OCX stock is plunging Wednesday. Why? The more than 30% drop occurred after OncoCyte Corporation (NYSE:OCX) provided a mid-year update, which principally discussed the company’s CLIA Validation study of DetermaVu™.
Here’s what we know.
OCX Stock Drops More Than 30%
Based in Alameda, California, OncoCyte Corporation is a company that focuses on developing novel, non-invasive tests used to detect cancer. The company focuses on detecting cancer early on, as this can improve the patient’s quality of life and reduce the cost of care. Since late April, OncoCyte has been conducting a liquid biopsy test for lung cancer; the test is referred to as the CLIA Validation study of DetermaVu™.
While investors have been excited to see the data, OncoCyte now says it’ll need more time to complete the test. The company also said it will not release the final data until further work is done; this ensures the company “provides the most consistent, sensitive results for patients,” according to the press release.
Speaking on the news, CEO William Annett said: “Our talented R&D professionals and CLIA lab staff are working diligently to analyze and address the remaining steps needed to proceed with the CLIA Validation study.” Annett added that “once these teams have made progress with these remaining steps, management intends to provide an update on the timing of the key milestones for DetermaVu™.”
And yet, the market reacted as if OncoCyte Corporation didn’t provide any reassurance. According to Yahoo Finance, at the time of writing, OCX stock is trading at $2.5; this puts OCX stock down 37.34%.
What do you think about OncoCyte requiring additional time to complete its CLIA Validation study of DetermaVu™? Would you rather the company provide adequate results rather than fast results? Let us know your thoughts in the comments below and don’t forget to check to see where OCX stock ends the week.
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