U.S. equity market has rebounded sharply in trading today as market sentiment has been lifted by some positive economic data from Europe and China. All three major indexes have risen sharply. Among the biggest gainers on the Nasdaq today is Genetic Technologies Limited (ADR) (NASDAQ: GENE), an Australia-based company providing genetic testing services.
GENE shares are surging after the company today said that its wholly-owned subsidiary Phenogen Sciences Inc. executed an agreement with InterWest Health of Missoula, Montana, U.S. to use the InterWest provider network. A regional provider, InterWest Health services seven states in north-west U.S. The states include Montana, Idaho and Washington.
This is the eighth such agreement executed between GENE and similar U.S. Preferred Provider Organizations (PPOs). Apart from InterWest Health, the company has executed agreements with FedMed Inc., MultiPlan Network, Three Rivers Provider Network, Prime Health Services, National Preferred Provider Network/PlanCare America/Ohio Preferred Network LLC, Galaxy Health Network and Fortified Provider Network. These agreements are certainly benefiting GENE as evidenced by the company’s performance during the quarter ended June 30, 2013. During the quarter, the company received a record number of BREVAGen™ test samples. Total patient samples received during the quarter stood at 599, which represents growth of over 48% on a quarter-over-quarter basis.
For the first six months of 2013, total BREVAGen™ test samples received stood at 1,547, which represents a growth of over 272% on a year-over-year basis.
GENE, recently, also executed a merger agreement with Sydney-based Simavita Holdings Limited. The agreement was executed by the company’s Canadian-listed subsidiary, Gtech International Resources Limited. Gene Technologies CEO Alison Mew said that the company is extremely pleased that Gtech entered into a transaction that will see all of its shareholders, including GENE, benefit from the planned expansion of the exciting Simavita business into the huge North American market and beyond. Mew also said that the transition of management to the incoming Simavita team will allow Genetic Technologies to maintain focus on the expansion of its U.S. business through the growth of its flagship BREVAGen™ test.
Apart from these positive developments, GENE is also expected to benefit from an increase in demand for genetic testing. According to a study conducted by the research arm of UnitedHealth Group, spending on genetic testing in the U.S. alone is expected to be between $15 billion and $25 billion by 2021. UnitedHealth expects double digit growth over the next few years. GENE, with its recent developments, is certainly well-positioned to capitalize on this growth. Not surprisingly, the company’s shares have been seeing increasing interest from investors.
GENE shares have surged in trading today, striking an intra-day high of $2.81. At last check, the stock was trading 24.09% higher at $2.73. The rally today has pushed GENE shares above their 50-and 200-day moving averages, which is a strong bullish signal. The bullish trend is further confirmed by the MACD chart. The MACD has crossed over the signal line. GENE shares are expected to face resistance at around $2.80. If the stock breaks through this level then the next resistance level will be at around $3.
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GENE shares are surging after the company today said that its wholly-owned subsidiary Phenogen Sciences Inc. executed an agreement with InterWest Health of Missoula, Montana, U.S. to use the InterWest provider network. A regional provider, InterWest Health services seven states in north-west U.S. The states include Montana, Idaho and Washington.
This is the eighth such agreement executed between GENE and similar U.S. Preferred Provider Organizations (PPOs). Apart from InterWest Health, the company has executed agreements with FedMed Inc., MultiPlan Network, Three Rivers Provider Network, Prime Health Services, National Preferred Provider Network/PlanCare America/Ohio Preferred Network LLC, Galaxy Health Network and Fortified Provider Network. These agreements are certainly benefiting GENE as evidenced by the company’s performance during the quarter ended June 30, 2013. During the quarter, the company received a record number of BREVAGen™ test samples. Total patient samples received during the quarter stood at 599, which represents growth of over 48% on a quarter-over-quarter basis.
For the first six months of 2013, total BREVAGen™ test samples received stood at 1,547, which represents a growth of over 272% on a year-over-year basis.
GENE, recently, also executed a merger agreement with Sydney-based Simavita Holdings Limited. The agreement was executed by the company’s Canadian-listed subsidiary, Gtech International Resources Limited. Gene Technologies CEO Alison Mew said that the company is extremely pleased that Gtech entered into a transaction that will see all of its shareholders, including GENE, benefit from the planned expansion of the exciting Simavita business into the huge North American market and beyond. Mew also said that the transition of management to the incoming Simavita team will allow Genetic Technologies to maintain focus on the expansion of its U.S. business through the growth of its flagship BREVAGen™ test.
Apart from these positive developments, GENE is also expected to benefit from an increase in demand for genetic testing. According to a study conducted by the research arm of UnitedHealth Group, spending on genetic testing in the U.S. alone is expected to be between $15 billion and $25 billion by 2021. UnitedHealth expects double digit growth over the next few years. GENE, with its recent developments, is certainly well-positioned to capitalize on this growth. Not surprisingly, the company’s shares have been seeing increasing interest from investors.
GENE shares have surged in trading today, striking an intra-day high of $2.81. At last check, the stock was trading 24.09% higher at $2.73. The rally today has pushed GENE shares above their 50-and 200-day moving averages, which is a strong bullish signal. The bullish trend is further confirmed by the MACD chart. The MACD has crossed over the signal line. GENE shares are expected to face resistance at around $2.80. If the stock breaks through this level then the next resistance level will be at around $3.
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