Transgenomic Inc. Announces Collaboration With LifeLabs, Shares Skyrocket 233% On News

Transgenomic Inc. Announces Collaboration With LifeLabs, Shares Skyrocket 233% On News

By: Dylan Sikes - AllPennyStocks.com News

Thursday, January 12, 2017

The biotech sector has had a tumultuous 2016 and the trend is likely to continue as the industry faces increased regulations imposed by the new government. The sector is also expected to see some downside if the President-Elect decides to clamp down on wayward price increases. However, within the sector, there are several firms which are expected to perform well regardless of the political environment, owing to their strong fundamentals. One such company is Transgenomic Inc. (NASDAQ:TBIO), which is engaged in developing personalized medications for cancer and other inherited ailments. The company announced a major development this morning with regards to its lead product ICE COLD-PCR (ICP). Transgenomic reported that the technology has been selected by LifeLabs, a leading Clinical Laboratory Services Provider, as its mutation enrichment platform for cancer testing.


The company reported that this agreement has a tenure of three years and is renewable. It will include a non-exclusive license to the ICP technology in Canada. The deal will help the company in generating additional revenue.

Transgenomic said that the adoption of the technology by LifeLabs is an important endorsement for the capability of the technology. The company also stated that the deal validates the commercial model followed by it.

Paul Kinnon, President and Chief Executive Officer of Transgenomic stated, “We believe that this sizable commercial licensing agreement is indicative of the growing traction in the marketplace we have been anticipating.” The company believes that the agreement will pave way for more such deals for the technology in the future.

The company’s shares have had a rough 2016 as they lost nearly 70% of their value. However, pursuant to the news of the new contract, the stock jumped over 200% in the pre-market trading session. Before this steep rise, the stock was beginning to show signs of recovery as well.

Recently, the company has taken many steps which are likely to yield positive results for their core business including acquiring privately owned Precipio Diagnostics, LLC.

The merger provided the company with access to funds as a syndicate led by BV Advisory Partners will invest up to $7 million in the resulting entity. The funding will help the balance sheet of the company and will also aid in the process of further expansion. It will also provide synergies as various offerings of these companies are complementary.

The company is also looking for expansion in international markets. Its latest agreement with LifeLabs will let the company expand into the growing Canadian market. It is also looking to create a foothold in emerging markets such as India and China. With its stock price on the mend and bright future prospects, the company provides an interesting investment proposition.

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