What happened
Shares of OPKO Health (OPK -1.92%) were soaring 23% at 11:15 a.m. EDT on Tuesday after management disclosed on Monday it will provide coronavirus testing to all 32 teams in the National Football League.
So what
Previously, OPKO Health's BioReference Laboratories announced it will provide COVID-19 testing services to businesses, including the National Basketball Association. On Monday, management confirmed on CNBC's Mad Money that the NFL has selected it to provide COVID-19 testing, too.
Image source: Getty Images.
Landing testing contracts from high-profile businesses such as professional sports leagues is a testament to the healthcare company's ability to deliver timely results.
BioReference began offering testing in March. In June, management reported it had performed over 1 million tests through local, state, and federal partnerships. Nationwide, it can perform 450,000 tests per day, with an average lab turnaround time of six hours for priority accounts like the NBA and NFL.
Now what
OPKO didn't disclose financial details for the NFL or NBA deals, so it's unlikely they are material in size relative to the company's total revenue. In Q1, OPKO generated $211.5 million in sales, down 4.9% year over year, including $170.8 million in services revenue.
Its first-quarter performance only hints at how surging COVID-19 testing demand is affecting revenue, though, because BioReference only began providing COVID-19 testing on March 13. The second-quarter results will provide more insight, so investors will want to pay close attention in early August, when those financials are reported.
