Why This Nano-Cap Healthcare Stock Spiked Over 80% After-Hours Today

Shares of Biodesix, Inc. BDSX, a lung disease-focused diagnostics company, skyrocketed in after-hours trading on Monday.

What Happened: Biodesix's rally was in response to a series of filings by the company disclosing stock purchases by its chairman and a couple of its directors.

John Patience, serving as the director of the board, bought 279,329 shares in the company at $1.79 per share, while Matthew Strobeck and Jack Schuler, both serving as directors, picked up 558,659 and 2.79 million shares, respectively. The per-share pricing of the transactions was above the high-end of Monday's trading range.

Following the recent transactions, Schuler's stake in Biodesix is at 11.268 million or 29.3%.

An announcement from Biodesix ahead of the market open regarding the private placement of 6.51 million shares to raise $11.7 million in net proceeds and an amendment to its term loan agreement to relax the covenant terms sent the stock down by over 5% in regular trading on Monday.

This private placement included the shares bought by the three company insiders.

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Why It's Important: Biodesix went public in October 2020. After closing the debut session at $12.81 and seeing some upward bounce until late January 2021, the stock has been tracing a broader downward trajectory.

The latest financial results reported in mid-March showed a 73% plunge in revenue, as COVID-19 diagnostics revenue tapered off from $21.43 million a year ago to merely $425,000. The company's cash balance nearly halved to $32.71 million.

The fund infusion, apart from the psychological effect of lifting the stock price, is important for Biodesix to survive as a going concern until lung diagnostics revenues can grow strongly.

Author's Take: The fund infusion, apart from the psychological effect of lifting the stock price, is important for Biodesix to survive as a going concern until lung diagnostics revenues can grow strongly.

Price Action: Biodesix shares jumped 81.13% to $2.88 in Monday's after-hours trading.

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