Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Quidel Rapid Antigen Test for COVID-19 Wins Authorization

By Jim Crumly - Dec 21, 2020 at 2:25PM

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

A new point-of-care test is both fast and accurate.

Diagnostic healthcare specialist Quidel ( QDEL 0.99% ) today announced it has received Emergency Use Authorization from the Food and Drug Administration for a rapid COVID-19 antigen test that returns results without the use of a test instrument. Shares were soaring 8% today on the news.

Quidel's QuickVue SARS Antigen test uses a nasal swab sample taken by a healthcare professional and returns results on a test strip within 10 minutes. The test is designed to be administered to patients suspected of COVID-19 within the first five days of the onset of symptoms and has a positive predictive agreement of 96.6%.

Healthcare professional with a swab and test tube.

Image source: Getty Images.

Quidel expects the test will help meet urgent testing needs in school systems and rural locations, saying that it plans to reach a production run rate of 600 million tests by the end of next year. The company's Sofia 2 test instrument also supports a rapid antigen test for the SARS-CoV-2 virus, and the U.S. Department of Health and Human Services is buying 2,000 of the machines for placement in nursing homes.

Shares of Quidel have pulled back 34% from their high this summer as vaccines have come to the forefront and investors have become worried about competition from industry giant Abbott Laboratories ( ABT 1.47% ). Abbott has rapid test similar to Quidel's and announced last week a service to enable at-home use by consumers. But the demand for COVID-19 testing seems almost limitless at the moment, and investor interest in Quidel rebounded today.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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

Quidel Corporation Stock Quote
Quidel Corporation
QDEL
$147.95 (0.99%) $1.45
Abbott Laboratories Stock Quote
Abbott Laboratories
ABT
$130.27 (1.47%) $1.89

*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
640%
 
S&P 500 Returns
139%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/03/2021.

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

Our Most Popular Articles

Premium Investing Services

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