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Shares in OpGen (NASDAQ:), the precision-medicine firm, surged sixfold in premarket trading on Thursday, following the announcement of strategic transaction talks with an undisclosed investor. The company has entered into a private placement agreement as part of these discussions, selling $1 million in preferred stock to the investor.
In a separate move aimed at bolstering its financial position, OpGen’s Curetis unit has sold Unyvero A50 systems to another undisclosed strategic partner. This sale secured an advance payment of nearly $800,000 for the company.
These financial maneuvers come at a crucial time for OpGen. The company has previously issued warnings about its dwindling cash reserves and raised doubts over its operational sustainability. By entering into these strategic transactions and securing significant advance payments, OpGen is taking the necessary steps to ensure its survival in the competitive precision-medicine sector.
Yet, the company’s financial health remains a concern. According to InvestingPro’s real-time metrics, OpGen operates with a significant debt burden and is quickly burning through cash. The company’s market cap stands at 21.89M USD, and it recorded a revenue of 2.82M USD in LTM2023.Q2, marking a decline of 31.25%. Its gross profit margin stood at -285.24%, reflecting weak gross profit margins.
Furthermore, the company’s stock price has seen significant volatility. It has fallen significantly over the last five years, with a year-to-date price total return of -88.09%. However, it has shown a strong return over the last month, with a one-month price total return of 52.73%.
InvestingPro Tips suggests that the company’s short-term obligations exceed its liquid assets, and analysts do not anticipate the company will be profitable this year. Despite these challenges, OpGen’s stock price often moves in the opposite direction of the market, which could present unique investment opportunities.
For more detailed insights and tips on OpGen and other companies, consider subscribing to InvestingPro. The platform offers 21 additional tips for OpGen, alongside real-time metrics and analysis for a wide range of companies.
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