ANPC Stock: Anpac Bio-Medical Science Achieves Major Breakthrough

AnPac Bio-Medical Science Co Ltd – ADR (NASDAQ: ANPC) is screaming for the top in the market this morning, with premarket gains of more than 100%. The gains come after the company announced that it has made significant progress in screening for pre-cancer diseases. 

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AnPac Bio Announces Pre-Cancer Screening Breakthrough

As mentioned above, AnPac Bio is having a great day in the market today after announcing that it has made a major breakthrough. According to the press release, the company has made significant progress in the detection of pre-cancer diseases. 

The company said that the breakthrough was the result of novel sensor design, sensor fabrication, detection process, signal collection, signal processing, and proprietary algorithms. These have all been validated in multi-year retrospective and prospective, large sample and population studies. 

ANPC went on to explain that it has recently completed a prospective large population screening of more than 150,000 samples from 110,000 individuals. The screenings were completed using the company’s Cancer Differentiation Analysis technology. 

Initial results showed that the technology is able to provide meaningful information while also screening out pre-cancer diseases. More than 20 types of pre-cancer diseases were diagnosed following initial screening using the company’s technology. Moreover, subsequent confirmation was achieved through follow ups with hospital or physical testing center health check-ups. 

Management Commentary

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

We are very pleased to have achieved this significant breakthrough in successfully detecting pre-cancer diseases, which is critical in cancer prevention and saving lives. From a commercialization perspective, this breakthrough has significant ramifications for market and customer needs, and revenue generation potential. AnPac Bio is very proud to be one of the first research groups to have achieved this important technical milestone, which will significantly expand AnPac Bio’s available market size and customer base, and play an important role in revenue generation for years to come.

The Market Opportunity

The reason for the tremendous gains in ANPC stock this morning is very easy to pin down. Ultimately, the news this morning was significant. After all, the cancer diagnostics market is a massive one, and early detection is the most important concept in the market. 

After all, early detection leads to much better outcomes among cancer patients. 

As such, should the data continue to be positive, AnPac Bio could become a cornerstone in the cancer diagnostics market. Keep in mind that we’re talking about a market experts expect to grow to be worth more than $150 billion annually in the coming years. 

Considering the fact that ANPC stock trades with a sub-$50 million market cap, tapping into this market is a massive opportunity. 

Risks to Consider Before Buying ANPC Stock

Any time you buy a stock, you’re accepting risk in exchange for the potential to produce profits. As such, an investment in ANPC stock will come with risks to consider. Some of the most significant of these risks include:

  • Dilution. Dilution is all-bug guaranteed in the future for AnPac Bio-Medical. The fact of the matter is that the company isn’t operating at a profit and isn’t expected to for years to come. As a result, if the company’s balance sheet can’t get it through to profitability, it will likely raise funds through the sale of common stock, leading to dilution for existing shareholders. 
  • Adoption Risks. While the data surrounding the company’s pre-cancer screening is overwhelmingly positive, there have been plenty of products that seemed as though they would be big hits, but flopped in the market. Should these pre-cancer tests hit the market and flop, significant losses could be the result. 

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Final Thoughts

All in all, the news released by AnPac Bio this morning proved to be overwhelmingly positive. While analyst forecasts suggest that it may be years before the company reaches profitability, if these tests become popular, profitability may come far sooner. 

All in all an investment in ANPC stock now may be a tremendous opportunity!