SeeThruEquity Issues Update on VolitionRX (VNRX) and Raises Price Target to $7.00

NEW YORK, NY / ACCESSWIRE / October 13, 2016 / SeeThruEquity, the leading independent equity research firm focused on smallcap and microcap public companies, today announced it has issued an update note on VolitionRX Ltd. (NYSE MKT: VNRX).

The report is available here: VNRX Initiation Report.

VolitionRX Ltd. (NYSE MKT: VNRX) is a life sciences company focused on developing blood-based tests for a broad range of cancers and other conditions. VNRX’s novel NuQ® family of blood-based diagnostics tests are based on the company’s proprietary Nucleosomics® technology platform, which identifies and measures nucleosomes in the bloodstream. In our view, the company is targeting a large potential market, which, if successful, has high impact potential in the cancer diagnostics market given its tests’ low-invasiveness, high accuracy (80%+ in a retrospective study in Denmark) and low cost.

Highlights from the update are as follows:

Significant progress since our initiation of research coverage

VNRX released positive data related to its NuQ Triage Colorectal Cancer Screening Test in September, which showed that the test was a simple, easy-to-use blood test which can be used to triage FIT-positive populations for colorectal cancer. The tests have the potential to meet a significant need, given the large patient population and the drawbacks of the current first line screening test in Europe, the faecal immunochemical test (FIT). Chief among FIT’s drawbacks is a high incidence of false positives, which result in unnecessary colonoscopies, causing a strain on health care systems in Europe both through costs and the risk / stress of unnecessary procedures. VNRX will now seek to commercialize its test in a single assay, for use in Europe as a second line test for patients who have already tested positive in the FIT test. The company expects this could reduce unnecessary colonoscopies by 25% while still maintaining the 97% detection accuracy of colorectal cancer. We expect commercial activities to commence in 2017.

Financing bolsters balance sheet

On October 5, 2016, VNRX announced a significant new capital raise, which should support the company’s ongoing clinical development efforts, as well as provide working capital for initial commercialization activities. Management announced that the company completed a raise of $11.25mn in gross proceeds, with the latest offering completed at $5.00 per share. Adjusting for the company’s cash balance at the end of 2Q16, VNRX has pro forma cash of approximately $25mn, before cash outflows during 3Q16. We now estimate that basic shares outstanding following the raise are approximately 25.8mn, with 30.4mn fully diluted shares.

Raising price target to $7.00

We see VNRX as targeting a large and potentially transformative market in healthcare / biopharmaceutical space with its proprietary Nucleosomics® platform. Our decision to increase the price target is supported by the looming catalyst of commercial activities, now expected in 2017E, and the de-risking of the company’s balance sheet following the October financing. If achieved, the price target of $7.00 represents upside potential of 40.0% from the recent price of $5.00.

Please review important disclosures at www.seethruequity.com.

About VolitionRX Ltd.

VolitionRX is a life sciences company focused on developing diagnostic tests for cancer and other conditions. The tests are based on the science of Nucleosomics®, which is the practice of identifying and measuring nucleosomes in the bloodstream or other bodily fluid – an indication that disease is present.

VolitionRX’s goal is to make the tests as common and simple to use, for both patients and doctors, as existing diabetic and cholesterol blood tests. VolitionRX’s research and development activities are currently centered in Belgium as the company focuses on bringing its diagnostic products to market first in Europe, then in the U.S. and ultimately, worldwide. VolitionRX.com

About SeeThruEquity

Since its founding in 2011, SeeThruEquity has been committed to its core mission: providing impactful, high quality research on underfollowed smallcap and microcap equities. SeeThruEquity has pioneered an innovative business model for equity research that is not paid for and is unbiased. SeeThruEquity is the host of acclaimed investor conferences that are the ultimate event for publicly traded companies with market capitalizations less than $1 billion.

SeeThruEquity is approved to contribute its research reports and estimates to Thomson One Analytics (First Call), the leading estimates platform on Wall Street, as well as Capital IQ and FactSet. SeeThruEquity maintains one of the industry’s most extensive databases of opt-in institutional and high net worth investors. The firm is headquartered in Midtown Manhattan in New York City.
For more information visit www.seethruequity.com.

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SOURCE: SeeThruEquity

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