Vermillion, Inc. (NASDAQ:VRML)
Vermillion, Inc. (NASDAQ:VRML) stock is up over 33% in early afternoon trading after the company’s subsidiary announced that it expanded positive policy coverage with the addition of 14 key managed care providers. VRML stock opened at $1.51, also today’s low, and shot up to hit an inter-day high of $1.97. VRML shares are trading around $1.88 at the time of this writing (12:38 PM EST).
Austin, TX-based Vermillion, Inc. (NASDAQ:VRML) discovers, develops, and commercializes diagnostic and bio-analytical solutions that aid physicians to diagnose, treat, and improve gynecologic health. Vermillion, along with its scientific collaborators, discovers, develops, and delivers innovative diagnostic and technology tools that help women with serious diseases. One of the company’s subsidiaries is ASPiRA Labs – the exclusive distributor of OVA1 (Multivariate Index Assay) (MIA).
Vermillion Subsidiary Coverage Details
ASPiRA Labs established positive coverage policies specify that OVA1 is medically necessary for the below plans:
- BlueCross BlueShield (BCBS) plans associated with a national plan, Health Care Service Corporation (HCSC) that include Illinois, Montana, New Mexico, Oklahoma and Texas (approximately 14.8 million covered lives)
- Horizon BCBS plans in New Jersey (approximately 3.7 million covered lives)
- Highmark BCBS plans that include Pennsylvania, West Virginia and Delaware (approximately 3.2 million covered lives)
- Wellcare: Government sponsored managed care across the U.S. (approximately 2.9 million covered lives)
Fred Ferrara, Chief Operating Officer of Vermillion, Inc. (NASDAQ:VRML) stated “Two policies totaling approximately 3.8 million covered lives are effective as of October 1, 2017, with the remainder being effective January 2018. This positive policy coverage is the first step to in-network contracts and market adoption. We are finishing this year strong with managed care rapidly increasing support of OVA1 to over 123 million lives, as of January 2018. OVA1 provides the only pelvic mass risk assessment product proven to get patients to the highest standard of care for ovarian cancer treatment.”
VRML Stock Performance
VRML stock is currently trading above the analysts’ consensus price target of $1.75. Its 52-week low is $0.76 and its 52-week high is $2.85.
Earnings losses have been contracting over the past three years. In 2014 the per share loss was (-$0.53), followed in 2015 by a loss of (-$0.41), and a narrower loss for 2016 of (-$0.29).
Dilution remains a concern though. In 2012 there were 15.1 million shares outstanding. That number has increased every year and for 2016 the company reported 52.2 million shares were outstaning.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.