Market Overview

HTG Molecular's Deal With Merck KGaA 'Provides Further Validation' For EdgeSeq Technology

Share:
HTG Molecular's Deal With Merck KGaA 'Provides Further Validation' For EdgeSeq Technology
Related HTGM
24 Stocks Moving In Friday's Pre-Market Session
A Peek Into The Markets: US Stock Futures Climb Ahead Of Economic Reports

HTG Molecular Diagnostics Inc (NASDAQ: HTGM), a provider of instruments, reagents and services for molecular profiling, announced Tuesday a new master collaboration agreement with Germany's Merck KGaA(ADR) (OTC: MKKGY). 

The agreement complements HTG Molecular's previously announced master companion diagnostic agreement with Merck KGaA, and also includes a statement of work with the latter's biopharma business, EMD Serono, in the U.S. and Canada.

The Analyst

H.C. Wainwright analyst Raghuram Selvaraju reiterated a Buy rating and $6 price target for the shares of HTG Molecular.

The Thesis

The collaboration expansion further validates HTG Molecular's EdgeSeq technology, Selvaraju said in a Wednesday note. (See the analyst's track record here.) 

HTG already has two statements of work under its master assay development agreement with Qiagen NV (NASDAQ: QGEN)'s Qiagen Manchester Limited, or QML, and a supplement agreement with QML and Bristol-Myers Squibb Co (NYSE: BMY), for the development of next-gen sequencing-based companion diagnostic assays.

"We continue to believe that the majority of HTG's future revenue growth could be driven by service for biopharmaceutical customers and potential recurring revenues from commercialized companion diagnostics," Selvaraju said. 

EdgeSeq technology is being used in a clinical trial with Illumina, Inc. (NASDAQ: ILMN)'s NGS technology to investigate a novel therapeutic approach using a combination of three targeted therapies for the first-line treatment of patients with advanced non-small cell lung cancer, according to H.C. Wainwright. 

If these therapies using EdgeSeq technology are successful, the analyst said he sees better future financial prospects for HTG Molecular.

Additionally, module four of the pre-market approval, or PMA, for the ALKPlus assay is on track for submission in the second quarter of 2018, the firm said.

"The HTG EdgeSeq ALKPlus assay is an in vitro diagnostic intended to measure and analyze mRNA ALK gene rearrangements in formalin-fixed, paraffin-embedded lung tumor specimens from patients diagnosed with non-small cell lung cancer," according to H.C. Wainwright. 

The Price Action

HTG Molecular shares, which were down over 13 percent year-to-date until Tuesday, are poised to move into the green for the year in the wake of the announcement.

HTG Molecular was soaring 12 percent to $2.17 at the time of publication. 

Related Links:

HTG Molecular Diagnostics Up Nearly 400% In 2 Days

HTG Molecular Rally Runs Out Of Steam

Latest Ratings for HTGM

DateFirmActionFromTo
Mar 2018Canaccord GenuityMaintainsBuyBuy
Aug 2016Rodman & RenshawInitiates Coverage onBuy
Aug 2015Canaccord GenuityMaintainsBuy

View More Analyst Ratings for HTGM
View the Latest Analyst Ratings

Posted-In: H.C. Wainwright Raghuram SelvarajuAnalyst Color Health Care Price Target Reiteration Analyst Ratings General Best of Benzinga

 

Related Articles (BMY + HTGM)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
AITKeyBancUpgrades0.0
MDCitigroupUpgrades0.0
PUMPBarclaysUpgrades20.0
ECPGOppenheimerUpgrades37.0
RACEBernsteinUpgrades0.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Tax Cut Sends Refiners ETF To Record Highs

What's Next For Bitcoin, Litecoin, Ethereum In 2018?