NEW YORK (TheStreet) -- Rosseta Genomics (ROSG) shares are up 7.41% to $4.06 on heavy volume Friday as the biopharmaceutical company continues to gain after receiving a key U.S. patent for its cancer origin diagnostic test yesterday, announcing the completion of its acquisition of oncology testing service provider PersonalizeDx from Abbot Laboratories (ABT) - Get Report on Tuesday and being upgraded by analysts at Cantor Fitzgerald before the opening bell today.
Analysts at the firm upgraded the company's outlook to "buy" from "hold" while raising its price target to $5.50 from $4, a potential 35.5% upside from the stock's current trading price.
"PDx not only provides immediate scale to ROSG's business, but brings strong top-line growth momentum (almost three-fold increase in 2014 revenue y/y, despite reimbursement challenges for FISH-based tests)," said analysts at the firm.
PersonalizeDx was able to generate about $6 million in revenue for Abbot Labs last year while primarily focusing on testing for breast, lung, bladder and prostate cancer. The newly combined companies plan to introduce five new proprietary tests in the coming year.