Needham has maintained a Buy rating on OncoCyte Corp (NASDAQ: NASDAQ:OCX) with a consistent price target of $4.25.
The firm highlighted OncoCyte's strategic pivot towards prioritizing its transplant diagnostic tests while still planning to advance its oncology tests in the future.
A partnership with Bio-Rad Laboratories (NYSE:BIO) has been established to market OncoCyte's GraftAssure and VitaGraft tests. Notably, Bio-Rad Laboratories has acquired approximately a 9% ownership stake in OncoCyte.
The company is looking to transform the transplant testing landscape by offering tests that can be administered and billed directly by transplant centers, as opposed to outsourcing to other companies like CareDx (NASDAQ:CDNA).
This approach could potentially disrupt the current market practices.
The analyst believes that the transplant rejection diagnostics market is not only substantial but also expanding rapidly. OncoCyte's GraftAssure, which is currently available for research use only (RUO), and VitaGraft, an in vitro diagnostic (IVD) clinical test, are both expected to secure a significant market share and drive robust growth for the company.
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