Biocept entered into a supply agreement with Aegea Biotechnologies for a new PCR-based Covid-19 assay kit. Shares of Biocept fell 1.2% in midday US trading.
Under the terms of the agreement, Aegea will provide the assay kit to Biocept for validation at its molecular lab and subsequent commercialization of a laboratory developed test. Financial details of the deal were not disclosed.
Biocept is a molecular diagnostic assay provider, while Aegea is focused on developing next-generation nucleic acid technologies.
Biocept (BIOC) CEO Michael Nall said, “This new assay further demonstrates Biocept’s commitment to COVID-19 PCR testing by expanding our COVID-19 portfoilo with a differentiated laboratory developed test. A key priority will be quantifying viral load to determine how patients are responding to therapy and better assess how infectious they may be. This is an important feature of the test and is especially valuable for identifying asymptomatic patients who have the potential to infect others.”
Notably, this assay seeks to evaluate the adequacy of samples in patients with negative results and to be adapted for identifying new variants of the SARS-CoV- virus. (See Biocept stock analysis on TipRanks)
Biocept on Feb. 23 announced a research collaboration with Protean BioDiagnostics to study its Target Selector molecular assay to determine EGFR status in patients with non-small cell lung cancer (NSCLC). EGFR is a common mutation of NSCLC.
On Feb. 24, Maxim Group analyst Jason McCarthy reiterated a Buy rating on the stock and doubled the price target to $20 (204% upside potential) from $10.
McCarthy commented, “While much of the Biocept story has been focused on COVID testing in recent months, the core oncology business is the key to driving growth in the longer term. Getting target Selector in the hands of other diagnostics companies for validation is a key step for creating more widespread adoption.”
The other analyst covering the stock, Brookline Capital Markets’ Sally Yanchus reiterated a Buy rating on the stock with a price target of $20. The two ratings add up to a Moderate Buy consensus rating . Shares have gained 58% over the past year.
Related News:
Zoom Crushes 4Q Estimates As Revenue And Profit Soar; Shares Trend Higher
Lemonade Slides Over 7% Despite Outperforming 4Q Estimates
Switch Slips 8% On Lower-Than-Expected 2021 Revenue Outlook
