OncoCyte: Between A Hammer And A Hard Place

Nov. 19, 2022 11:10 PM ETOncoCyte Corporation (OCX)
Bashar Issa profile picture
Bashar Issa


  • As the era of free money ends, molecular diagnostic companies, which historically relied on equity funding, find themselves strapped for cash.
  • OCX is in an unfavorable position compared to peers who have the necessary revenue base to pivot into profitability.
  • Unless OCX finds partners to develop its pipeline or commercialize DetermaRx, it will most likely tap into the equity market at suppressed levels, amplifying dilution.
  • This article upgrades OCX from Sell to Hold on improving valuation after the stock dropped 50% since our last rating.

A balloon flying too close to cactus

Richard Drury

Investment Thesis

In the previous article, we looked at OncoCyte' (NASDAQ:OCX) platform and compared its potential against structural risks, manifested in a weak balance sheet, intensifying competition, and low earnings visibility, and concluded that risks outweigh rewards, assigning its ticker

This article was written by

Bashar Issa profile picture
Bashar is a contributing writer at Seeking Alpha, focusing on Long/Short investment ideas, with a geographic focus in North America. Before that, Bashar worked at an Investment Fund in the United Kingdom. He has a Master's degree in Finance from the Queen Mary University of London and a Bachelor's degree in Economics from Middlesex University.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such 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.

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