AnPac Bio-Medical Science Co., Ltd. (NASDAQ: ANPC) is one penny stock that has traders’ attention gripped after yesterday’s trade session. Pushing into the pre-market, traders saw a net rise of 14.8%, reaching a peak of $0.75 at a certain point. This comes amidst a general bearish movement persisting from a month ago, losing 26.5% in value throughout this timeframe. In fact, this downward slide has persisted throughout the last twelve months and beyond. As of yet, ANPC stock stands at a mere 8.4% of the value it held at this date in 2021. The broader trajectory of the ANPC stock is laden with brief peaks in its general downward movement. These temporary yet frequent growth spurts are hardly sustained, and thus shortly undergo downward swings.
Nature of the Biotech Industry
The Chinese bio-medical firm is no anomaly to the biotech sector, where risk is initially high during initial phases. The absence of profitability during this frame of pharmaceuticals further points towards this progression. It further suggests the persistent bearish movement since 2020, may not be a potential red flag.
AnPac Global Leader in Multicancer detection and Screening
In fact, those familiar with the biotechnology realm are aware of the potential and promise AnPac likely holds. For instance, Frost & Sullivan ranked the firm as a global number one in the realm of multi-cancer detection and screening. The multinational US-based research firm arrived at this conclusion based on a number of parameters. Furthermore, AnPac, which holds a number of promising patents dating back to 2014, has achieved significant leaps in cancer treatment. Through its innovative technologies developed, AnPac is capable of detecting up to 16 different types of cancers. Moreover, its publishing of 4 technical papers for ASCO further highlights its commitment towards its vision towards cancer treatment.
Independent Valuation Points to ANPC’s Undervaluation
Another significant update that could potentially explain the sudden rise against bearish movement relates to a recent appraisal conducted. AnPac’s fully owned subsidiary, Changwei System Technology Co., Ltd had undergone an independent valuation last week. The value of the company was deemed as being approximately $90 million, suggesting its share price was heavily undervalued. The appraisal was invited after the board’s decision for the subsidiary to explore alternative strategic avenues, aimed at maximizing shareholder value. The firm’s integrated circuit chips, if properly implemented could bring a breakthrough within the medical domain.
Conclusion
AnPac stock has been on a persistent downward trajectory, given the nature of the biotechnological industry. However, experts in the domain point towards the innovative capabilities and potential of the company. The recent independent valuation of its fully owned subsidiary, Changwei System points to a significant undervaluation. This opens the door for alternative strategic avenues and potential shareholder value maximization.
