Genetic Technologies Limited (ASX: GTG) ("GTL") has seen its share price soar another 30% today, after its ADR shares on NASDAQ surged 8% earlier this week and 36% overnight.
ADRs or American Depositary Receipts are a security that trade on US exchanges and represent shares traded on other stock exchanges. In Genetic Technologies' case, 1 ADR is the equivalent of 150 GTL shares traded on the ASX.
Genetic Technologies specialises in providing genetic tests, including those addressing various aspects of cancer development, progression and management. In October 2014, the company announced the US launch of BREVAGenplus, an easy-to-use test for breast cancer.
In a statement to the ASX, after receiving a speeding ticket yesterday, Genetic Technologies pointed to its recent announcement that up to 6 new breast diagnosis / treatment centres are expected to be offering BREVAGenplus to their at-risk patients in January to March 2015. But, the company says this will only impact on sales results in the second half of this calendar year.
In the past month, shares in GTL have climbed 240%, including rising 100% following the announcement mentioned above. More centres are expected to follow later this year, and as a result Genetic Technologies says it "expects sales growth to accelerate in the second half of this year and beyond".
The company recently changed its strategy to focus on large comprehensive breast treatment and imaging centres, which have a longer sales cycle, but higher potential.
Genetic Technologies is still looking to raise capital to fund the development of BREVAGenplus, which could see shares issued at a substantial discount to the current price.
While still speculative, Foolish investors may want to keep their eye on Genetic Technologies, given not only the prevalence of breast cancer, but also the recommended medical testing to identify the cancers before they become a major problem.
