Precision Therapeutics Inc (NASDAQ: AIPT) is having an overwhelmingly strong day in the market today, and for good reason. The company announced the formation of a wholly owned subsidiary, leading to excitement among investors and sending the stock screaming for the top. Today, we’ll talk about the news, what we’re seeing from the stock, and what we’ll be watching for ahead.
AIPT Announces The Formation Of A New Subsidiary
As mentioned above, Precision Therapeutics is having an incredibly strong day in the market today after announcing that it has formed a wholly owned subsidiary. The new subsidiary, TumorGenisis Inc., was formed to develop what the company considers to be the next generation or patient derived (PDx) tumor models for precision cancer therapy and drug development.
According to the release issued by AIPT, the company formed the new subsidiary in order to develop new, rapid approach to growing tumors in the laboratory. The idea is to fool the cancer cells into thinking they are still growing inside the patient. It is believed that this approach will provide a much more relevant model of the patient tumor that may be used for testing drugs for personalized therapy or for the development of new treatments. In a statement, Dr. Carl Schwartz, CEO at AIPT, had the following to offer:
The TumorGenesis PDx model forms a key part of our strategy to build out our Artificial Intelligence (AI)-based healthcare business. Testing of patient tumors using this brand new approach will a) provide a personalized therapy protocol for a patient, b) provide high-quality data for Helomics’s D-CHIP AI platform and c) drive partnerships with Pharma companies for the development of new therapies.
Traditional PDx mouse models are currently used for personalized therapy decisions and by pharma companies for developing new drugs within a cancer drug market expected to be worth approximately $150 billion in the U.S. alone. Our plans to develop a new, faster approach to growing tumors in the laboratory would represent a major advancement compared with the technology that is already on the market and propel us to the forefront of this revolutionary industry.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news causes the moves. In this particular case, the news surrounding Precision Therapeutics proved to be overwhelmingly positive. After all, the formation of this new subsidiary could become a major value driver for investors ahead. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to follow AIPT. In particular, we’re interested in following the story surrounding the new subsidiary and excited to see the progress with regard to the company’s efforts in a new and personalized approach to the treatment of cancer. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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