Great Basin Scientific Inc (NASDAQ:GBSN) shareholders have reason to be excited with the recent developments from the FDA clearance and the surging stock price. The stock advanced more than 80% during intraday trading and volume has hit an all-time high with over 76 million shares trading hands with several hours left in the trading day. GBSN climbed to $0.26 up over $0.11.
In recent developments, Great Basin Scientific Inc (NASDAQ:GBSN)announced that it had received FDA 510(k) clearance for Shiga Toxin direct test. Company continues to expand menu, adding the only stand-alone molecular test for Shiga toxin-producing E. coli (STEC) detection cleared by FDA. Great Basin’s Shiga Toxin Direct Test enables a streamlined workflow for laboratory technicians, offering sample-to-result testing with less than one minute of hands-on time, and without a specimen enrichment step. Quickly detecting stx1 and stx2 genes provides information clinicians need to make appropriate and timely therapeutic decisions to improve patient outcomes and the potential for lower overall cost of care.
Great Basin Scientific Inc (NASDAQ:GBSN) recently released its full year 2015 and fourth quarter 2015 results which showed comparable improvements for prior reporting periods. Revenue for the 4th quarter 2015 surged 37.4% to $0.6 million. For the full year 2015, revenues climbed 33.4% to $2.14 million. The company is showing positive trends and progress. Net operating loss has grown significantly; however, the FDAs clearance should increase revenues dramatically. 186 revenue-generating customers as of December 31, 2015, increasing to 201 as of January 31, 2016.
Mr. Ashton continued, “In 2016 we will be building on these fundamentals of growing our customer base and expanding our menu. We plan to begin clinical trials on four to five new products this year and expect three or four of them to complete trials and be submitted to the FDA for 510(k) clearance by the end of the year. We expect that our continually-expanding menu will drive ongoing demand for our easy-to-use and cost effective system – which delivers greater cost-benefits and value to labs with every added assay – and are confident we will continue to produce strong customer growth in 2016 and solid revenue growth in 2017 and beyond.”
Great Basin Scientific, Inc., a molecular diagnostic testing company, doing business as Great Basin Corporation, develops and commercializes molecular diagnostic systems that are designed to test hospital-acquired infections. The company’s platform provides C. diff test, a rapid medical diagnostic test for the detection of C. diff, a gram-positive bacteria that causes severe diarrhea and other intestinal disorders. It also provides Group B streptococcus test, which is used to detect Group B streptococcus from an anal/vaginal swab of a pregnant woman. The company’s assays in clinical trials include Staphylococcus identification and resistance blood infection panel that is designed to identify species of Staphylococcus infections, detect the mecA gene that confers drug resistance directly from positive blood cultures, and provide information on the antibiotic resistance profile of the bacteria; and Shiga toxin producing Escherichia coli (E. coli) test that identifies shiga toxin produced by E. coli.
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GBSN is currently trading at a $29 million market valuation. The company has grown its topline compare to last year but its bottom line and operating loss needs help. GBSN recent development with the FDA clearance is huge boost to the company and should provide additional revenues in the future and momentum for the stock.
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Disclosure: we hold no position in GBSN either long or short at the publication of this article and we have not been compensated for this article.