Nanosphere (NSPH) Stock Climbs On FDA Clearance

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Nanosphere, Inc. (NASDAQ: NSPH)

Nanosphere is having an incredible day in the market today after announcing that it has received 510(k) clearance from the United States Food and Drug Administration for its Verigene Respiratory Pathogens Flex Nucleic Acid Test (RP Flex) on the automated sample-to-result Verigene System. Today, we’ll talk about the Verigene system, why the clearance from the FDA is so important, what we’re seeing in the market, and what we can expect to see moving forward. So, let’s get right to it…

What Is The RP Flex?

The RP Flex is the first test of its kind. It features Nanosphere’s novelFlex software which allows the 16 viral and bacterial targets identified by RP Flex to be reported as a full multiplex panel or in various user-defined subsets. Separate targets can be ordered for each patient and the lab only pays for the targets that are ordered. This “flexible panel” concept addresses the varied respiratory testing needs of labs and clinicians with a single, comprehensive, yet cost effective solution. During the announcement of the FDA clearance, Paul Granato, Ph.D., Director of Microbiology at the Laboratory Alliance of Central New York and Professor Emeritus of Pathology at SUNY Upstate Medical University had the following to say…

The demand and need for respiratory pathogen testing varies by season, geography, epidemiology and patient demographics… RP Flex is the first respiratory test that provides labs with the flexibility to choose and pay for only the microbial targets applicable to a given patient, which in turn allows them to practice better test stewardship and reduce healthcare costs.”

How The Market Reacted To The News

As mentioned above, Nanosphere is having an incredible day in the market today. After all, it’s what we’ve come to expect anytime we hear good news from a biotechnology company. Currently (1:06), NSPH is trading at $3.04 per share after a gain of 12.59% so far today.

What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from Nanosphere. The reality is that the clearance from the FDA will eventually open the door to tremendous profit potential for the company and should lead to more gains in the value of the stock. It is important, however, to remember that price movements in the market tend to happen through a series of overreactions. With that said, we can expect to see slight declines tomorrow as investors drive the stock down to a more manageable rate. However, after the slight correction that’s likely to come tomorrow, NSPH should have plenty of room to run up!

What Do You Think?

Where do you think NSPH is headed and why? Let us know in the comments below!

[Image Courtesy of IDEO]

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