One particular category of stocks that have managed to perform well over the past ones is that one made up of companies working on a range of products meant for tackling the deadly coronavirus pandemic. One of those companies is Co-Diagnostics Inc (NASDAQ:CODX), which has been in focus among investors for having created an at-home COVID 19 test.
On Monday, the Co-Diagnostics stock was one of the major gainers after the company got a boost from the United States Food and Drug Administration. The agency awarded the saliva test for COVID 19 made by its partner Clinical Reference Laboratory an emergency use approval and that gave the company’s stock a major boost.
The Co-Diagnostics stock soared by as much as 28.3% on the back of the announcement and emerged as one of the major gainers. In such a situation, it could be highly appropriate for investors to take a closer look at the developments and then make up their minds whether they wish to invest in the stock or not.
Clinical Reference Laboratory is one of the biggest private laboratories in the United States and its COVID 19 saliva test was created by way of CoPrimer technology, developed by Co-Diagnostics. The test in question has higher sensitivity and is also capable of reducing false positives through amplification errors. Such amplification errors are quite common when it comes to molecular testing.
While the approval for emergency use from the FDA is a significant development for Co-Diagnostics, it should be noted that it is not the first such approval for the company. Back in April this year, the company’s Logix Smart Coronavirus Disease 2019 COVID-19 test had also been awarded an emergency use approval by the FDA. As a matter of fact, these products also proved to be a major boost to the company’s top line. On May 14, Co-Diagnostics reported that in the year 2020 till date, it had managed to generate unaudited revenues of $18 through coronavirus related product.
There is now a huge demand for new testing capacity as the existing ones are not delivering test results as quickly. Considering the fact that the company had already managed to post impressive unaudited revenues up until May 14, it could be argued that a significant rise in revenues could be in the offing.
It would all become clear on August 13 when the company announces its financial results for the second fiscal quarter. Its coronavirus pandemic is only getting worse at a global level and cases are rising in various countries. Hence, it is also clear that the demand for testing is going to go through the roof as well. These two factors make the Co-Diagnostics stock a compelling option for investors looking for a coronavirus play.
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