Trovagene (NASDAQ:TROV) Hits the Ground Running
Trovagene is a biotechnology company that specializes in the molecular diagnostic detection and analysis of Transrenal nucleic acids (TrNAs) in urine. They provide simple-use tests that can detect certain types of disease by analyzing the TrNAs in urine samples. The company's technology is applied in various testing, such as tumor detection and monitoring, prenatal genetic testing, infectious diseases, tissue transplantation, forensic identification, and for patient selection in clinical trials.
In the latter part of 2012 it became evident that management's plans to commercialize their diagnostic product line were really starting to materialize. This fueled a rapid ascension in share price that has continued into the start of the 2013. Despite a slight pullback over the past two days, TROV closed yesterday at 7.98, up nearly 15 percent during the first trading month of the year, and nearly 120 percent over the past 6 months.
Their growth over the period has been pretty remarkable, and with good reason. Positive news related to TROV has been a constant over the past 6 months. Developments have included a licensing deal with Genoptix, and a clinical collaboration with The University of Texas MD Anderson Cancer Center which aims to significantly broaden the scope of the types of cancers detected by the company's diagnostic technology. These announcements have drawn attention from retail investors, and from the Street which is evidenced by recent coverage initiated by Roth Capital and Aegis Capital, which both offer Buy ratings and price targets of $11.00-12.00 per share.
Investors should note that with such remarkable growth over a short period of time a pullback may soon take place. Especially considering TROV has yet to see any significant revenue from operations. However, as of the last filing TROV had a very strong cash position which they added to through a private placement in December. With management's proven track record of wisely using resources they should have no problem with their balance sheet going forward.
Shares are up again today, trading off a high of 8.40 as Trovagene's story continues to draw investors in. With over 42 issued patents TROV is positioned to be a leader in diagnostic technology as the medical community shifts away from the use of blood and biopsy samples for diagnostic screening.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.