Transgenomic Inc (NASDAQ: TBIO)
Transgenomic is off to an incredibly strong start to the trading session today. In pre-market trading, the stock spiked more than 200%. While it has taken a bit of a dive since the opening bell, the stock is still trading on overwhelmingly impressive gains. Below, we’ll talk about what we’re seeing from TBIO, why, and what we’ll be watching for ahead.
What We’re Seeing From TBIO
As mentioned above, Transgenomic is having an overwhelmingly strong day in the market today. In pre-market trading, the stock climbed dramatically on news of a licensing agreement, which we’ll talk about later. When the opening bell rang, the stock was trading up well above 200%. However, since the bell, we’ve seen a bit of a correction. Currently (9:37), TBIO is trading at $0.85 per share after a gain of $0.56 per share (193.64%) thus far today.
Why The Stock Is Gaining
As is almost always the case, our partners at Trade Ideas were the first to inform us of the gains on TBIO. As soon as they did, the CNA Finance team started digging to see exactly what was causing the movement. It didn’t take long to uncover the story in this case. It seems as though the gains are being caused by the fact that the company has announced a licensing agreement.
Early on in the pre-market hours, Transgenomic announced that it had entered into a licensing agreement surrounding the company’s ICE COLD-PCR technology. According to the release, Canadian laboratory services provider, LifeLabs has chosen the company’s technology as its mutation enrichment platform for cancer testing. Of course, this made investors excited and sent the stock upward.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on TBIO. In particular, we’ll be watching for more licensing agreements to come down the line. After all, this was just one agreement, and we see what it can do to a stock. We’ll keep tabs on the news and be sure to bring it to you as it breaks!
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[Image Courtesy of The Blue Diamond Gallery]