The double-digit percentage spike in Transgenomic Inc. (NASDAQ: TBIO)’s shares can now be explained. Investors responded positively to the company’s update on the superior performance of its ICE COLD-PCR (ICP), a branded biopsy enrichment technology used in cancer detection. Transgenomic issued a press release detailing how biopsies enriched with ICP detected cancer mutations that were missed by standard biopsies.
The study to compare the performance of Transgenomic Inc. (NASDAQ:TBIO)’s ICP against standard PCR analyzed 22 samples. In the study, ICP identified all the mutations picked up by PCR. But in some seven cases, ICP was more accurate, detecting mutations that PCR failed to identify. As such, ICP turned out to be 100% concordant to legacy PCR.
The high sensitivity of Transgenomic’s ICP means that the technology will receive greater adoption in cancer detection, especially in the area of monitoring the effectiveness of a treatment. From a business point of view, the superior performance of ICP over traditional mutation detection methods should expand the technology’s commercial opportunities.
For Transgenomic, the finding brings it closer to its dream of becoming the leading provider of liquid biopsy globally.
Transgenomic said it would submit the data on the concordance of its PCR to a peer-reviewed scientific publication.
Transformation at Transgenomic Inc. (NASDAQ: TBIO)
It is worth mentioning that Transgenomic Inc. (NASDAQ: TBIO) is in the middle of a transformational journey whereby the company is shedding some money-losing operations to focus on areas of high growth and profitability. As part of the transformation, Transgenomic is turning its full attention to commercializing its biopsy enrichment technology called ICE COLD-PCR (ICP).
Transgenomic Inc. (NASDAQ: TBIO) posted net sales of $1.7 million in 2015, 33% higher than the previous year. The management attributed the jump in net sales to increase in contract laboratory services in Omaha. The increase in sales had a favorable impact on the bottom-line where net loss narrowed to $300,000 from a loss of $900,000 in the previous year.
A decrease in R&D spending also saw operating expense decline to $8.9 million compared to $9.6 million in the prior year.