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Analyst Blog

San Diego, CA-based Trovagene Inc. (TROV - Snapshot Report) , a molecular diagnostic company, has been recently selected as the liquid biopsy provider for a study named Precision Promise. The study is a large-scale precision medical trial to treat pancreatic cancer patients.

Leading non-profit organization The Pancreatic Cancer Action Network is expected to make an initial investment of $35 million toward this effort.

Coming to share price movement, Trovagene surged 4.5% to close at $4.58 per share, highly justifying the development. However, a further analysis shows bearish market trends as Trovagene represents a negative year-to-date return of 15.2%, way lower than the S&P 500’s 5.2% over the same time frame.

Notably, the company’s flagship Trovera liquid biopsy test will be used in the study. With the latest development, Trovagene is expected to enhance the clinical trial process for treating pancreatic cancer, the third leading cause of cancer-related deaths in the U.S.

Per management, the latest development is likely to fortify the company’s market position by validating the company’s flagship quantitative liquid biopsy testing procedures.

Our Take

The global liquid biopsy market by cancer type is expected to reach a worth of $1.66 billion by 2021, growing at a CAGR of 23.4% (Markets and Markets). Such bullish prospects are expected to propel growth for Trovagene in the coming quarters.

Of the other recent developments, Trovagene recently signed an ‘in-network provider agreement’ with Blue Cross Blue Shield of Illinois, a division of Health Care Service Corporation, which is likely to expand the company’s network. In fact, the publication of a study demonstrating clinical information of ‘Trovera urine liquid biopsy test’ platform in Experimental Hematology & Oncology, an open access journal, is also a significant positive in our view.

Key Picks

Trovagene holds a Zacks Rank #2 (Buy).

Otehr favorably ranked stocks in the broader medical sector are GW Pharmaceuticals Plc. (GWPH - Analyst Report) , ABIOMED (ABMD - Analyst Report) and Quidel Corp. (QDEL - Snapshot Report) . All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

GW Pharmaceuticals has a solid year-to-date return of 91.7%, way better than the S&P 500’s 5.2% over the same time frame. Notably, the company posted a positive earnings surprise in the last four quarters, the average being 41.6%.

ABIOMED posted an impressive one-year return of 52.1%. The company recorded a positive earnings surprise in the last four quarters, the average being 34.9%

Quidel Corp. has a positive year-to-date return of 2%. The stock has a healthy expected earnings growth rate of 20%.

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