Genetic Technologies Limited (ADR) (NASDAQ:GENE) released news stating that its BREVAGenplus breast cancer test will be offered at six new centers. The product will be offered to a range of patients from January to March. Following that release the test will be made available to additional customers of breast cancer imaging clinics. Genetic expects this to translate into more sales as it gains more exposure. The company recently changed its sales strategy and now focuses on larger clinics that treat breast cancer and provide imaging for patients. It still will address independent physicians and healthcare providers but not with the intensity of the larger potential audience.
BREVAGenplus is an easy to use test that can predict the risk of breast cancer in women. It is a second generation product and provides physicians with information to build prevention programs for females. The product is clinically validated and is the most advanced risk-assessment product on the market. It recently was expanded to cover African-Americans and Hispanic women along with Caucasians over the age of 35. The women targeted also have never had the disease and are susceptibleto one or two risks of the disease.
Genetic Technologies Limited (ADR) (NASDAQ:GENE) also recently announced it has secured $24 million in a equity placement. This is a stand-by agreement and the company has the choice to use it or not. It was provided by Kentgrove Capital of Australia. The agreement is for a period of 24 months and for each placement of the funds, Kentgrove will receive shares at a 5% discount. The funds will be used to advance the BREVAGenplus product and also to assist the funding of general working capital.
The stock has moved to 52-week highs and is showing intense momentum. Although it is slightly oversold that is expected after the big run-up. Momentum indicators are strong and the divergence between moving averages is being closed. Volume has been very strong and as it settles the stock should find a trading range that is comfortable.