You Could Double Your Money With This Future Medical Superstar

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TrovaGene isn’t just a pie-in-the-sky theory. In March, the company launched its urine-based human papillomavirus (HPV) test, which screens for 15 high-risk strains of the papilloma virus. It also expects the previously mentioned colon cancer technology, as well as a test for mutations, to be launched by the end of the year.

In other bullish news, TrovaGene entered into a material agreement with multibillion-dollar diagnostics technology leader PerkinElmer, Inc. (NYSE:PKI) to jointly develop a test to determine a person’s risk of developing hepatocellular carcinoma (HCC). The terms have not been disclosed, but PerkinElmer will make milestone payments to TrovaGene.

TrovaGene boasts a market cap of $125 million but has a tiny revenue stream of just under an average $90,000 per quarter. The vast majority of the revenue is from royalty agreements.

This company has substantial development costs, but I think it will soon turn the corner to profits. PerkinElmer may be the start of other large pharmaceuticals joining forces. In addition, the market for the diversified pending products is huge with TrovaGene, which is well positioned to capture it in stages as the tests are approved and launched.

In the technical picture, shares have dropped from a high of more than $10 to find support at the 200-day simple moving average. As the bullish catalysts start to happen, the price could easily bounce into the $15 range within the next 18 months. Buying now with stops just below $6 and a 12-month target of $10 and an 18-month target of $15 creates a strong risk-to-reward ratio for investors.

Risks to Consider: Despite the potential, investors need to be fully aware that this company is not yet profitable. Although it has enough cash to survive awhile, it has a high burn rate and risks the possibility of another company creating better products before TrovaGene can exploit the market. This type of investment can produce huge rewards, but it remains highly speculative at this time.

Action to Take –> I think right now is the perfect time to buy into this diagnostic company. The convergence of the pending diversified launches combined with the technical picture creates a bullish environment from the current level.

Technologies that make medical care less painful stand to make a fortune for their investors. If you think TrovaGene’s future sounds bright, click here to read about a little-known company that’s revolutionizing the operating room.

– David Goodboy

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