VolitionRX stock holds as Benchmark maintains rating

On Tuesday, Benchmark analysts maintained their Hold rating on VolitionRX (NYSE:VNRX) shares, as the company faces financial challenges with an InvestingPro overall health score of 1.72 (Weak). The firm's latest comments highlighted VolitionRX's strategy to capitalize on its nucleosomic testing technology throughout 2025. The company's plan includes securing a licensing agreement with a major in vitro diagnostics firm, expanding its veterinary testing offerings, and selling its CE-Mark IVD and IVD-D test kits, which have already been purchased by three hospitals.

VolitionRX has set its sights on a productive year, having already secured $1.8 million in grant funding during the first quarter of 2025, with the potential to receive an additional $4-5 million over the year. The company showed promising revenue growth of 59.1% over the last twelve months, though its current ratio of 0.52 indicates potential liquidity challenges. The anticipated licensing deal is considered a pivotal move for VolitionRX, with the potential to exercise warrants valued at approximately $7 million.

The company's efforts are not solely focused on business development but also on enhancing its clinical data for various applications. VolitionRX is expected to provide additional clinical data on lung cancer testing, sepsis, and multi-cancer detection, which will support its monetization strategies.

Benchmark analysts have updated their financial models to reflect these developments but have chosen to maintain the Hold rating on VolitionRX shares, as the stock has declined 31.5% over the past year. They consider the successful completion of the licensing deal as a significant event that could provide revenue beyond their current estimates. For deeper insights into VNRX's valuation and growth prospects, access the comprehensive Pro Research Report available on InvestingPro, which includes additional expert analysis and key metrics.

In other recent news, VolitionRx Limited reported a significant increase in revenue for Q4 2024, surpassing forecasts with a total revenue of 1.2 million USD, marking a 59% rise from the previous year. The growth was primarily driven by the Nu.Q Vet cancer test sales, which saw a 75% increase, reaching 800,000 USD. Despite the strong revenue performance, the company continues to face financial challenges, as indicated by the limited cash reserves of 3.3 million USD at year-end. Additionally, VolitionRx has filed a new registration statement with the SEC to manage its share registration more effectively, involving no new shares but re-registering those previously filed.

In terms of strategic developments, VolitionRx aims to achieve cash neutrality in 2025, focusing on expanding its Nu.Q platform for oncology and sepsis. The company is also working on securing human licensing deals and expanding clinical studies. Recently, VolitionRx has been in discussions with several large diagnostic and liquid biopsy companies to sign licensing agreements, highlighting the strong interest in their technology. Furthermore, the company has been actively engaging with pharmaceutical companies through its Nu.Q Discover platform, which is expected to generate significant revenue in the coming years.

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