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Biotech

Lexagene (OTCQB: LXXGF) (TSX-V:LXG) Bear Run Persists Amidst Pathogen Detection Instrument Milestone

LexaGene Holdings Inc. (OTCQB: LXXGF) (TSX-V:LXG) has not had the best of runs in the market, despite serving a number of catalysts that were expected to strengthen its sentiments in the market. Since the start of the month, the stock has shed more than 20% in market value.  The stock is down by 10% for the year after a solid start to 2018 that saw it skyrocket to the $1.10 level.

Price Action

Focusing on recent price action, it goes without saying that the stock remains susceptible to further declines as it is currently trading in a steep downtrend. A breach followed by a close below the $0.68 level could open the door for the stock to plummet to the $0.40 level, seen as the next support level.

However, the stock could also bounce back on investors taking note of recent developments that have shown the company has what it takes to pursue growth opportunities in multiple multibillion-dollar industries.

Pathogen Detection technology development

Lexagene has made remarkable strides in the development of its pathogen detection technology. Designed for healthcare providers and food safety officers, the technology has the potential to strengthen the company’s prospects in the industry.

In addition to being able to identify E.coli and Staph bacteria in samples, the technology is also capable of generating data. The technology can also process six samples at a time while searching for over 22 pathogens and return results in about one hour.

“Generating data with the prototype is a monumental milestone for the Company, especially given that we are at such a critical moment in society right now with new foodborne illnesses happening so frequently,” said Dr. Jack Regan, LexaGene’s CEO.

Focus now shifts towards optimizing the performance of the instrument with a view of equipping it with reagents capable of detecting more diseases such as Salmonella and Listeria.  Advancing the technology should allow Lexagene to provide a far much better technology that can reduce chances of shipping contaminated food items.

The technology should also make it easy for doctors to diagnose sick patients effectively. For starters, it will help healthcare professionals treat their patients with more targeted therapies while still in the facility.  In a bid to enhance the development of the pathogen detection technology, LexaGene has partnered with Stanford School of Medicine, Texas A&M as well as Ethos Veterinary.

Strategic Partnerships

In partnership with Stanford School of Medicine, the company is to combine its microfluidic technology with the institution’s targeted sequencing technology. The integration should allow the company to enhance its technology’s capability to include cancer diagnostics as well as Next Generation Sequencing.

Ethos Veterinary Health on its part has agreed to supply the company with canine urine samples for testing in LX6 prototype. Texas A&M also joins a growing list of collaborators sending samples which will allow LexaGene to refine its assays and optimize its pathogen detection system.

LexaGene is in the right direction on the execution of its business plan. The recent bear run in the stock cannot in any way be attributed to the company’s underperformance. That said the stock should bounce back as it moves to commercialize its pathogen detection technology.

 

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