Please ensure Javascript is enabled for purposes of website accessibility

120 Million Coronavirus Tests to Be Sold to Low- and Middle-Income Countries at Steep Discount

By Eric Volkman – Sep 29, 2020 at 10:04AM

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 portable, fast, and easy-to-use tests will be supplied by Abbott and SD Biosensor.

A global partnership will be making 120 million rapid coronavirus tests available to 133 economically less-advantaged nations at heavily discounted prices, the World Health Organization (WHO) announced on Monday. The tests will be supplied by U.S.-based Abbott (ABT -0.24%) and South Korea's SD Biosensor, over a period of six months, and will cost the purchasing nations $5 or less apiece.

The plan is the result of a series of agreements between the two pharmaceutical companies and several nonprofit organizations, NGOs, and public health agencies, including the WHO, the Bill and Melinda Gates Foundation, and the Global Fund.

The rapid diagnostic antigen tests produced by Abbott and SD Biosensor are both easily portable -- all the better to transport to remote areas -- and relatively straightforward to administer. Another advantage is that they do not require laboratory processing, and produce reliable results in half an hour or less. 

Coronavirus.

Image source: Getty Images.

This initiative will be bolstered by an initial $50 million provided by the Global Fund, an international nonprofit dedicated to tackling epidemics. That will provide for an initial 10 million tests, the first orders for which should be placed this week.

"Testing is a critical cornerstone of the COVID-19 response, enabling countries to trace and contain the virus now, and to prepare for the roll-out of vaccines once available," the WHO said in the press release announcing the initiative. "Effective testing strategies rely on a portfolio of test types that can be used in different settings and situations.

Although numerous COVID-19 vaccine candidates are currently in development, none has yet completed its clinical testing, nor have any been approved for use by a major regulator.

Eric Volkman has no position in any of the stocks 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

Abbott Laboratories Stock Quote
Abbott Laboratories
ABT
$98.48 (-0.24%) $0.24

*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.