If you like to trade biotechnology sector stocks for profit, then California-headquartered Progenity (NASDAQ:PROG) deserves your attention. Investors with good timing could have doubled their money or even more with PROG stock.
Moreover, even if you have a small- to mid-sized account, you can probably afford to invest in Progenity. The share price is low, so there’s a propensity for volatility, but also the potential for outsized returns.
Of course, you shouldn’t invest in any biotech company until you’ve thoroughly investigated its products and patents, if it has any. Progenity has a robust portfolio of patents and it just keeps on growing in size.
Just as importantly, Progenity is working diligently to address high-need conditions, while also advancing the science of oral drug delivery. So, with all of that in mind, let’s see where PROG stock has been lately, and try to determine some levels to watch.
PROG Stock at a Glance
Buying the dips within an uptrend: this is a trading strategy that has produced good results for skillful investors. Here’s how this concept applies to Progenity. On Aug. 20, you could have bought shares of this company for just 67 cents apiece.
As we mentioned earlier, PROG stock is quite affordable — you could probably buy the shares with pocket change. And if you had purchased them in August, you would have a nice chunk of change today.
In October and early November, the buyers took control, sending the bears into hibernation. By Nov. 19, the Progenity share price had nearly reached $5.
We’re talking about returns in the hundreds of percentage points here. However, even if you missed out on that incredible run-up, you might have another chance to get in on the action.
In early December, PROG stock pulled back to around $2.80. Could the buyers simply be taking a breather and re-loading for another rally? It’s not guaranteed, but enterprising traders don’t have to just sit on the sidelines and watch the action unfold. Just remember, the Progenity share price has gone as high as $7.86 in 2021, so another multi-bagger move could conceivably happen.
Addressing a Clinical Dilemma
According to Progenity’s page for Preecludia, “over 700,000 women present with signs and/or symptoms of preeclampsia each year.”
There’s a pretty good chance that you’re not familiar with preeclampsia. To put it in stark terms, it’s a potentially fatal pregnancy complication.
Never afraid to innovate, Progenity has focused on helping the medical community address this high-need condition. In particular, the company is developing a first-of-its-kind test to assess patients for preeclampsia.
Unfortunately, current triage assessment for preeclampsia can miss up to 50% of adverse neonatal outcomes.
This condition can take a major toll, not only in terms of health-related outcomes, but also financially. Shockingly, the total costs associated with preeclamptic pregnancy are three times that of normal pregnancy.
Thankfully, Progenity has designed the Preecludia rule-out test for preeclampsia.
“For the first time in the US,” according to Progenity, “physicians will have a test based on measuring biomarkers of the underlying pathophysiology of preeclampsia — not just non-specific symptoms.”
Building Out the Patent Portfolio
Potentially, Preecludia will be the first blood test designed to assess risk by evaluating multiple patho-physiological pathways. Importantly, Progenity has already been awarded a patent for one of the key assays associated with Preecludia.
Moreover, this isn’t Progenity’s only patent — not even close. Not long ago, the company garnered four patents related to its ingestible device and method technologies designed to deliver therapeutics via the gastrointestinal tract.
Those new additions brought Progenity’s patent portfolio up to a total of 96 patent families. These include 180 issued patents, as well as over 220 pending applications. Plus, we can now add one more U.S. patent to the company’s collection. This one is related to Progenity’s single-molecule detection platform under development.
Matthew Cooper, general manager of diagnostics, explained that this recently awarded patent “covers critical methods for counting target molecules, obviating the need for sequencing.”
The platform related to this patent is “designed to enable tests such as noninvasive prenatal testing (NIPT) or liquid biopsy for cancer to be performed without the need for costly, complex sequencing,” Cooper added.
The Takeaway on PROG Stock
Low-priced PROG stock is a fast mover and has the potential to rocket higher in a short period of time. Yet, informed investing isn’t just about a stock’s price action — as a company’s shareholder, you have to get to know the business. The good news with Progenity is that it’s a business built to address high-need medical areas, so that all of the stakeholders can benefit.
Check the company’s patent portfolio, and you should agree that Progenity is among the most prolific and innovative biotech firms you can bet on today.
Progenity currently gets a grade of “B” in my Portfolio Grader.
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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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