Oncology Diagnostics Company Biocept Is A Beaten Down IPO With Near Term Catalysts
- The stock is down 60% since the February IPO due to the increasing cash burn rate and fears of another equity raise.
- However, the expected commercialization of multiple tests targeting additional tumor types within the next year should reduce any potential dilution due to a higher expected valuation.
- There is significant upside potential as its liquid biopsy tests begin to supplement or even replace tissue biopsies in the $1 billion+ molecular oncology testing market.
- The company is already at the commercialization stage with a clear path to revenue growth.
- The conversion of the preferred shares and convertible notes simplified the capital structure; patents covering key aspects of its tests provide downside protection.