TrovaGene Inc (NASDAQ: TROV)
TrovaGene is having a rough day in the market today. This is in sharp contrast to what we saw from the stock yesterday. After strong gains followed by steep declines, investors are starting to become concerned. However, should concern be the emotion? In my opinion, the answer is no! Today, we’ll talk about why we saw massive gains on the stock yesterday, why TROV is falling today, and what we can expect to see from the stock moving forward.
Why TROV Climbed In The Market Yesterday
TROV had an incredible day in the market yesterday after announcing that the company has come to an agreement with America’s Choice Provider Network (ACPN). As a result of the positive news, TrovaGene climbed by more than 60% in yesterday’s trading session. So, what is it about this agreement that has investors so excited?
TrovaGene created circulating tumor and DNA Precision Cancer and Monitoring test services. However, in the past, these services were not covered by many insurance providers, leading to relatively poor sales volume. However, as a result of the new deal, insurance coverage is going to change in a big way. As a matter of fact, under the new deal, America’s Choice Provider Network, which includes 1,700 insurance companies in North America, will now cover the costs associated with TROV products. This will naturally increase demand in a big way, leading to positive news in the future from TROV. In a statement, Matt Posard, Chief Commercial Officer at TrovaGene had the following to say:
“We are pleased that ACPN has agreed to provide coverage for TrovaGene’s PCM full offering of ctDNA product. Our commercial plan is on track to provide national sales coverage, and ACPN is the first of several additional contracts expected this year.”
Why TROV Is Falling Today
This is where the concern is coming from. Currently (11:05), TROV is trading at $4.57 per share after a decline of 19.71% so far today. That’s a big decline! However, should consumers be concerned about the declines we’re seeing on TrovaGene? Well, in my opinion, the answer is no! The reality is that market movement tends to happen through a series of overreactions. This means that when we see extravagant gains on a stock, we can expect to see a correction on the value of the stock, bringing it down to a normal rate before growth can continue. This is exactly what we’re seeing from TROV today.
What We Can Expect Moving Forward
Moving forward, I’m expecting to see overwhelmingly positive movement from TROV. The reality is that the new agreement that was recently announced will increase sales, leading to further investor excitement in the future. Also, the Chief Commercial Officer announced that the company is working on other contracts – several of them! These contracts are expected to come down the line by the end of the year. In my opinion, TROV is making all the right moves, and these moves will lead to big gains on their stock moving forward.
What Do You Think?
Where do you think TROV is headed moving forward? Let us know your opinion in the comments below!
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