American Bio Medica Corporation (OTCMKTS:ABMC) Continues to Hit New Highs on Covid-19 Buzz
The coronavirus pandemic has been one of the biggest healthcare crises to have hit the world, and companies which are involved in tackling the crisis have seen their stocks make considerable gains. One such company is American Bio Medica Corporation (OTCMKTS:ABMC), which is involved in manufacturing immunoassay test kits for point of collection tests for substances that are abused.
Why the Sudden Jump?
The company has successfully created a global distribution network and boasts of clients from government and workplace to educational institutions and correctional facilities. However, in recent weeks, the stock has soared considerably, and all that can be traced back to the announcement in March from American Bio with regards to its coronavirus test.
The company announced that it started offering a Rapid Test to detect COVID 19 from March 17, and considering the skyrocketing demand for such kits, it was a wise move from the company. The product is a highly promising one considering the fact that it offers qualitative as well as differential detection of the 2019 Novel Coronavirus in as little as 2 minutes.
The maximum time the rapid test can take up to deliver a result is 15 minutes. That being said, it should be noted that when American Bio Medica made the announcement, the product had not been reviewed by the United States Food and Drug Administration.
Coronavirus Testing Kits
However, as per the new guidelines set by the FDA with regards to coronavirus testing kits, the product had been allowed to go on sale. The testing kit can be deployed to make the fast screening of individuals, irrespective of the symptoms they display. However, that is not all. These testing kits can also be deployed at correctional facilities, hospitals, and clinics if need be. It should be noted that the test is not meant for consumer use and has been marketed in compliance with the guidelines laid down by the FDA.
The stock has soared by as much as 400% over the past month, and investors could do well to keep an eye on it over the course of the coming days.
The rally in the stock is the indication that the market liked what it saw from American Bio Medica, and it has become one of the more exciting stories in the small-cap space. The coronavirus pandemic is still at large, and it is likely that the demand for the rapid test is going to be there in the near term.
Hence, it will be interesting to observe how the stock performs over the coming days, and investors could also keep track of the events surrounding its rapid test. If the ‘second wave’ panic turns out to be true, then the demand for the company’s tests is going to rise.