This was biomed's explanation re: why they didn't catch Vermillion:
No conversation about blood diagnostic stocks is complete without first discussing what many biotech investors call the "Vermillion Dollar baby." So before we talk about PWRM, let's put things into perspective and start there.
On September 16 2009, Vermillion, Inc. (OTC:VRMLQ), the anguished little company seeking Chapter 11 bankruptcy protection, received clearance for it's ovarian cancer diagnostic test from the US Food and Drug Administration. That morning, shares in the company went from pennies to a dollar on the news.
Calls and angry e-mails began flooding the offices of BioMedReports in Los Angeles. Subscriber after upset subscriber asking:
"Why wasn't VRMLQ on your FDA Calendar as one of the companies to invest in?" "How could you guys miss this?"
We had omitted the company because we would never knowingly advise anyone to invest in a company headed for bankruptcy and that's clearly what Vermillion was prior to that fateful morning. They had been struggling for three years to stay alive and the decision from the FDA was "a Hail Mary pass that brought Vermillion back into the game."
What happened next was even more surprising.
Even though the company still faces huge financial hurdles, it's low float and excitement about its OVA1 cancer diagnostic test sent shares from that single dollar to over $21 as of yesterday.
If you were one of the readers who complained that you missed that trade at $1, I can only imagine how you're feeling today.
The same fortune hunters who threw caution to the wind and gambled big on VRMLQ are now keeping their fingers crossed that Quest Diagnostics (NYSE:DGX) will dip into its war chest to buy Vermillion. After all, Vermillion is the same company Quest gave plentiful collaboration and boat loads of loan money to in order to keep the company afloat and focused on developing that OVA1 test- which Quests controls all rights to now, anyway.
That test is based on "biomarkers" and is the first FDA-cleared test that can indicate the likelihood of ovarian cancer with high sensitivity before a biopsy or exploratory surgery, but interestingly, the FDA has said the test is only intended for women ages 18 and older who are already selected for surgery and it is not intended for use as a screening device for ovarian cancer or as a definitive diagnosis for the disease. The potential patient population for that test according to most estimates and published reports, ranges between 1 million and 5 million patients annually.
That brings us to what could easily become the next "Vermillion Dollar Baby."
Our only hope those of you who complained that we missed VRMLQ are paying close attention now.
I think HDVY has the potential to run like Vermillion. They have similar share structures, HDVY's technology led to Vermillion's discovery, and HDVY is poised to release several cancer diagnostic tests.
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