What's Going On With Progenity?
Progenity (PROG) stock slid on Wednesday after the company announced a strategy that will focus on improving an R&D pipeline and setting the company up for for future growth. To reach this end, the company will reallocate resources to R&D and cut back on operating expenditures by approximately 70%. Shares of the company were trading lower 13.811% to $2.46 a share on Wednesday.
What Does This Mean For Progenity?
To achieve these goals, Progenity will focus on cost realignment. Moreover, it will no longer offer genetic laboratory-developed test services through its Ann Arbor, Michigan CLIA-certified laboratory and cease offering its Preparent Carrier Test, Innatal Prenatal Screen, Riscover Hereditary Cancer Test, and Resura Prenatal Test. The company will also offer opportunities for non-dilutive capital infusion as it continues on a path to profitability. Finally, the company will increase innovation by developing the drug delivery systems of the future, including its Preecludia pre-eclampsia rule-out test, Drug Delivery System (DDS) platform, and Oral Biopharmaceutical Delivery System (OBDS).
"The strategic transformation presented today seeks to significantly reduce our burn rate by eliminating major costs and reducing our cash needs considerably to a normalized rate of $4-5 million per month (before taking into account non-dilutive sources of capital). Our innovative R&D pipeline has always been core to our future growth plan and has the potential to transform and address significant markets by improving patient outcomes,” said Harry Stylli, PhD, CEO, Chairman of the Board of Directors, and co-founder of Progenity.
Progenity, Inc., a biotechnology company, provides develops and commercializes molecular testing products in the United States. It offers Innatal, a noninvasive prenatal screening test offered to women early in pregnancy to screen for chromosome abnormalities, such as down syndrome, trisomy 18, trisomy 13, and sex chromosome disorders through the analysis of cell-free DNA; Preparent that screens for carrier status of hereditary diseases prior to or early in pregnancy; and Riscover, a hereditary cancer screen that analyzes 31 genes associated with inherited risk of 12 types of cancers, including the BRCA1/2 genes for hereditary breast, ovarian, colorectal, endometrial, pancreatic, and other cancer syndromes, as well as for the five genes associated with Lynch syndrome.
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Progenity Inc is a biotechnology company. It is engaged in developing and commercializing molecular testing products as well as innovating in the field of precision medicine. It utilizes a multi-omics approach, combining genomics, epigenomics, proteomics, and metabolomics, to molecular testing products and to the development of a suite of investigational ingestible devices and drug and device combinations designed to provide precise diagnostic sampling and drug delivery solutions. The firm generates its revenue from molecular laboratory tests, principally from the sale of Innatal, Preparent, and pathology molecular testing. The company's operations are carried out in the United States.
