Epigenetics co. VolitionRx climbs 10% on sepsis assay news, still offers 730% upside

Shares of VolitionRx, a micro cap developer of blood-drop tests for cancer and sepsis, jumped 9.5% yesterday, December 4. The company reported that France has selected its sepsis test for early disease detection in hospitals. Overall, Wall Street believes VolitionRx shares still have 730% upside.

VolitionRx shares rose 9.5% to $0.31 apiece yesterday on the New York Stock Exchange. The move followed the the inclusion of its Nu.Q NETs H3.1 assay in "DETECSEPS," described as a "real-world evaluation of early detection of sepsis." DETECSEPS was in turn awarded winner of a call for proposals made by the French Health Innovation Agency and operated by the Banque Publique d'Investissement, as part of the France 2030 plan. The EUR54 billion initiative is aimed at modernizing the economy and supporting innovation in priority sectors, including health care.

The consortium, with VolitionRx supplying the sepsis test, will receive about EUR6.3 million (approximately $7.3 million) in government funding.

VolitionRx was founded in 2010 by chemist Jake Micallef, biotech entrepreneur Mark Eccleston, and Cameron Reynolds. Their ambition was to shift cancer and sepsis diagnostics away from expensive and invasive procedures toward tests as simple as cholesterol or pregnancy checks. The company built Nu.Q around the idea of detecting nucleosomes released into the bloodstream as cells die. The approach is designed to allow rapid, inexpensive diagnosis and to help hospitals to monitor how diseases evolve.

The company now concentrates on two main areas: oncology and sepsis. DETECSEPS Coordinating Investigator Sébastien Beaune, as quoted by VolitionRx, said sepsis affected about 166 million people globally in 2021 and caused an estimated 21.4 million deaths. Among survivors, 33% die within a year, 40% are readmitted within 90 days, and 15% develop "significant morbidity such as functional limitations."

In late November, the company also announced the first commercial order for its cancer test, also in France. However, this did not arouse investors' enthusiasm: on the day of the announcement, November 25, shares fell 9%.

VolitionRx has four “buy” ratings versus two “hold” ratings, according to MarketWatch data. The average target price is $2.58 per share, or 8.3 times the closing price on December 4.

On that day, D. Boral Capital reiterated its “buy” rating with a $5 target price – its second reiteration since November 26, according to Yahoo Finance. This is the highest valuation on Wall Street and implies upside of roughly 16 times current quotes.

Freedom Capital on November 21 cut its target price for VolitionRx to $1 per share, down from its earlier estimate, while maintaining a “buy” rating, as described in a note seen by Oninvest. The company's revenue, though expanding, is still modest. Third-quarter revenue rose 32% year over year to $0.6 million. Freedom expects even more substantial growth by 2030.