VolitionRx's market in cancer detection expanding sharply with its Nu.Q product, says Maxim

VolitionRx Ltd (NYSE:VNRX) will get a strong boost because its assay kit used to screen for colorectal cancer will probably see its market expand significantly and the test could be extended to include inflammatory and infectious diseases along with trauma, according to Maxim Group analyst Jason McCarthy.

Shares of VolitionRx recently traded around US$1.75 Wednesday afternoon and McCarthy reiterated a Buy rating and price target of US$6, more than triple its current value. The company markets easy-to-use Nu.Q blood-based tests to accurately diagnose colorectal cancer as well as a broad range of other cancers.

The market for the total NU.Q Assay kits being sold by VolitionRx for colorectal cancer detection may see its market go up after the American Cancer Society (ACS) issued guidelines to lower the age for screening because younger people are at greater risk of the disease.

READ: VolitionRx releases disease detection research kit to expand global product range

“Lowering the age for colorectal cancer screening substantially increases the market size for VolitionRx in the US,” McCarthy wrote in a note to clients. “We view this as a positive for the company as the kits should help build awareness around Nu.Q platform.”

The analyst added that changes by the ACS and shifting trends in colorectal cancer data may prompt “other agencies around the world could potentially change their guidelines as well, increasing the opportunity for VolitionRx, in our view.”

The kit is the first of a planned series of kits being rolled out in the coming months. The Nu.Q holds promise and is being evaluated in Asia, the European Union and the US. The first data readouts and commercial launches are expected this year and into 2020.

–Recasts headline–

Story by ProactiveInvestors