Monday, after the market close, shares of IceCure Medical ICCM surged by as much as 1,000% before pulling back. The Israel-based medical device maker aims to provide patients with treatment for cancerous tumors, and it looks like they are doing just that. Late Monday, the company announced successful studies pertaining to its kidney tumor treatment at a Urological Association conference in Israel. The stock is up more than 650% at the time of this writing.
What is Prosense? IceCure’s Prosense is a minimally invasive medical device that seeks to destroy tumors by freezing them in a process called cryoablation.
Who does Prosense help? The technology is looking to treat patients with small renal masses who cannot be offered kidney-preserving surgery.
What were the results of the study? Prosense, which is already approved in the U.S., and many other countries, was proven safe and effective in a study with 115 patients.
Why is the data so important? In the past twenty years, kidney tumor incidences have been increasing in the United States and abroad. According to the American Cancer Society, each year, there are 79,000 new cases of kidney cancer which leads to 14,000 deaths, on average.
Why is the stock up so much? With this data release, IceCure proves that it can treat cancerous tumors safely and effectively. The jolt of positive news coupled with the fact that ICCM is a micro-cap sent shares flying violently higher. Before the price spike, ICCM had a market cap of just $35 million. Also, expectations have been low, likely catching the market off guard. ICCM debuted in late 2021 with a double-digit share price and has fallen as low as $0.75 today before ripping higher to over $6 in after-hours trading.
Image Source: Zacks Investment Research
Pictured: ICCM has been an underperformer, thus far. Today’s blockbuster news is likely to change that.
What now? Microcap biotech stocks tend to be very volatile in nature. While it can be easy to get caught up in the fear of missing out, it can be extremely perilous to trade this type of move with any meaningful position size. Though current investors were rewarded handsomely, it rarely pays to chase. Nevertheless, the news is a win for humanity, the healthcare sector, and the stock. Investors should now have the little-known name on their radar and wait for the stock to absorb the news over the coming weeks and months. As more analysts begin to cover the stock, consensus estimates, and liquidity should rise.
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