AnPac Bio-Medical (ANPC) Stock Climbs On JV News

AnPac Bio-Medical Science Co Ltd – ADR (NASDAQ: ANPC) is screaming for the top in the premarket hours, trading on gains of around 30% early on. The gains are the result of an announcement that the company is working to establish a new joint venture. Here’s what’s going on:

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

ANPC Announces Joint Venture News

In the press release, AnPac Bio-Medical Science said that on May 17, 2021, its board of directors approved the establishment of a joint venture, together with the company’s founder and chairman, Dr. Chris Chang Yu and other certain individuals.

The company went on to explain that the Joint Venture will surround the development of new cancer treatment technology and associated products. 

As part of the Joint Venture, ANPC will contribute two filed applications in the oncology space. 

The company went on to say that the new cancer treatment technology to be developed is expected to be based on its findings in the past 10 years of extensive early-stage cancer detection work involving more than 222,200 samples, as well as based on correlations between changes in biophysical properties in the micro-environment and cancer occurrence observed by multiple research groups. 

The novel technology is expected to use key treatment modules fabricated by integrated circuit technology in conjunction with certain reagents, to target biophysical properties exhibiting abnormal ranges within pre-cancer and cancer population. 

ANPC also said that the aim of the new technology will be to prevent disease progression for both pre-cancer and cancer patients, with laboratory tests on this new technology expected to begin in the third quarter. 

By Q3, 2022, the Joint Venture is expected to submit a class III medical device registration application to the Chinese National Medical Products Administration. 

Management Commentary

In a statement, Dr. Chris Yu, CEO and Chairman at ANPC, had the following to offer:

We are very pleased to have launched this very meaningful and important project with a lot of momentum. This cancer treatment technology is novel, and this investment gives AnPac Bio significant advantages in terms of technology extendibility, cost control, customer sharing and business synergy.

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

The Bottom Line

The bottom line here is simple, the news released by ANPC proved to be overwhelmingly positive. Through the new Joint Venture, the company will take part in the development of new technology that could be the center of a regulatory application as soon as next year. All in all, if that’s not exciting, you’re not a biotech investor.