GREAT BASIN SCIENT COM USD0.0001(POST SPLIT) (OTCMKTS:GBSN) is a penny play that has started to engage some focus among traders and investors as prices get a little traction in bounce mode. The primary reason for the upward action this week is the company’s announcement that they have submitted a 510(k) for the Stool Bacterial Pathogens Panel to the U.S. Food and Drug Administration. According to the release, “upon anticipated clearance, this syndromic panel for the identification of bacterial causes of acute gastroenteritis will be the company’s second multiplex panel in its growing menu of sample-to-result assays to diagnose infectious disease. The Company is also seeking CE marking for the panel.”
Traders will note 34% piled on for shareholders of the name during the trailing week, but that move comes in the context of a larger bearish trend. Market participants may want to pay attention to this stock. GBSN has evidenced sudden upward volatility on many prior occasions. What’s more, the stock has seen interest climb, with an increase in recent trading volume of approaching 150% above the average volume levels in play in this stock over the longer term.
GREAT BASIN SCIENT COM USD0.0001(POST SPLIT) (OTCMKTS:GBSN) bills itself as a company that Great Basin Scientific, Inc., a molecular diagnostic testing company, develops and commercializes molecular diagnostic systems that are designed to test hospital-acquired infections.
The company’s platform provides C. diff test, a rapid medical diagnostic test for the detection of C. diff, a gram-positive bacteria that causes severe diarrhea and other intestinal disorders. It also provides Group B streptococcus test, which is used to detect Group B streptococcus from an anal/vaginal swab of a pregnant woman.
Great Basin Scientifics’ assays in clinical trials include Staphylococcus identification and resistance blood infection panel that is designed to identify species of staphylococcus infections, detect the mecA gene that confers drug resistance directly from positive blood cultures, and provide information on the antibiotic resistance profile of the bacteria; and Shiga toxin producing Escherichia coli (E. coli) test that identifies shiga toxin produced by E. coli.
Its assays under development include Staphyloccocus aureus (SA) pre-surgical nasal screen, a rapid test for the presence of SA in the nasal passages of a pre-surgical patient; Stool bacterial pathogenic panel, which is designed to detect the causes of food poisoning; Candida blood infections panel that is designed to identify the five species of Candida directly from positive blood cultures; Pertussis test for contagious respiratory disease caused by the bacterium Bordetella pertussis; and CT/NG test for chlamydia tracomatis/neisseria gonorrhoeae.
The company sells its diagnostic tests through a direct sales force in the United States, as well as through distributors in the European Union and New Zealand. The company was formerly known as Diagnostic Micro Arrays, Inc. and changed its name to Great Basin Scientific, Inc. in April 2006.
Great Basin Scientific, Inc. is headquartered in Salt Lake City, Utah.
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As noted above, the company just made a 510(k) submission to the FDA, along with other recent moves. The FDA has 90 days to respond to that submission. “Great Basin has received clearance for its previously-submitted products at, on average, 176 days from submission. With that timeframe as our benchmark, we are preparing for commercial launch of the Stool Bacterial Pathogens Panel late in the first half or early second half of 2017,” said Ryan Ashton, co-founder and Chief Executive Officer of Great Basin Scientific.
He continued, “As the demand in healthcare grows for more targeted and cost-effective diagnostic panels, we’re excited about the potential of our Stool Bacterial Pathogens Panel to fill a critical market niche. By taking a syndromic approach to our panel – testing based on specific set of symptoms – our objective is to offer a simple-to-use, competitively priced panel that is easy for labs and physicians to adopt that will combat misdiagnosis and the spread of infectious disease while improving the antimicrobial stewardship objectives of these facilities.”
Now commanding a market cap of $2.4M, GBSN has about $800K in unrestricted cash on the books, which must be weighed relative to a veritable mountain of current liabilities in excess of $87.4 million. This is a nightmare of a balance sheet, and is the primary reason for the stock’s complete meltdown over the past year.
Note, GBSN is making real money, with trailing 12-month revenues coming in at 2.81M. In addition, the company is seeing major top line growth, with y/y quarterly revenues growing at 34.8%. Hence, it’s not all bad. Moreover, this is an exciting story, and we look forward to a follow-up chapter as events transpire. For continuing coverage on shares of $GBSN stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!
