RenovaCare Inc (OTCMKTS:RCAR): What's Behind The Run?

RenovaCare Inc (OTCMKTS:RCAR) is running this week, on what looks to be very little in the way of fundamental developments. When this sort of thing happens, we always take a closer look in an attempt to figure out why it is moving, and if – in turn – the movement signals an opportunity to pick up an exposure to any further upside.Our takeaway on this one is that it might do just that.Here is what we are thinking.For those new to this company, it is a biotechnology company that has developed a couple of assets targeting wound care. The two assets go hand in hand with one another, and are called CellMist and SkinGun. The former is probably the most valuable (purely based on the fact that it is the asset that represents the greatest advance technologically out of the two) but as a combination, they are worth more than individually.The concept behind the combination technology is not that difficult to grasp. The lead indication is burn care, so we will use that as a root for our explanation.As many readers will already be aware, wounds created by burning are very difficult to treat. The skin is often damaged beyond repair, and this can make the healing process slow, painful and – perhaps most importantly – associated with a high risk of infection. With CellMist and SkinGun, RenovaCare is trying to improve burn related wound treatment by allowing physicians to spray a layer of healthy cells onto the site of the wound. These cells are harvested from a healthy patch of skin, and prepared using proprietary technology to formulate the CellMist side of the equation. The SkinGun is the application device that sprays the prepared cells onto the wound.It is a stem cell therapy, and could completely revolutionize the way physicians go after this sort of wound – if, of course, RenovaCare can get it market.And that's the hard part.There is at least some in-patient evidence that this therapy works, and works remarkably well, but in order to get it in the hands of physicians across the US and beyond, RenovaCare has to first ensure the technology is patented to the hilt, and second, build a substantial database of evidence with which to approach the FDA for submission approval.The first of these hurdles, the intellectual property element, was the subject of an update last December, and gave shareholders something to cheer about as the SkinGun patent was awarded by the USPTO.Mid-January, management put out a shareholder communication, and detailed the path forward. The recent action that has driven the company's PPS run (to the tune of more than 45% in the last few days alone) looks to be rooted in the outlining of this path.Here is what management noted in its latest letter to shareholders:

"Expect to hear more in the coming weeks and months as well as receive updates on pre-clinical and clinical work – all part of our 2017 undertaking."

As we now head into the latter couple of weeks in February, these updates have not yet hit press, and it looks as though markets are loading up in anticipation of their near-term release.This is a very low float stock, and will move considerably on even the slightest uptick in volume; as such, with the recent volume spike, it is no surprise that the stock has jumped double digits. As we progress towards fresh news and data reports associated with the technology's advance through the clinical development pathway, we expect more volume, and in turn, more upside momentum.Cash isn't great, so keep that in mind ahead of any early-stage allocation – chances are we will see some degree of dilutive raise hit the tape across the coming couple of quarters.With any luck, however, the low float-high volume combo will serve to mitigate any negative impact equity issue has on PPS.We will be updating our subscribers as soon as we know more. For the latest updates on RCAR, sign up below!Disclosure: We have no position in RCAR and have not been compensated for this article.