Check Cap Ltd (NASDAQ: CHEK) is having an overwhelmingly strong start to the trading session this morning after the company announced the publication of clinical data. Of course, the news proved to be overwhelmingly positive, leading to excitement among investors and sending the stock on a tear for the top. Today, we’ll talk about:
- The data;
- what we’re seeing from the stock as a result;
- and what we’ll be watching for ahead.
CHEK Heads For The Top On Data Publication
As mentioned above, Check Cap is having an incredibly strong start to the trading session this morning after news broke that data has been published. In a press release issued early this morning, the company announced the results of a multicenter clinical study. The study assessed C-Scan®, a colorectal screening product, and the safety and efficacy associated with it. In the release, CHEK said that the data was published in Gut, an official peer-reviewed journal of the British Society of Gastroenterology.
In the release, the company said that 45 patients were analyzed. Capsule and FIT sensitivity were 44% and 37%, respectively. Also, capsule sensitivity increased to 78% when >50% of the colon surface area was imaged and a linear correlation was observed between imaged area and sensitivity. In a statement, Nadir Arber, Principal Investigator and Professor of International Medicine and Gastroenterology as well as the Head of the Health Promotion Center and Integrated Cancer Prevention Center at the Tel-Aviv Sourasky Medical Center, had the following to offer:
I believe that results from the multicenter clinical study have demonstrated that the C-Scan imaging capsule is safe, well tolerated, and can correctly identify polyps with the majority of the colon imaged… The risk of false polyp identification has been shown to be consistently low. Overall, we see the potential for C-Scan to overcome barriers to colorectal cancer screening (CRC), given its lack of requirement for bowel and other cathartic preparations.
The above statement was followed up by Alex Ovadia, CEO at CHEK. Here’s what he had to offer:
We are pleased to share the publication of our multicenter clinical study results in Gut, a prestigious, peer-reviewed international medical journal. The data demonstrated the system’s safe passage, ultra-low radiation exposure and ability to identify polyps without the need for bowel preparation, a major deterrent to CRC screening. We will continue to evaluate our C-Scan Version 3 system in the ongoing EU post approval study, with interim results expected in Q3 of 2018. We intend to continue to execute on our plan to commercialize our proprietary C-Scan system, and to provide patients with a preparation free alternative for pre-cancerous polyps screening in the colon.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. In this particular case, the news proved to be overwhelmingly positive. After all, the data suggests that Check Cap’s work is going to pay off handsomely. So, it’s no surprise that excited investors are sending the stock toward the top int he market this morning. As is almost always the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (8:50), CHEK is trading at $5.14 per share after a gain of $0.66 per share or 14.73% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on CHEK. In particular, we’re interested in following the story surrounding the company’s ongoing work with regard to C-Scan as the diagnostic tool seems to be rendering promising results. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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