Please ensure Javascript is enabled for purposes of website accessibility

Why Co-Diagnostics Skyrocketed 28.3% Today

By Todd Campbell – Aug 3, 2020 at 4:28PM

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

The FDA has approved emergency use of its at-home COVID-19 test.

What happened

After the Food and Drug Administration approved collaboration partner Clinical Reference Laboratory's saliva test for COVID-19, Co-Diagnostics (CODX 1.60%) shares soared 28.3% on Monday.

So what

One of the biggest private lab companies in the United States, Clinical Reference Laboratory (CRL) developed its saliva COVID-19 test using Co-Diagnostics CoPrimer technology to boost sensitivity and reduce false positives by eliminating amplification errors common in molecular testing.

A toy rocket soaring into the sky.

IMAGE SOURCE: GETTY IMAGES.

The FDA's emergency-use approval for CRL's test using CoPrimer techology isn't the first for Co-Diagnostics, though. The healthcare company secured FDA emergency-use authorization for its Logix Smart Coronavirus Disease 2019 (COVID-19) test in April, and on May 14, it reported unaudited COVID-19-related revenue of $18 million year to date. 

Now what

The rapid spread of Covid-19 is contributing to a backlog of testing demand that's causing delays in test results, so there's a significant need for new testing capacity. 

The potential tailwind to Co-Diagnostics revenue from COVID-19-related testing is significant since the company's total revenue was just $1.5 million in the first quarter. Given the sales numbers reported in May and increasing testing in the United States throughout the past quarter, it appears a big quarter-over-quarter increase in revenue is on tap when management reports second-quarter results on August 13.

 

Todd Campbell has no position in any of the stocks mentioned. His clients may have positions in the companies mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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
$3.18 (1.60%) $0.05

*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 analyst team.

Stock Advisor Returns
342%
 
S&P 500 Returns
107%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/29/2022.

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.