Biocept (NASDAQ:BIOC) is having an incredible day today in pre-market trading, and for a very good reason. The company has signed yet another agreement with a PPO. Biocept focuses on liquid biopsies that not only improve the detection of cancer, but also improves treatment strategies. When I first started following the company, I can't tell you how many emails I got from bears that were down talking me because of my bullish opinion. However, it is things like this that validate that bullish opinion. Today, we'll talk about the PPO agreement, how the market reacted to the news, and what we can expect to see from BIOC moving forward.
BIOC Signs Another Big PPO Agreement
Today, it was announced that Biocept's liquid biopsies have become even more accessible to patients as the result of an agreement signed between the company and a preferred provider organization or PPO network. The PPO network is known as FedMed and was founded in 2,000. The network consists of more than 4,000 hospitals, 60,000 ancillary care providers, and 550,000 physicians nation wide. Currently, more than 40 million Americans use FedMed, and thanks to the agreement that was signed between BIOC and FedMed today, each and every one of these Americans now have access to Biocept's proprietary Target Selector liquid biopsy testing. In a statement, Michael W. Nall, CEO at BIOC had the following to say...
Our highly sensitive and highly specific assays that can profile cancer-associated biomarkers from a blood sample demonstrate a clear advancement in the move to precision medicine... Detecting the presence of these cancer-associated biomarkers can assist and guide physicians in making personalized treatment decisions for their patients with cancer in order to positively impact outcomes.
How The Market Reacted To The News
As investors, we know that the news moves the market. Any time there is positive news released with regard to a publicly traded company, we can expect to see gains in the value of that company. The news released from BIOC is incredibly positive. The company has added another more than 40 million potential patients that now have access to their liquid biopsies, which will likely lead to big profits. As a result, we're seeing strong pre-market gains in the stock this morning. Currently (8:41), BIOC is trading at $1.78 per share after a gain of $0.17 per share or 10.56% thus far today.
What We Can Expect To See Moving Forward
As I said in the beginning of today's post, I have an incredibly bullish expectation with regard to BIOC. The reality is that the company has come up with something that is no less than amazing... a liquid biopsy. Think about it, if your doctor wanted to test to see if you had cancer, would you want him to take a tissue biopsy or figure out the details through a simple blood test? I remember in the beginning, one of the biggest arguments the bears had about Biocept was that insurance companies would never fund this testing... well, here we are several months later and guess what insurance companies are doing! They are signing agreements to fund testing by BIOC! I believe that this trend is only likely to continue, leading to strong sales and revenue for BIOC in the long run, which will equate to investor excitement and strong gains in the company's stock value.