OpGen Inc. (NASDAQ:OPGN) shares surged as much as 58% to above $7 a share in Wednesday trade. OpGen stock has lost a huge share price within the last twelve months prior to the latest rally. The company’s shares declined more than 55% in the last three months, down 86% in the past twelve months. The stock has the 52-week trading range of $3.27-$33.25.
OPGN shares volume increased to 2.7 million in Wednesday trade, significantly higher from the daily average of 70,765 shares.
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The latest rally was only supported by the growth in its share volume, as there no news that supports the stock rally.
Instead, the company executed a 1:25 reverse split of its common shares last week with the aim of regaining NASDAQ’s listing requirement of the lowest amount $1 bid price. Investors were also raising questions about the company’s cash position.
At the end of the latest quarter, OpGen was left with only $4.9M in cash after consuming an average of $3.7M of cash in the first three quarters of 2017.
On the other hand, the company has been actively working on reducing their expenses and increasing revenue and earnings. In the latest quarter, OpGen declined its operating expenses by 29% compared to the same period last year, representing a decline of $1.6 million.
The company also plans to decline its operating expenses in the range of 25% to 30% the final quarter of FY2017.
Moreover, OpGen management continues to make advancement in its Acuitas Rapid Test for cUTI. The CEO said, “This antimicrobial resistance test is expected to be the first of a series of OpGen tests that will help address the global antibiotic resistance crisis by identifying antibiotic-resistant pathogens in less than three hours. “
Although, the company is working on the strategy of reducing the cash burn rate by lowering expenses and increasing its earnings potential, it’s still significant to see how the company will fund its operations in the following quarters.
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