November is shaping up to be one of the most successful months for iSpecimen Inc. (NASDAQ: ISPC) – an online marketplace for human biospecimens. As one of the earliest bio companies to join the fight against COVID-19, ISPC has a first mover advantage in the growing $3-$4 billion global biospecimen market. On November 22nd, the company announced its contract with the U.S government and private researchers to supply critical human biospecimens for advanced stage COVID-19 research. This news alone caused a 111% increase over less than an hour – driving ISPC stock to a new all-time-high. It closed at $8.80, an 81% increase from the previous day’s close.

Catalysts

As a company with worldwide coverage, ISPC quickly realized a gap between providers and researchers in the biospecimens market. This means that providers lose revenue and research opportunities while researchers’ work becomes limited due to market inefficiencies. To combat this and minimize losses, ISPC launched its iSpecimen marketplace which directly connects suppliers and customers, leaving ISPC to handle the procurement process. 

ISPC’s iSpecimen marketplace has accelerated scientific discovery by empowering researchers to instantly search for and gain access to patients, biospecimens, and data across a global network of healthcare providers. Clearly, this service is not only extremely timely, but is also one feature that differentiates ISPC from its competitors – offering it the opportunity to capitalize on increasing demand for rapid testing services. Some investors have compared ISPC’s marketplace model to Amazon which undercut competition with quality service and rapid delivery. If ISPC stays its current course, bullish investors think it could even become the ‘Amazon of the healthcare market’.

Already, the company has expanded its network to over 700 suppliers and 3500 researchers. Today, 70% of the top 20 pharma companies and 70% of the top 20 IVD companies worldwide are iSpecimen customers. ISPC is already a trusted provider for numerous research organizations including the CDC, and its user base is only expected to grow following the company’s agreement with the US government . 

While the announcement may have come as a surprise to many, the company’s government contract is hardly its first. In fact, ISPC prides itself on its contracts with private companies and federal agencies, most of which deal with the custom collection of complex COVID-19 samples. This month, iSpecimen supplied hundreds of human biospecimen samples for an ongoing study conducted by the US military – showing ISPC’s potential for securing more contracts with other entities in the future. 

Due to these relationships and contracts, ISPC has a strong financial position according to its latest quarterly report. The company reported a 57% increase in revenue – leaving its nine-month revenue at $8.6 million and purchase orders at $12.8 million. As demand for human biospecimens grows with advancements in technology, ISPC’s strategic position in the market could lead to greater and greater revenue growth.

To facilitate this long-term vision, ISPC has become adept at forming partnerships which will accelerate its growth and efficiency. With this in mind, the company has enlisted a yet to be disclosed partner to help researchers collect genetically sequenced biofluid samples for studying the SARS-CoV-2 variant. ISPC’s pivotal role in the study of Covid-19 gave it a boost throughout 2020, but with new surges in Europe and a national lockdown declared in Austria it appears its services are still in great demand as countries guard against future outbreaks.  

In light of everything ISPC has going for it, the company appears positioned for further growth as the market research firm – Frost & Sullivan – reported,  “Utilization of sample data for research and for monetization is the next key value driver for the biobanks.” 

This has pushed ISPC to generate immense value for its users, increasing sales and driving long-term growth through its use of sample data and research. For now, iSpecimen plans to broaden its services on the iSpecimen marketplace while seeking out potential investments that could enhance its technology – an investment that could make it a major player going forward. 

Media Sentiment

Looks like @Jcazz17 and other investors are looking at PT above $20 which means today could be major for ISPC stock.

Technical Analysis

ISPC stock chart

Currently, ISPC is trading at $17.07 pre-market after hitting a new high at $21.06. Following its major run, ISPC has a support near 11.58 and a second support at 9.48. The stock is likely to dip at market open before retesting its resistance. On the hour chart, ISPC stock is significantly overbought with an RSI of 82 and accumulation is spiking back up. The MACD had a bullish crossover and continues to climb on the upside.

Should you buy?

Over the last year, ISPC has partnered with the military, federal government, and various healthcare organizations on a variety of projects. These projects prove ISPC’s important role as researchers and institutions come to rely on its iSpecimen Marketplace to supply their research needs.

Investors appear particularly bullish on the company’s marketplace comparing it to Amazon due to its coverage and fast delivery. This could make ISPC a good long term hold for bullish investors as Covid resurges, but in the short term ISPC could be a volatile short term play given its low float of 200 million. The announcement has fueled a massive run up for ISPC stock and after hitting $21.06 pre-market some are hoping it will retest its resistance after the dip. But as with every run, its important to take profits on the way up.

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