Harriet Lefton

About the Author Harriet Lefton

Harriet originates from the UK where she worked as a journalist specializing in the metal markets. She graduated from the University of Cambridge before becoming a qualified UK lawyer.

Thursday’s Market Insights: Medical Transcription Billing Corp (MTBC) Explodes, Synchronoss Technologies, Inc. (SNCR) Collapses, Chromadex Corp (CDXC) Soars


Medical Transcription Billing Corp (NASDAQ:MTBC) shares are exploding by 61% today, which comes on the heels of a whopping 179% rise in the previous trading session. Following these dramatic gains, MTBC is now trading at closer to $1.67 up from $0.44 on Wednesday’s open.

In a record day of new signings, the healthcare IT company announced that it had added two clients who are expected to generate more than $1 million in combined revenue, starting in the third quarter of 2017. According to MTBC, this is an annual revenue that should be recurring. “We’re very pleased to welcome these new clients, who are regional leaders in their respective specialties of pain management and orthopedics,” said Karl Johnson SVP of MTBC.

The news comes just one day after MTBC revealed that it has formed a new partnership with Health Compliance Network, a leading provider of compliance solutions to hospitals and medical groups in the US. The two companies will synergize well says Health Compliance. MTBC aims to help US healthcare providers streamline workflows and make better decisions, while reducing administrative burdens and operating costs via its Software-as-a-Service (SaaS) platform.

Synchronoss Technologies, Inc. (NASDAQ:SNCR) shares have plunged by close to 48% in today’s trading session on a triple whammy of bad news. First of all, SNCR issued a first-quarter revenue warning.  The company disclosed that it “expects total revenue for the first quarter of 2017 to be $13 million to $14 million less than the company’s previously announced guidance” and “[o]perating margins are expected to be 8% to 10%, which are less than previously announced guidance.”

In addition, the mobile solutions company subsequently announced that the CEO and CFO are leaving to “pursue other interests” Synchronoss CEO Ronald Hovsepian will be replaced by the company’s founder and chairman Stephen Waldis while CFO John Frederick will be replaced by Lawrence Irving. Both Waldis and Irving have previously served in these roles according to the company, which said that the changes will be effective immediately.

In reaction, several investor rights law firms announced that they are investigating potential securities claims on behalf of shareholders of SNCR due to allegations that materially misleading business information was issued to the investing public. The law firms have invited shareholders of the company from before 26 April to join the class action against SNCR.

Chromadex Corp (NASDAQ:CDXC) shares are up by 17% today, after the natural products company announced an investment from Hong Kong business leader Mr. Li Ka-shing who is particularly interested in the company’s anti-aging products Niagen and Nad. Mr Li has entered into a securities purchase agreement for the sale of up to $25 million of CDXC’s common stock in a private placement.

Niagen is a form of vitamin B3 that acts as a booster of NAD+, which CDXC says is vital for proper cellular and energy metabolism. According to Chromadex, NAD+ enables the mitochondria – the ‘powerhouses of the cell’ to convert the food we eat into the energy our body needs. Six patents have already been issued and more are pending while the FDA has approved Niagen as an NDI- in other words, an ingredient for dietary supplements.

Tony Lau of Horizons Ventures said, “We see the category of healthy aging as an emerging, high-growth opportunity. We look forward to supporting ChromaDex in developing products in the healthy aging market and expand the market overseas.”

 

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