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Will The Momentum In BIOC Stock Continue?

Will The Momentum In BIOC Stock Continue?
Written by
Alex Carlson
Published on
August 7, 2020
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BIOC stock is a name that we have covered on and off since 2017. Overall, BIOC stock has been a horrible investment since, but it’s been great for traders and momentum players. Price spikes are a regular occurrence and one which rewards patient investors that sell into those big moves.As we keep telling our subscribers over and over again, the key to successful penny stock investing is to find the momentum BEFORE it happens. Don’t go chasing!As we said in our last write-up on BIOC stock, it was clear that Biocept stock was setting up for another major price spike. Shares were trading at just $.54 a share. Now, many of our readers and subscribers are asking if the momentum will continue in BIOC stock. In this follow-up, we take a look. BIOC Stock Daily Chart

About BIOC Stock

First up, here's a little background info on BIOC stock for those not familiar.The company describes itself as a cancer diagnostics company, which develops and commercializes proprietary circulating tumor cells (CTC) and circulating tumor DNA assays utilizing a standard blood sample. For the past thirty years or so, physicians have been using standard biopsies to determine the existence (and progress) of a patient’s cancer. Biopsies, however, are invasive, can be painful, and difficult to carry out in many instances. Biopsies pick up on certain tumor cells, and fragments of DNA, and can use the frequency of these two elements to determine how advanced the cancer in question is.Biocept’s tests do exactly the same, but they detect circulating cells and the DNA fragments in blood, as opposed to from a direct tumor sample. The tests are called liquid biopsies, and Biocept has developed a platform called Target Selector, which is the technology that detects the fragments in the sample. Target Selector tests are noninvasive and require a small amount of blood. They are ideal for tough to reach biopsy cancers (say, lung cancer) and in clinical studies, have proven similar in detection ability to biopsy. They’re not quite as accurate, of course (it’s a sort of satellite test, so it’s never going to be 100% as effective) but it works, and it’s cheap, quick and easy.[embed]https://www.youtube.com/watch?v=eikfArKjQ50&feature=emb_title[/embed]

BIOC Stock and Aegea Biotechnologies

What propelled the stock through the $1 resistance level was the agreement between BIOC stock and Aegea Biotechnologies. The two companies will develop a highly sensitive PCR-based assay designed by Aegea for detecting the COVID-19 virus. The COVID-19 PCR assay is based on the core Switch-Blocker technology used in Biocept's suite of ultra-sensitive oncology-focused assays. The collaboration will leverage Biocept's experience in developing high-performance assays based on Switch-Blocker technology.The COVID-19 PCR assay is being developed as a next-generation test designed for improved analytical performance in order to better assist healthcare providers in screening and managing patients. The test is designed to incorporate unique capabilities to increase the sensitivity in detecting SARS-CoV-2 (COVID-19 virus) and to provide additional information on specific strain types. As part of the development agreement, Biocept has the first option to negotiate a license agreement to any resulting new COVID-19 PCR assay for commercialization in its CLIA-certified, CAP-accredited high-complexity molecular lab.The new test under development is designed to have several advantages compared with other COVID-19 PCR assays as a result of the single nucleotide discrimination capacities of the Switch-Blocker technology. The assay is designed to detect low copy numbers of viral RNA, therefore potentially detecting the viral load at much lower levels than conventional PCR-based assays. If successful, this would be an important differentiating feature as it has been reported that asymptomatic patients are able to infect others. As designed, the COVID-19 PCR assay would also allow for superior specificity in its ability to identify the different strains of SARS-CoV-2, as well as distinguish SARS-CoV-2, which is associated with COVID-19, from other common forms of the SARS virus.

COVID-19 Testing Capabilities

Biocept has manufactured 10,000 nasopharangeal swab collection kits, which will be available by 3Q to conduct PCR testing for COVID-19 in California. With the recent surge in new COVID-19 cases in California and with the capacity to perform up to 2,000 tests per day, Biocept could play a role in the testing regimen for California. California will need tests in the Fall for schools to open and for workers to return to work.As far as the commercial opportunity is concerned, taking into consideration the $100 reimbursement from the Centers for Medicare & Medicaid Services (CMS) for every test in labs with high throughput testing technology - for which Biocept qualifies - the 10,000 kits could represent revenue of $1 million. However, Biocept could potentially increase the testing capacity by a large margin.Biocept's laboratory capacity stands at 300-2,000 tests per day, meaning the number could increase significantly. We expect Biocept to continue to build-out its sample collection kit production.Biocept has received more than 7,000 and processed more than 6,500 COVID-19 specimens to date using RT-PCR technology at its CLIA-certified, CAP-accredited high-complexity molecular lab. The Company has distributed nearly 12,000 COVID-19 PCR specimen collection kits to date and has approximately 18,000 additional collection kits assembled and available for immediate distribution. The vast majority of COVID-19 test results were reported to healthcare providers within 48 hours of receipt of the specimen.

What's Next?

There are two major problems with COVID-19 testing - accuracy and turnaround time. BIOC stock looks to have solved both these issues. According to Michael Nall, President, and CEO of Biocept:

"We are proud to serve our community by providing highly accurate PCR-based COVID-19 diagnostic testing with quick turnaround time. Given the resurgence in COVID-19 cases, we expect demand for our testing services to remain high. We have assembled over 30,000 specimen collection kits available to date and have reordered components for an additional 20,000 specimen collection kits, while we continue developing our own kits, which we expect will be ready for distribution later this quarter. We are increasing our COVID-19 testing capacity by allocating more lab staff to key roles focused on this need, streamlining our workflow through automated electronic test ordering and accessioning, and the reporting of testing results through a direct interface with the California Reportable Disease Information Exchange (CalREDIE)."

In terms of BIOC stock, there might be some profit-taking as some that bought on the latest pr sell. However, this is just an opportunity for dip buyers to load up before the next pr hits the tape. While some are speculating that an offering is coming, we don't think so. The company had $21.5 million in cash at the end of March. We will have more clarity next week when Biocept reports earnings on August 12th after the close. Of course, we will be covering the release for our subscribers and tuning into the earnings call. For the latest updates on NASDAQ:BIOC, sign up today!Disclosure: We have no position in NASDAQ:BIOC or any of the securities mentioned. We wrote this article ourselves and it expresses our own opinions. We are not receiving compensation for it. We have no business relationship with any company whose stock is mentioned in this article. Insider Financial is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This article is not a solicitation or recommendation to buy, sell, or hold securities. This article is meant for informational and educational purposes only and does not provide investment advice.Image by Álvaro Ponce from Pixabay

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