At time of writing, the share price of LBT Innovations Limited [ASX:LBT] is up a massive 157.14%, trading at 18 cents.
The stock was in a downward trend for the year before today’s announcement:
The latest news out of the company is that it has received FDA clearance for its APAS® Independence instrument, which uses Artificial Intelligence (AI).
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LBT Innovations share price reacts to announcement
The announcement was released yesterday after the ASX closed, with the pent-up interest resulting in huge gains for the LBT share price today after it came out of a trading halt.
The FDA clearance for its APAS® Independence instrument now lets it market the product in the lucrative US market.
The device is, ‘a fully automated instrument with the ability to process over 200 culture plates per hour, which is at least three times faster than manual culture plate reading. The instrument is able to differentiate culture plates showing bacterial growth from those that are not, without the need for highly skilled microbiologist assistance.’
The focus for LBT Innovations is now on commercialisation and the company claims that it has made contact with 800 laboratory stakeholders in the US.
Crucially, as the company notes, it ‘is not aware of any other competing products cleared by the FDA for similar applications…[and] the only commercially available instrument for the automatic reading of culture plates in the United States.’
Prospects for LBT Innovations going forward
LBT Innovations believes their global addressable market is 12,000 labs globally.
If this is the case, a 20% penetration of four targeted countries would bring in cumulative instrument sales of $160 million.
This is what the instrument looks like by the way:
So if you take them at their word, their current market cap of around $14 million looks cheap.
Pullbacks could occur as investors cash in, but the overall outlook looks positive following this FDA clearance.
It is possible a further share price rise could be in the offing.
For Money Morning