Shares of molecular diagnostics company Trovagene TROV are soaring today following news that the company has reached an agreement with America’s Choice Provider Network (ACPN). Trovagene has gained over $2 or 60% during regular trading hours Thursday.
The new agreement means that the ACPN will cover Trovagene’s circulating tumor and DNA Precision Cancer and Monitoring (PCM) tests and services. According to the terms of the deal, PCM services will be covered by over 1,700 insurance providers in North America.
In a press release detailing the deal, ACPN chief operating officer Seth Breeden said, “We are very much looking forward to having a provider as progressive and innovative as Trovagene in our national provider network.”
Trovagene chief commercial officer Matt Posard added, “We are pleased that ACPN has agreed to provide coverage for Trovagene's PCM full offering of ctDNA product. Our commercial plan is on track to provide national sales coverage, and ACPN is the first of several additional contracts expected this year.”
The new deal is huge for Trovagene, as it opens the door for the company’s products to gain wider use. If Posard’s assertion that many more deals are on the way is true, investors might be in for even more gains from this stock.