BIOCEPT Inc. (NASDAQ: BIOC)
Biocept Blue Cross Announcement and Ramifications
Biocept, Inc. (NASDAQ: BIOC) is a molecular diagnostics firm which develops and commercializes blood-based biomarkers to allow for the detection and treatment of cancer. It announced that it had entered into an agreement with Blue Cross Blue Shield of Illinois (BCBS IL) Tuesday 12th January. BCBS IL is the largest health plan in Illinois.The agreement entails that the Illinois-based health insurance group’s eight million members shall have direct access to Biocept’s blood-based diagnostic tests. As a result of the accord, the number of people who will be able to access Biocept’s liquid biopsy tests through insurance plans has surged to 133 million. The firm stated in a press-release the utilization of a liquid biopsy is the most viable method of cancer detection for many patients, as obtaining sufficient biopsy material from a surgical procedure may be neither possible nor practical in many situations.
Shares have been trading at a staggeringly high volume, over six times the daily average, it would therefore appear that investors are largely bullish. Yet warnings still abound from cautious shareholders who fear that events that occurred around this time last year may repeat themselves. In February 2015 following a high of 4.75 BIOC experienced a dramatic avalanche. Shares suddenly halved in value a month later and thereafter, notwithstanding a few gentle peaks, they generally continued a steady downward slide, descending to current prices. It is likely that BIOC will be a momentum story in the short term. For those who don’t want to experience déjà-vu, you might wish to ride the wave but with one eye on the trough. It could be best to get in and out quick. After all, as analysts noted, BIOC has declined 57.72% since June 8, 2015 and is still down-trending. It has underperformed the S&P500 by 51.86%.
Biocept, Inc. is a San Diego, California-based company that specializes in the commercial-stage of molecular diagnostics. It utilizes a proprietary technology platform and a standard blood sample to provide physicians with important prognostic and predictive information to enhance individual treatment of patients with cancer. Biocept’s patented technology platform captures and analyzes circulating tumor DNA, both in circulating tumor cells (CTCs) and in plasma (ctDNA). Biocept currently offers assays for gastric cancer, breast cancer, lung cancer, colorectal cancer, prostate cancer and melanoma, and plans to introduce additional CLIA-validated assays in the near term.