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Technology continues to expand and impress with the breadth of what it is capable of accomplishing. The very latest advances often have to do with DNA. In recent decades, humans have learned a great deal about DNA and what it means to us as a species. Needless to say, any time a company comes up with yet another step forward in DNA technology it is very exciting.

HTG Molecular Diagnostics (HTGM) has announced a breakthrough in direct target sequencing of DNA. What this means is that the company has more advanced technology which allows it to find and directly target DNA strands which may be abnormal compared to what is available out there. Put another way, the company looks for DNA sequences which may show certain diseases or other issues within a given person.

This matters because we all would like to know if there is something wrong with us before we start showing physical signs of it. For certain diseases, the code is written into the DNA. This means if it can be identified ahead of time, one may be able to take preventative measures to avoid the disease or at least lessen its impacts. As technology continues to advance it may even be possible to alter the DNA code and therefore prevent the disease in the first place.

The company now says that it will begin to use this technology on its first subject starting in March of this year. They are ready to hit the ground running with this project and hopefully bring about results that will be beneficial to the health of the patients that the company works with. The operation to examine the DNA is as non-invasive as the company can make it, and the results that it can potentially yield are well worth the exam.

HTGM Technicals

Looking at the daily chart above you will see that shares skyrocketed from Friday's close of $1.23 to Monday highs of $3.54, marking a 187% jump in value. Shares ran into some resistance at $3.50 where prices have been rejected before and the next big level after that is $4. We'll want to see price get back above $3.50 and hold to confirm the price action otherwise we could see this pullback to the 200-day moving average currently sitting at $2.35. 

If you're looking to trade this stock make sure to use proper risk management techniques as it will be more volatile than normal as traders look to take advantage of the movement.

Executive Comments

“We are very excited to be able to offer our customers this added service which, together with our prior service offerings, enables us to provide information on key DNA mutations as well as comprehensive gene expression RNA profiling, all from a single section of FFPE tissue,” said TJ Johnson, HTG’s Chief Executive Officer.  “We have completed our patent application filings and plan to leverage this new chemistry into multiple offerings, including DNA applications such as expanded DNA mutation panels, and detecting microsatellite instability and tumor mutational burden.”

“We are completing final preparations for launching the direct-target sequencing technology and an initial DNA mutation panel in our VERI/O laboratory, and plan to have this panel available to service customers for research uses by the end of this quarter,” added Byron Lawson, HTG’s Vice President of Commercial Operations.

Company Profile

HTG Molecular Diagnostics, Inc. provides molecular technology solutions. It offers products for miRNA, and mRNA measurement for translational research/medicine and molecular diagnostics. Its qNPA molecular technology platform detects changes in gene expression levels; especially from formalin-fixed, paraffin-embedded tissue and other biological sample types. It also offers pharma and diagnostics services. The company was founded by Bruce E. Seligmann in October 1997 and is headquartered in Tucson, AZ. -MarketWatch