Biocept Could Double on Liquid Biopsy Leadership: H.C. Wainwright

In illiquid premarket trading, Biocept Inc BIOC is indicated 6 percent higher – to $2.08 – following a bullish note from H.C. Wainwright & Co. analyst Yi Chen. Chen, who has a Ph.D. in biochemistry, is unequivocally optimistic on Biocept's liquid biopsy technology, which he said provides a "less invasive and less expensive" way to test for biomarkers in breast, lung, gastric and colorectal cancers. Further, the company plans to launch testing for additional biomarkers, Chen pointed out.

In addition, Chen argued that Biocept management is executing, highlighting collaboration with research institutions. "Since Biocept has recently launched multiple tests targeting multiple cancer sites, we expect sales from commercial cases to continue to ramp up quickly," he said. In the liquid biopsy market, Chen predicted that the company has the "most advanced technology" and can offer the "most tests in terms of cancer sites and biomarkers."

Against this backdrop, Chen said that the shares as of Tuesday's close were undervalued by half, particularly "given that its cancer tests have been generating commercial sales and have considerable market potential." The $4 price target will give Biocept a market capitalization of $98 million.

Shares are quite volatile, with prices in February trading from below $1.20 to above $4.75 within a few days. As of Tuesday's $1.96 closing price, the stock has shed 21 percent year-to-date. Most recently, shares have slid from $3.30 in June to below $2 at present.