As the coronavirus pandemic continues to rage with no end in sight, there is no doubt that the demand for testing kits is going to go through the roof and that makes the Decision Diagnostics Corp (OTCMKTS:DECN) stock an interesting proposition. On Monday, the company made an important announcement through its subsidiary Pharma Tech Solutions and that resulted in a 10% rally in the Decision stock.
What to Expect
The United States Food and Drug Administration recently published its template for the COVID 19 At-Home Use template and in its announcements, Pharma Tech supported the template. The company went on to add that the much of the template actually contains a lot of what was already there in the company’s application to the FDA for an At-Home application back on May 1.
Pharma Tech revealed that it is fully behind the new template provided by the agency and is now making amendments to its EUA application for its GenViro! Blood Swift Kit product meant for home use. The company went on to add that it is going to file a separate EUA application soon after all the amendments have been made. In this regard, it is necessary for investors to note that the FDA has not yet authorized any testing kit for at-home use.
However, collection kits have been authorized. Healthcare experts, however, think that if asymptomatic people are allowed to use standard at-home testing kits then it could be a game-changer. The collection kits that are in use do not offer the possibility of at-home testing.
While this is a significant boost for the company, the market recognized the positives as well and the rally in the stock was quite impressive. However, it remains to be seen if the Decision stock can maintain the momentum today and continue to add to its gains. Investors could do well to keep a close eye on the stock.
One important thing that needs to be recognized that the product presents a global opportunity for the company and last month, Pharma Tech signed a key distribution agreement. The company announced that it reached a distribution agreement for the GenViro! Blood Swift Kit with Global Swift Sensor Distribution.
The distributor is going to represent the company’s products on a first to market but the non-exclusive basis in Australia, India, Bangladesh, Nepal, Sri Lanka, Vietnam, Indonesia, Singapore, and Thailand. It is also necessary to point out that two offers for distribution from Argentina and Brazil are also under consideration. The company’s testing kits have now become the talk of the town, as it were, among market participants and have emerged as a compelling option for many. Investors could do well to keep an eye on the developments in the coming weeks.
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