Will Atossa Genetics Inc (ATOS) Continues To Rally?
In the last two trading sessions, Atossa Genetics Inc (NASDAQ:ATOS) shares gained more than 75%. It raised the question whether the rally will continue. The expectation among investors’ is that the company would be able to generate meaningful revenue next year from the pharmaco genetics or PG testing for patients.
PG testing, which is a molecular testing subgroup, has become a promising market. It has potential to grow significantly in the next decade. PG testing provides genetic make-up of an individual to establish the drug regimen that would best suitable for the individual’s condition.
National Reference Laboratory for Breast Health, Inc., a subsidiary of Atossa, is providing PG testing. Doctors would be able to prescribe drugs, as well as, doses, based on the results of an analysis of the patients’ genetics. Only in October, it unveiled PG testing, and over 500 tests were conducted for patients since then in the United States. On average, the retail price worked out to $1,700 a patient.
The interesting aspect was that the company was making efforts to make the testing available in selected markets in Europe. Atossa’s subsidiary can handle 5,000 PG tests in a month. However, it was confident of increasing the capacity by adding more equipments and hiring additional hands.
The company has retained BioVentive Inc. as a partner for sales and marketing to accelerate the pace of PG test growth in America. The PG tests visibility is expected to be raised greatly with the help of a team of 85 women health sales representatives from BioVentive.
Atossa is also planning to use third-party reimbursement companies like Xifin, MultiPlan, HealthSmart, and FedMed to not only maximize the amount but also ensure speedy collections. The idea was to make sure the insurer pay for the PG tests for the patients covered by them.
A study conducted by Kalorama Information suggests that PG testing accounted for 2% of molecular testing. However, the expectation is that PG testing will finally account for the bigger volume of dollar.