BGLC Stock Tumbled Over 13% Today: Why Is VitaGuard Commercialization Agreement Drawing Investor Attention?

BioNexus Gene Lab Corp. (BGLC) announced on Wednesday that it has entered into definitive agreements with Asia-based firms Fidelion Diagnostics Pte. and Tongshu Biotechnology, among other parties, to commercialize VitaGuard in Southeast Asia.

VitaGuard is a high-fidelity, tumor-naïve liquid biopsy platform for minimal residual disease, meaning it detects tiny fragments of tumor DNA without requiring a tumor tissue sample. Minimal residual disease (MRD) is a small number of cancer cells that remain in the body during or after treatment, which are undetectable by standard methods.

Transaction Terms And Details

China-headquartered Tongshu Gene is the original developer of the VitaGuard technology. The firm serves as the research and development, as well as manufacturing partner of Singapore-based Fidelion.

The partnership aims to support the planned commercialization of MRD testing in Southeast Asia with an initial focus in Singapore and Malaysia.

Under the agreement, BGLC will receive new Fidelion shares equal to at least 15 % of Fidelion’s fully diluted share capital, and Fidelion will receive newly issued, restricted BGLC shares equal to 19.9% of BGLC’s pre-money outstanding shares. The BGLC share issuance will be made in a private transaction, the company said.

The completion of the transaction is conditioned upon an Intellectual Property License Agreement granting BGLC exclusive commercialization rights across the Association of Southeast Asian Nations.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around BGLC stock jumped from ‘neutral’ to ‘extremely bullish’ territory over the past 24 hours, while message volume increased from ‘extremely low’ to ‘extremely high’ levels.

BGLC stock is up 68% this year and approximately 42% over the past 12 months. 

Also See: Toyota Commits Up To $10B Additional Investments In US Over Five Years

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