Predictive Technology Group Inc (OTCMKTS: PRED) is flying higher after reporting a tenth consecutive quarter of revenue growth. The Company achieving significant progress in the building of a strong infrastructure for supporting development and commercialization of genetic-based diagnostics also continues to excite investors, consequently fuelling the upswing.
Predictive Technology Group Price Analysis
A 200% plus spike since the start of the year affirms renewed investor interest after the underperformance of the past year. The spike has since catapulted the stock to all-time highs with the upward momentum showing no signs of slowing down.
Pullbacks have so far presented entry positions from where bulls have come in and continued to push the stock up. As it stands, support on pullbacks, from current highs, is seen at the $3.20 level from where the stock commenced the current leg higher.
Above the critical support level, Predictive Technology Group remains supported for further upside action on minor corrections. Conversely, a breach of the support level could elicit some pressure, downwards, which could result in the stock plunging back to the $2 level, the next substantial support level.
In our view, Predictive Technology Group is likely to continue climbing the ladder as the upward momentum continues to gather pace.
What Does Predictive Technology Group Do?
Predictive Technology Group is engaged in the development and commercialization of discoveries and technologies for novel molecular diagnostics and pharmaceutical therapeutic human cells. The Company offers ARTguide, a genetic diagnostic and prognostic test for women struggling with endometriosis.
Revenue Growth Milestone
Predictive Technology Group strong price performance in recent weeks is in response to investor’s reaction to an impressive earnings report that signifies underlying growth. The company reporting revenues of $11.3 million, representing a 167% increase marked the tenth consecutive quarter, of sequential revenue growth.
Revenue for the nine months ended March 31, 2019, were up 217%, exceeding the $30 million mark. The company has since seen its cash flow from operations exceed the $ 3.1 million as the race for shareholder value continues to gather pace.
Predictive Technology Group has also achieved a significant milestone that positions it for accelerated growth going forward. For starters, the Company is currently operating from a state of the art production laboratory and R&D facility.
“We also finalized the integration of Taueret Laboratories and Inception Dax into Predictive Laboratories, providing us with a CAP/CLIA-accredited laboratory for processing our genetic-based tests. We strengthened our Board with the appointment of independent directors with exceptional industry, public affairs, financial and governance experience,” stated CEO Bradley Robinson.
Clinical Studies Progress
The future looks bright for Predictive Technology Group after yet another stellar performance in the third quarter. Clinical studies are progressing well, pointing to what could end up being a record year on revenue generation as well as operational efficiency.
The Company has already reached an enrollment milestone of 200 participants as part of an ongoing Institutional Review Board of the spine and joint disease, leading to chronic pain. The primary objective of the study is to conduct genetic research on the diagnosis, treatment, and prevention of conditions causing chronic pain.
In addition, the Company has signed a letter of intent with IQVIA through its wholly owned subsidiary Predictive Biotech as it seeks to commence clinical trials for Osteoarthritis of the knee. The two are joining forces to accelerate the process of identifying and executing appropriate regulatory pathways for existing products and future product candidates.
“This OA of the knee study is the first of several trials that Predictive Biotech intends to conduct for our cellular therapy injectable products. We are excited to leverage IQVIA’s expertise as we expand our focus from human cell and tissue products (HCT/Ps) into the biopharmaceutical market,” said Predictive Biotech CEO Eric Olson.
Predictive Technology Group has risen an impressive 200% in 2019 in what is turning out to be a break out year. The spike comes on investors taking note of the company’s revenue run rate as well as the progress made on the development of precision therapeutic treatments targeting various conditions.
A spike in share price has left the Company well positioned to secure NASDAQ listing that would mark a significant milestone as part of the growth strategy. As it stands, the stock looks set to continue powering higher as underlying developments and fundamentals continue to strengthen investor confidence.
In our view, pullbacks should provide exciting entry positions, for buying the stock at a discount, pending further upside action.
We will be updating our subscribers as soon as we know more. For the latest updates on PRED, sign up below!
Disclosure: We have no position in PRED and have not been compensated for this article.