Interpace Diagnostics Group Inc (NASDAQ:IDXG) shares jumped 70.45% to $7.50 on Tuesday then retreated 10% in after-hours trading to $6.75. The company has a market cap of $12.10 million at 2.02 million shares outstanding. Share prices have been trading in a 52-week range of $0.70 to $19.80.
Formerly known as PDI Inc, Interpace Diagnostics Group is a company that is focused on developing and commercializing molecular diagnostic tests principally focused on early detection of high potential progressors to cancer and leveraging the latest technology and personalized medicine for patient diagnosis and management.
It operates through molecular diagnostics segment. As such, the company offers molecular tests, such as PancraGen, which is a pancreatic cyst molecular test that can aid in pancreatic cyst diagnosis and pancreatic cancer risk assessment utilizing its PathFinder platform; ThyGenX, which assesses thyroid nodules for risk of malignancy, and ThyraMIR, which assesses thyroid nodules risk of malignancy utilizing a gene expression assay. Through this, Interpace Diagnostics Group provides diagnostic options for detecting genetic and other molecular alterations that are associated with gastrointestinal and endocrine cancers, which are focused on early detection of cancer.
In a press release this week, Interpace Diagnostics Group announced that it has entered in to an Agreement with the Blue Cross Blue Shield Association’s Center for Clinical Effectiveness “Evidence Street.” This program provides the company with the opportunity to provide available evidence for its molecular Thyroid and Pancreas tests, to support further coverage determinations among Blue Cross Blue Shield and other health plans.
Under this agreement, Interpace Diagnostics Group will work with Evidence Street to develop the optimal ways to secure and preserve ongoing coverage for not only its currently marketed products but also for those tests in the pipeline being launched in the near future. The company’s products are currently covered by Medicare and numerous commercial plans while Blue Cross Blue Shield has 36 independent plans that account for 106 million covered lives in the country.
We are excited about our evolving relationship with Blue Cross and Blue Shield’s Evidence Street which, we believe, will help ensure that we continue to develop and provide the information and data necessary to support and secure broader based insurance coverage and reimbursement for all of our products. This relationship is another important milestone in our reimbursement strategy and, when added to our recent AETNA insurance approval for ThyraMIR and New York State approval to market ThyGenX, bodes well for our commercial prospects in 2017 and beyond,” stated Jack Stover, President and CEO of Interpace Diagnostics Group.
Aside from that, the company also announced that it has entered into a securities purchase agreement with certain institutional investors to purchase an aggregate of 375,000 shares of common stock at a price of $6.75 per share. In addition, the agreement covered an aggregate of 255,000 pre-funded warrants to purchase common stock at a purchase price of $6.74 per share, with $0.01 per share payable upon exercise of each pre-funded warrant, in a registered direct offering with aggregate gross proceeds of approximately $4.2 million. This offering is expected to close by January 6, 2017.
Maxim Group LLC is the exclusive placement agent for the offering. Net proceeds to Interpace Diagnostics Group are estimated to be approximately $3.7 million, which are intended to be used for working capital, repayment of indebtedness and general corporate purposes.
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