Please ensure Javascript is enabled for purposes of website accessibility

Why Co-Diagnostics Stock Is Jumping Today

By Keith Speights - Mar 2, 2020 at 11:31AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investors liked the FDA's aggressive move to allow labs to use coronavirus tests, including one developed by Co-Diagnostics.

What happened

Shares of Co-Diagnostics (CODX 10.66%) were jumping 11.8% higher as of 11:07 a.m. EST on Monday after the company announced that its coronavirus test kits are now available to laboratories certified under the Clinical Laboratory Improvement Amendments (CLIA) guidelines.

So what

Normally labs wouldn't be able to buy Co-Diagnostics' coronavirus test kits until the U.S. Food and Drug Administration (FDA) approved the tests. However, Emergency Use Authorizations (EUA) allow labs to use products that could be effective in diagnosing, treating, or preventing diseases for which the potential for a public health emergency exists.

Female healthcare professional with a mask on her face holding a vial with a label stating "Coronavirus"

Image source: Getty Images.

The FDA issued a new policy on Feb. 29, 2020, allowing certain CLIA-certified labs to begin using validated diagnostics for COVID-19, the disease caused by the novel coronavirus, even before the agency has completed a review of the labs' EUA requests. This move underscores the FDA's desire to move quickly in response to the coronavirus outbreak.

Co-Diagnostics CEO Dwight Egan stated, "We believe this change will allow the diagnostics industry to respond to the developing situation much more rapidly and effectively, and we applaud the FDA for taking such aggressive action to address the coronavirus outbreak." He added, "Co-Diagnostics' patented CoPrimer technology has been vetted in numerous applications by some of the most highly respected firms focusing on molecular technology, and we are pleased to make this platform available domestically immediately to support the FDA's mission to slow the spread of this disease and mitigate its impact."

Now what

Co-Diagnostics is talking with multiple CLIA labs about using its COVID-19 tests. The company has already shipped its tests to several countries. The healthcare stock has been one of the biggest winners so far in the coronavirus epidemic.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Co-Diagnostics, Inc. Stock Quote
Co-Diagnostics, Inc.
CODX
$5.50 (10.66%) $0.53

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
356%
 
S&P 500 Returns
124%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.