New Leadership Positions Prompt Rally in ROSG
Shares of Rosetta Genomics (NASDAQ:ROSG) climbed 13% Thursday morning after the company announced the hiring of a Chief Medical Officer and Chief Scientific Officer, both newly-created positions. ROSG has been on the decline since mid-September, and we don’t expect Thursday’s rally to catalyze or sustain any long-term gains. The company has been struggling with the commercialization of its line of MiRview oncology assays, but may have recently made strides through a co-promotion agreement with Precision Therapeutics and the ramping up of commercial operations. Short-term, however, ROSG is unlikely to maintain any highs from Thursday’s rally. Even after announcing the domestic launch of the miRview Mets2 assay, the company’s flagship product, on October 2, ROSG experienced only a momentary pop before returning to its downward trend. Long-term success will rely on adoption trends for the company’s diagnostics, which remain to be seen. The company’s next financial report should be revealing of miRview’s sales growth and the company’s efforts to improve commercialization.