215 First Street
Cambridge, MA 02142
Index Membership: N/A
Full Time Employees: 52
A Breakthrough Small-Cap StockBy Paul Goodwin, Chief Analyst, Cabot China & Emerging Markets Report
From Cabot Wealth Advisory 4/15/15 Sign up for Cabot Wealth Advisory—it’s free!
Founded in 2011, OvaScience (OVAS) is a global life sciences company focused on discovering, developing and commercializing fertility treatments. The company is led by rising 30-something biotech star CEO Michelle Dipp, and is driven by fertility expert and Harvard Medical School researcher Jonathan Tilly, Ph.D, whose research was named one of the top 25 science stories of 2012 by Science News.
“In fact, it was Tilly’s research that led to OvaScience’s breakthrough infertility treatment. While working with mice, Tilly discovered oocyte-producing stem cells within their ovaries. Oocytes are essentially undeveloped eggs, and, with additional research, Tilly was able to use these stem cells and oocytes to produce new fertile eggs. The results sent ripples through the scientific community, shattering the long-held dogma that individuals are born with a fixed number of primary oocytes.
“In 2012, Tilly’s research team duplicated the procedure in humans, extracting oocyte stem cells (OSCs), or egg precursor cells, and creating immature eggs that could eventually be fertilized. Dubbing the precursor cells EggPCs, OvaScience patented this procedure and launched its flagship next-generation IVF treatment called Augment. Since developing Augment, OvaScience has developed two additional IVF procedures, OvaPrime and OvaTure, and has a third under development with a third-party, OvaXon. …
“Historical Price: OVAS shares took a roundabout path to reach the public, starting out on the Over The Counter Bulletin Board (OTCBB) in November 2012 before reaching the Nasdaq in April 2013. And shares have had a rocky relationship with investors during these past two years. In 2013, OVAS was capped by firm resistance at 10, with shares bouncing in a tight range along support at 8. After a false start in January, OVAS broke out above 10 in February, peaking just shy of 12. However, regulatory concerns forced OVAS down to an all-time low of 5.50 by mid-May.
“Following a brief basing period near 7, OVAS has been in rally mode. The stock broke above 10 in early August, and hasn’t looked back since. In fact, since the beginning of August, OVAS has soared more than 65%, gaining the support of its 10-day and 25-day moving averages in the process.Currently, OVAS is digesting these rapid gains, and appears to be forming a base just north of 15. As shares stabilize, any dips could be seen as buying opportunities.