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Watch Out for One NASDAQ- Listed Medical Equipment Stock – Predictive Oncology Inc

Jun 25, 2024 | Team Kalkine
Watch Out for One NASDAQ- Listed Medical Equipment Stock – Predictive Oncology Inc

POAI:NASDAQ
Investment Type
Small-Cap
Risk Level
Action
Rec. Price (US$)

Predictive Oncology Inc

Predictive Oncology Inc. (NASAQ: POAI) is a knowledge-driven company focused on applying artificial intelligence (AI) to support the development of cancer therapies. The Company operates through three segments: Pittsburgh, Birmingham, and Eagan.

Recent Business and Financial Updates

  • Advancement in AI-Driven Cancer Prognosis: Predictive Oncology has successfully demonstrated the effectiveness of its AI-driven multi-omic machine learning models in significantly improving the prediction of survival outcomes among ovarian cancer patients compared to conventional clinical data. Conducted in collaboration with UPMC Magee-Womens Hospital and presented at the 2024 ASCO Annual Meeting, the study highlights the potential of these models to enhance clinical management and personalize treatment plans for patients with high grade serous ovarian cancer. This achievement underscores Predictive Oncology's leadership in utilizing AI and machine learning to advance oncology drug discovery and improve patient outcomes through tailored therapeutic strategies and biomarker exploration.
  • Innovative GPCR Expression Platform Unveiled by Predictive Oncology: Predictive Oncology Inc. (NASDAQ: POAI) has introduced a new technology aimed at expressing functional and stable G-Protein Coupled Receptors (GPCRs) crucial for drug development. With GPCRs playing a pivotal role in cancer processes, the company's novel platform is poised to significantly impact drug discovery efforts targeting these receptors, valued at over $3.5 billion annually in the U.S. alone. Dr. Larry DeLucas, SVP of Biologics, highlighted the filing of expansive intellectual property protection for this technology, emphasizing its potential to foster collaborations and enhance therapeutic portfolios in oncology and beyond.
  • Advancing Drug Discovery with Organ-Specific 3D Cell Models: Predictive Oncology Inc. (NASDAQ: POAI) has unveiled its innovative organ-specific 3D cell culture models aimed at enhancing cancer drug discovery and development. These models, designed to closely mimic human tissue architecture, offer a more representative approach for in vitro drug testing compared to traditional 2D assays. Raymond Vennare, CEO of Predictive Oncology, emphasized the models' ability to accelerate drug development timelines, reduce costs, and minimize reliance on animal testing, aligning with industry trends projecting the 3D cell culture market to grow to nearly $5.3 billion annually by 2032.
  • Q1 2024 Financial Performance and Strategic Highlights: Predictive Oncology (Nasdaq: POAI) reported a net loss of approximately USD 4.2 million for the first quarter of 2024, alongside total revenue amounting to approximately USD 0.4 million. This period marked significant advancements for the company, highlighted by key initiatives and partnerships.
  • Recent Milestones: An abstract detailing a collaborative study with UPMC Magee-Womens Hospital was accepted for presentation at the ASCO Annual Meeting. This study leveraged multi-omic machine learning models to enhance survival predictions for high-grade serous ovarian cancer patients. Predictive Oncology entered a collaboration with Fujifilm aimed at improving bacterial endotoxin testing in biopharmaceutical products using its proprietary EndoPrep™ technology. Additionally, progress continued in the collaboration with FluGen to develop an intranasal flu vaccine, supported by a USD 6.2 million Phase 2b grant from the U.S. Department of Defense.
  • Financial Summary for Q1 2024: During Q1 2024, Predictive Oncology maintained a cash position of USD 5.2 million, down from USD 8.7 million as of December 31, 2023. Stockholders' equity stood at USD 4.1 million compared to USD 8.3 million at the end of the previous year. Basic and diluted net loss per common share for the quarter was USD (1.04), compared to USD (0.86) for Q1 2023.
  • Financial Results Overview: Revenue for Q1 2024 totaled USD 419,646, up from USD 239,895 in Q1 2023, driven primarily by activities in the Eagan operating segment. The gross profit margin improved to approximately 55% from 50% in the same period last year. General and administrative expenses increased to USD 2.6 million, reflecting higher professional fees, while operations expenses rose to USD 1.1 million due to expanded research and development efforts. Sales and marketing expenses also increased to USD 739,734, primarily due to costs associated with executive severance. Despite these financial dynamics, Predictive Oncology reported a net cash used in operating activities of USD 3.4 million for Q1 2024, compared to USD 3.4 million in Q1 2023, driven by changes in working capital.

Technical Observation (on the daily chart):

The Relative Strength Index (RSI) over a 14-day period stands at a value of 37.31, downward trending and currently recovering from oversold zone, with expectations of a consolidation. Additionally, the stock's current positioning is below both the 50-period SMA and 200-period EMA, which may serve as dynamic medium to long-term resistance levels.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Watch’ rating has been given to Predictive Oncology Inc. (NASAQ: POAI) at the current market price of USD 1.05 as of June 25, 2024, at 07:10 am PDT. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is June 25, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.


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