LexaGene Holdings Inc. (OTCQB:LXXGF) (TSX-V:LXG) is under immense pressure in the market even on achieving a significant milestone in the development of a new rapid pathogen detection prototype . Spiraling short interest pressure now threatens to push the stock to its 52-week lows.
Lexagene Price Action
Short interest is up by 2420% on short interest shares increasing to 12,600 from 500 as of last month. The increase appears to be the latest catalysts pushing the stock lower in the market. Over the past one month, the stock has lost more than 25%.
A breach of the $0.60 handle could see the stock dropping further to the $0.50 level seen as the next support level. The stock needs to rise and stabilize above the $0.70 mark to avert growing concerns of a further slide in the market.
The slide in the market comes as a surprise given that the biotechnology company has achieved significant milestones on the development of a first of its kind pathogen detection technology. Tests already carried on the technology have shown that it can be relied upon, to identify dangerous pathogens of the likes of e-Coli and staph.
LexaGene’s new prototype for pathogen detection is ideal for healthcare providers and food safety officers. For starters, the technology should help reduce chances of shipping contaminated food items, which should allow the company the target the multi-billion food safety industry.
In addition, the technology is capable of identifying the presence of antibiotic resistance bacteria, which should empower healthcare providers on how to better treat patients with targeted therapies. The company has already unveiled a new platform that can analyze up to six samples at a time and identify over 22 pathogens in under an hour.
“We need an easier and less expensive solution to find deadly bacteria like E. coli and Salmonella, whether it is in the food plant or a sick person. LexaGene’s technology will soon be the world’s first easy-to-use, open-access, on-site rapid pathogen detection system that has the potential to change how we prevent and diagnose disease,” said CEO, Jack Regan.
Pathogen Detection Prototype
Lexagene has already inked a number of strategic collaborations as it looks to refine and polish its pathogen detection technology. First on the list are Ethos Health and Texas A&M Veterinary. The two are to supply the biotechnology company with canine urine samples for testing the company’s LX6 prototype
By growing the list of collaborators, the company should be able to get adequate representations of diseases that thrive in different climates. The company has also teamed up with Stanford University School of medicine as it looks to leverage a targeted sequencing technology, to expand its technology capability into cancer diagnostics and next generation sequencing.
In light of recent developments, the company looks set to hit the market with the new technology before the end of the year. Lexagene has already raised C$5 million in new capital, resources expected to go a long way in enhancing the development of the technology.
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