What is prog stock?

By Justin Jones Last updated Nov 6, 2022

What is prog stock? Progenity (NASDAQ: PROG), a biotechnology company with headquarters in California, offers upside potential at a competitive price for investors who wish to take a chance. The fact that PROG stock is inexpensive and has a chance to double or more is undoubtedly appealing.

As for the business, Progenity focuses on treating disorders with significant unmet needs, such as those affecting gastrointestinal health, while also improving the field of oral drug administration.

The year 2021 wasn’t easy for Progenity’s investors, to be completely honest. The only constant factor among the high share price peaks and sharp drawdowns was volatility.

Although that volatility might work in your favor because PROG stock can move quickly for traders with good timing. Additionally, Progenity recently implemented modifications to its firm that could offer devoted stockholders a significant return on investment.

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PROG Stock at a Glance

In June 2020, Progenity set a price of $15 per share for its initial public offering (IPO). Unfortunately, on the first day of open trading, Progenity’s shares lost 12.5% of their value.

The PROG stock fell during the next 18 months, but there were significant rallies along the way. In reality, there were three run-ups of 50% or more in 2021.

The Progenity share price was a little under $2 at the end of December. Realistic traders today shouldn’t anticipate that the stock will surge back to its IPO price tomorrow or next week.

A better approach could be to buy more shares when they are discounted, as they were in the final trading hours of 2021.

However, it is not advised to “load the boat” with PROG stock. Low-cost healthcare stocks carry risk, therefore exercising prudence is always advisable.

Smaller Can Be Better

Can a business genuinely do better by streamlining its operations? Progenity is demonstrably demonstrating that it is feasible.

Progenity’s top priority for 2021 was unquestionably strengthening its capital position. This is demonstrated by the fact that the company recorded around $44 million in warrant exercises during the fourth quarter of 2021 (as of Nov. 23).

Additionally, Progenity lowered the principal amount of its convertible senior notes due 2025 held by non-affiliates by 38% in an exchange transaction in Q4 2021.

Eric d’Esparbes, CFO of Progenity, noted the significant progress his firm has made in enhancing its liquidity position and streamlining its capital structure. The outcome is that, according to d’Esparbes, Progenity’s liquidity situation will give it an “adequate runway to sustain the achievement of our major R&D goals for at least the next twelve months.”

Progenity’s recent sale of its affiliate, Avero Diagnostics, helped the company’s balance sheet even further.

In actuality, d’Esparbes claimed that the sale of Avero led to an additional $28 million yearly operating expense decrease. That would therefore increase Progenity’s overall yearly operating expense decreased to about $145 million compared to the second quarter of 2021.

Another Patent for the Portfolio

Progenity continues to announce new patents even as it streamlines its operations and lowers its costs.

Progenity’s patent portfolio had 96 patent families in it not too long ago. These included more than 220 pending applications and 180 granted patents.

We can now increase the total of patents by one more. This one concerns the upcoming single-molecule detection platform from Progenity.

“Methods, Systems, and Compositions for Counting Nucleic Acid Molecules” is the exact title of the U.S. patent. It includes techniques for grabbing, boosting, and imaging single copies of target nucleic acid molecules.

The latest patent, according to Matthew Cooper, General Manager of Diagnostics, “covers important methods for counting target molecules, obviating the necessity for sequencing.”

But this patent isn’t just another one. Actually, it’s a sign that Progenity is moving on a new path. Cooper explained, “We are actively seeking partners to further develop this promising asset as Progenity migrates away from the commercial diagnostics sector.

The Takeaway

Progenity isn’t merely patent-rich, as we’ve found. The business has a lot of capital.

At the very least, it has stronger financial standing now that Progenity has sold Avero Diagnostics. Furthermore, with its most recent patent addition, Progenity appears to be moving on a new path.

Overall, the promise of this leaner, better-funded company should be recognized by Progenity’s stakeholders. Ideally, 2022 will provide a new beginning and perhaps better price levels for PROG shares.

At the time this article was published, neither Louis Navellier nor the InvestorPlace Research Staff member who was primarily in charge of it owned any holdings in the securities it discussed (directly or indirectly).

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