Aptorum Group (NASDAQ:APM) is looking to make a name for itself on Tuesday as its shares rocket higher by more than 500%. Nano-cap APM stock may not be a well-known name, but the company has Wall Street very excited.
So what exactly is behind the rally? And what exactly is Aptorum Group? To start, the company says it focuses on life sciences innovations with unmet medical needs in mind. Some of its projects include a robotic catheter platform, a supplement for menopause symptoms and small molecule treatments for infectious diseases like the flu and staphylococcus.
Now, Aptorum Group is making a big move. The company announced Tuesday that it is launching Aptorum Innovations. This subsidiary will focus on liquid biopsy diagnostics — positioning Aptorum even more in the realm of infectious diseases. Not sure what that all means? Liquid biopsies are diagnostic tests focusing on non-solid biological tissue, such as blood.
Importantly, liquid biopsies represent advancements in medicine. They can also help speed up the diagnostic and treatment process, hopefully improving patient outcomes.
While news of its pivot is exciting enough, Aptorum Group had another announcement. The company just in-licensed the rights to develop molecular-based tests for different pathogens. It will work alongside Accelerate Technologies, the commercial arm of Singapore’s Agency for Science, Technology and Research.
But beyond giving investors a new business model to review, why does this really matter? And what is making APM stock so hot Tuesday morning?
APM Stock Soars on Infectious Disease Pivot
Clark Cheng, the chief medical officer and executive director of Aptorum, said it best.
“With the significant worldwide disruption caused by the COVID19 pandemic and the current global focus on antimicrobial resistance, further to our recent joining with the BEAM alliance 2, Aptorum Group expands its potential infectious disease liquid biopsy diagnostics capabilities in synergy with its current infectious disease platform…”
Did you notice that mention of the novel coronavirus? The pandemic has really brought infectious diseases to the mainstream. Now, everyday individuals are thinking about public health in new ways. Because of this, Wall Street has been bidding up companies looking to make a difference. Through its new subsidiary, Aptorum Group is committed to reducing hospitalizations from infectious diseases. Aptorum also noted in its press release that mortality associated with some of these diseases is as high as 25% — or even 80%.
The company believes that its infectious disease solutions and new rapid tests will help change that. As the wild ride in the market this morning shows, it is far from a safe bet, but it sure is an interesting one.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer for InvestorPlace.com.
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