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Why Co-Diagnostics Stock Is Shooting Higher Today

By Eric Volkman - Feb 24, 2021 at 3:22PM

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Its technology underpins a coronavirus test that's about to get much wider distribution.

What happened

Co-Diagnostics (CODX 11.17%), considered a coronavirus stock because of its COVID-19 testing products, was up by nearly 9% in midafternoon trading on Wednesday. That's hardly surprising, since a major pharmacy chain announced today that a test using the company's technology is now available through its digital healthcare platform.

So what

That announcement came from Walgreens Boots Alliance (WBA 1.37%), which is stepping up its efforts to make coronavirus diagnostic products more readily available to its customers. Among these products is COVID-19 RT-PCR, an in-home saliva test manufactured by privately held Clinical Research Laboratory.

Stethoscope atop 100 dollar bills and pennies.

Image source: Getty Images.

The test, which has Emergency Use Authorization from the Food and Drug Administration, harnesses Co-Diagnostics' patented testing technology. In Walgreens' announcement, the company quoted Clinical Reference Laboratory CEO Robert Thompson as saying that the test "demonstrated highly accurate results with 100% sensitivity and specificity in its FDA EUA filing."

COVID-19 RT-PCR will be available through Walgreens Find Care, the pharmacy operator's online healthcare portal. Users can order it if they meet at least one of the clinical guidelines for testing (this is ascertained through a short questionnaire). Once they complete the test, they ship it via Federal Express (FDX 3.34%); results are usually available within 24 to 48 hours.

Now what

Co-Diagnostics can only benefit from having its technology used in a test that suddenly has much wider distribution, and through a top pharmacy portal at that. While COVID-19 cases and fatalities are dropping significantly, this pandemic is far from over, and convenient testing solutions remain in high demand.

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Stocks Mentioned

Co-Diagnostics, Inc. Stock Quote
Co-Diagnostics, Inc.
$5.53 (11.17%) $0.56
Walgreens Boots Alliance, Inc. Stock Quote
Walgreens Boots Alliance, Inc.
$43.63 (1.37%) $0.59
FedEx Corporation Stock Quote
FedEx Corporation
$219.38 (3.34%) $7.09

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