Predictive Technology Group Inc (OTCMKTS: PRED) is eyeing further gains after a pullback from this year highs. After a minor correction at the end of the first quarter, the stock has once again started rallying on the back of high turnover in traded shares.
PRED Catalysts And Price Analysis
A spike in share price and market activity follows the completion of Taueret Laboratories acquisition at the end of March. With the acquisition, the company is well positioned to strengthen its molecular clinical and research capabilities further as it seeks to accelerate new product development.
In the recent past, the company has also confirmed the expansion of a new research and development facility on the University of Utah’s campus. Predictive Technology has also integrated sales and marketing team of its FlagshipHealth Group as it seeks to ensure control and growth of its sales and marketing efforts.
The stock taking off in response to recent developments does not come as a surprise. With the short-term momentum turning bullish, Predictive Technology could as well be on its way to 52-week highs of $3.08 level.
Standing in the way of Predictive Technology, powering high after the recent pullback is the $3 technical resistance level. A violation of the resistance level should reaffirm the stock’s breakout credentials, setting the stage for further rallies.
Conversely, failure to breach the $3 resistance level could see price action activity limited to a range of between $3 and $2, as has been the case in recent weeks.
What Does Predictive Technology Do?
Predictive Technology is engaged in the development and commercialization of discoveries and technologies, involved in molecular diagnostic and pharmaceutical therapeutic. The company’s primary goal is to revolutionize patient care through predictive data analytics and novel gene-based diagnostics.
After a short period of consolidation, Predictive Technology has started surging as investors react to a string of positive developments set to strengthen the company’s core business. The acquisition of clinical and research molecular laboratory Taueret Laboratories for $9.4 million and $1.2 million in the form of restrictive common stock is one of the reasons why the stock is flying high.
With the acquisition, Predictive Technology gains access to a highly experienced staff supported by an unparalleled molecular clinical and research facility.
“We plan the immediate use of our laboratory to develop a suite of new clinical tests for the reproductive health market. We expect this newly acquired laboratory to accelerate the commercialization of our current tests and provide additional capacity as our tests gain momentum,” said Bradley C. Robinson, CEO of Predictive Technology Group.
Following the acquisition, Predictive Technology has invested $4.2 million to enhance the 15,000 square foot Laboratory instrumentation, to support a wide array of clinical operations.
Predictive Technology has also completed a build-out of a new production laboratory and R&D facility for its subsidiary, Predictive Biotech as part of the expansion drive. The refurbished 22,000 square foot facility will now feature ISO 7 cleanroom and 18 ISO production hoods.
The expansion paves the way for Predictive Technology to scale in a bid to meet production and sales needs. The expanded Laboratory facility should also allow the company to accelerate product development as it also explores new areas that will add to the current portfolio of companies.
Predictive Technology has since integrated its sales and marketing teams as it seeks to accelerate sales efforts across all its subsidiaries. The integration has mostly targeted FlagshipHealth Group, a Minneapolis set based strategic sales and consulting services firm.
“As we move forward to fully address important challenges, such as clinical trial research for certain indications and reimbursement strategies, we are fortunate to have a team that has demonstrated a tremendous understanding of the complexity and stakeholder diversity of Predictive subsidiaries and their markets,” explained Mr. Robinson.
Predictive Technology is an interesting pick as it continues to send shockwaves as a leader on the use of data analytics for disease identification. The company has completed a string of acquisitions that strengthen its prospects in the sector.
Expansion and integration of sales and marketing teams pave the way for the company to generate significant value as it moves to market its products. The stock spiking higher after a recent pullback could as well signal renewed investor interest. As it stands, Predictive Technology remains well supported for further upside action.
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Disclosure: We have no position in PRED and have not been compensated for this article.