firefly Dx.We've covered this one before, and in our previous analysis, we noted that this technology has the potential to be a real game changer in the space of field pathogen detection. We underpinned this note with the suggestion that catalysts would derive from positive results in the field, and that we would be looking out for these results to solidify our bias.Well, this is exactly what we were talking about.With this data in hand, then, there's more than proof of concept to support the device in question. As such, and even with the latest run taken into consideration, there looks to be considerable room for further upside as PositiveID builds on this data.For those that missed our previous coverage, the company is a Florida based molecular diagnostics company, with a focus on threat detection and medical testing. Its lead asset, the above mentioned Firefly DX, is a device that allows for rapid testing of a whole range of different pathogens, with a couple of key advantages over the current standard testing equipment.First, it's handheld and completely portable. This means it can be carried into the field without the need for any specialist equipment, power supply etc., and opens up a range of potential applications that aren’t available to current options due to their static nature – think military, missionary work, that sort of thing.Second, it's much faster in supplying results than the current tech. As things stand, if someone wants to test for a pathogen, and we'll use Zika as an example since this was the focus of the white paper, they need a sample transferred to a static lab environment, and the test takes four hours minimum to produce results. With The Firefly DX, the sample is inserted into the the device, and it comes back with a result within 30 minutes. These sorts of situations, i.e. the ones that demand pathogen testing, are, by nature, time sensitive. Firefly DX reduces the test return time by close to 90%. That's a massive improvement, and one that could revolutionize field testing.Now, all this is great, so long as the device works, and that's pretty much what we said last time. Our concerns were rooted in whether the device would be accurate in its return, within short a short time frame.The white paper (read it here) just allayed our concerns. The investigation was carried out in collaboration with an entity called GenArraytion Inc, and used two different strains of the Zika virus as inputs. The automated runs successfully synthesized cDNA using a reverse transcriptase (RT) step and then completed a 45-cycle PCR to produce the detected target results, which were identified by the system as Zika.So, what's next?Well, we think Zika was a smart move by PositiveID, based on the fact that it's still a concern in large parts of the world, and so not only does the company pick up some strength on publication of technology proof of concept, but this strength is amplified by markets perception of public demand for the product.There are plenty more potential applications to come, however, and we're looking for the company to build on these and serve up some catalysts in the form of fresh whitepapers, demonstrating efficacy in alternative indications.Cash is going to be required to fund these developments, as there's practically nothing on hand of any note right now, so expect some dilution. This said, with the potential upside just illustrated by the release of one PoC, recovering value lost through said dilution shouldn’t be an issue.We will be updating our subscribers as soon as we know more. For the latest updates on PSID, sign up below!Disclosure: We have no position in PSID and have not been compensated for this article.