Is regulatory approval the be-all and end-all for medical sector investors? Maybe or maybe not, but it’s certainly a big deal for the stakeholders of Check-Cap (NASDAQ:CHEK), as one piece of news can substantially move the CHEK stock price.
For folks who’ve been waiting patiently, I’m happy to report that there’s positive news on the regulatory front for Check-Cap.
In fact, it’s a development that will allow the company to move forward with clinical studies of its main medical product. So really, this is a game changer.
Want more details, and even some price targets? No problem — let’s have a sit-down and go over the stock’s price history, and perhaps even venture a guess as to where the shares might be headed.
CHEK Stock at a Glance
So, should you pick up the CHEK (stock, that is)? At the very least, we can say that this particular stock won’t weigh down your portfolio too much. After all, it’s a penny stock that’s trading for less than $5.
The share price landed at 46 cents at the end of 2020. As it turns out, that would have been a terrific entry point. In early January, CHEK stock shot up to $1.73, though this was followed by a sideways period of consolidation.
Greater things were in store, as the buyers catapulted the share price to a 52-week high of $4.49 on March 15.
Value-focused investors should be glad to know that they won’t likely have to buy at the peak price. That’s because CHEK stock had pulled back below $2 by March 26.
What’s next for the stock? $3.50 should be a significant target for the bulls. If and when they get there, the bulls should start looking to recapture the key $4.50 level.
And by the way, it’s great news that CHEK stock traded above $1 recently. That’s because the Nasdaq Exchange has been known to sometimes de-list stocks that trade below $1 for a long time.
Targeting Cancer, Enhancing Patient Compliance
Colorectal cancer screening isn’t something that most people look forward to. Yet, adults will often choose to get this type of screening from a medical professional on a regular basis.
With its main product, C-Scan, Check-Cap is attempting to redefine colorectal cancer screening and prevention as we know it.
Check-Cap claims that C-Scan is “the first and only patient-friendly preparation-free test to detect polyps before they may transform into cancer.”
There’s a lot to like about C-Scan. From their site:
- Disruptive capsule-based screening technology
- Uses ultra-low-dose X-rays
- Integrated positioning, control, and recording system
- Proprietary software to generate a 3D map of the inner lining of the colon
- Comparatively high sensitivity at detecting precancerous polyps
- Demonstrated high patient compliance in clinical trials
- Patient-friendly, requiring no preparation or sedation
- Allows the patient to continue his or her daily routine with no interruption
Moving in the Right Direction
As the company explains, the capsule “is propelled through the gastrointestinal tract by natural motility.”
Thus, C-Scan not only has the potential to detect dangerous polyps promptly, but also to maintain the patient’s dignity as much as possible.
And here’s where the rubber meets the road: on March 15, Check-Cap revealed that the U.S. Food and Drug Administration (FDA) approved the company’s Investigational Device Exemption (IDE) application for C-Scan.
With this approval, Check-Cap will be able to commence a study of C-Scan in the U.S.
Regarding this, Check-Cap CEO Alex Ovadia reported, “We are in active discussions with a number of clinical sites as part of our preparations to begin the pivotal study in late 2021.”
Moreover, on the financial front, Check-Cap seems to be in a solid fiscal position. At the end of last year, the company reportedly maintained cash and cash equivalents, restricted cash and short-term bank deposits of $18.1 million.
That’s a significant improvement compared to the $8 million recorded at the end of 2019. So, evidently Check-Cap is moving in the right direction, in more ways than one.
FDA approval isn’t everything, as it’s also important for a company to be in a good financial position.
Thankfully for the patients and the stakeholders – even after giving Check-Cap a thorough checkup and conducting a fact-check – everything still checks out.
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On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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