Transgenomic (OTC: TBIO) announced this morning that it had a collaborative arrangement with New York University’s Langone Medical Center to use the company’s ultra-high sensitive mutation detection technology, known as ICE COLD-PCR, to study lung cancer and responses to a variety of treatments. The focus of the study centers on mutations found in the blood of patients in the early stages of operable lung cancer. The detection technology may not only signal the effectiveness of targeted therapies, but it also may foretell when the cancer becomes resistant to a particular treatment or when the disease begins to reoccur.
Initially, traders reacted favorably to the news as buyers on the opening bell pushed the stock five cents higher than Friday’s closing price of $0.95. It did not take sellers long to assert themselves as they drove share prices down to a session low of $0.88 at the completion of the initial 90 minutes in the trading session. Despite the early morning price action, volume barely made a mark. During the lunch hour on the east coast, food was not the only item traders chowed on. Almost the entire day’s volume in Transgenomics traded between noon and 1:00 pm in New York. The stock rallied a nickel from its intraday low. Share prices did not budge one cent from $0.93 during the remainder of the afternoon. Over 636,000 shares traded for the day on just 48 separate transactions. The average daily volume for the stock is 101,000 shares.
For most of the last year, sellers have had the upper hand since the stock hit a 52-week high of $1.45 almost a year ago. Shares prices hit their annual low less than two months ago when the stock traded for $0.70. Shares got a boost when the company announced on July 24, 2012, that Medicare coverage had been approved for its Clopidogrel Genetic Absorption Activation Panel. The news helped lift the stock from around $0.80 to $1.10 in one week. The month of August saw the stock steadily decline to its current level.
In other related news, the company announced on August 22, 2012, that the National Institute of Health had awarded it a grant of $100,000 to study the early detection of pancreatic cancer using the ICE COLD-PCR technology.
A check of Stockreads.com and Stockpromoters.com show no promotional activity within the last year. Before the Labor Day weekend, @Briefingcom talked about Transgenomic acquiring an Adolescent Scoliosis Test from Axial Biotech for $4.4 million. The deal is expected to close sometime this month.
Transgenomic is based in Omaha, Nebraska, and focuses on the testing and analysis for genetic variations and mutations. It offers products and services to academic and medical research along with clinical laboratories and the pharmaceutical industry. The company was founded in 1997.