Table Of Contents
- Co-Diagnotics Stock Price Soared to $11.30 After Hours
- Origins & Rise of Co-Diagnostics Coronavirus Test Kits
- CE-IVD Logix Smart Co-Diagnostics Coronavirus Test Kit
- Co-Diagnostics Partners with Cosara to Produce Coronavirus Tests for India
- Why is the (CODX) Co-Diagnostics Stock Price Soaring?
- Zacks Upgrades Co-Diagnostics Stock Price Rating to “Strong Buy”
- Summing Up Co-Diagnostics Stock Price Jump
Co-Diagnotics Stock Price Soared to $11.30 After Hours
Why did the Co-diagnostics stock price jump? The CODX stock price soared 37% in 2 days, soaring to $11.30 after-hours on Friday, April 4th, 2020 following an announcement of an FDA approval to ship Coronavirus tests within the United States and its rapidly growing demand. Co-Diagnostic was already shipping its Coronavirus test kits all over Europe and India prior to securing an Emergency Use Authorization from the FDA last week. Recently HC Wainwright was one of many experts to project a target Co-Diagnostics stock price of $20 after issuing a “Buy Rating”, citing strong earnings and key approvals from the FDA and the European Union. Zacks upgraded their rating of Co-Diagnostics to a “Strong Buy” after learning about their Covid-19 test having 100% accuracy and specificity during clinical evaluations, as well as it being the fastest covid-19 test on the market to produce positive or negative results. Lastly, Co-Diagnostics (CODX) is supplying their Covid-19 Test Kits to India and its massive population of 1.4 billion people after partnering with Cosara. So you may be asking yourself, how did we get here?
The virus that causes the COVID-19 illness was reported to the World Health Organization on December 31, after many cases appeared in Wuhan, China.
The source of the virus is believed to be what is known as a ‘wet market’ where both dead and living animals are sold and where hygiene standards aren’t well maintained. Since the start of the disease, many countries the world over are counting their dead with this pandemic, and governments the world over have declared lock-downs and social distancing.
COVID-19 tests are available to those people whose doctors find that they meet specific case criteria. Testing is critical for infected people and the test kits need to be used responsibly and for the correct people as you don’t need to test if you have no symptoms and you’re just looking for reassurance that you don’t have the virus.
World Health Organization’s Simple Message – TEST for Covid-19!
The World Health Organization’s director-general Tedros Adhanom Ghebreyesus has given a simple message to all nations, and that is ‘test’! However, different countries apply different strategies with testing for COVID-19, and policies around the world vary and this is because of the issue around supplies and shortages.
Medical testing kits help healthcare professionals to test for different kinds of diseases, one of which is the Coronavirus. This seriously deadly virus has meant that there is a massive demand for testing kits not only in the United States where there are shortages but all over the world, specifically Europe and India. Without coronavirus test kits, you can’t get down to addressing the problems of the disease full on.
Thankfully there are companies developing, manufacturing, and selling the coronavirus test kits for coronavirus and they are addressing the shortages associated with these covid-19 test kits in the United States and all over. At first, only CDC’s coronavirus test kits were approved for use, but the need is greater now, particularly because of the unreliability of the first CDC kits.
This corona testing is referred to as PCR – Polymerase Chain reaction testing and starts with a nasopharyngeal daub, collecting saliva, mucous, and bits of cells as well as viral RNA, if present. A sample is then sent off to the laboratory where chemicals are applied to clear away everything except the RNA. The enzymes are added to get DNA which is set into a PCR machine with other chemicals.
The samples are heated and cooled by the machine. Eventually, if the presence of viral genetic material is detected, these fragments bind to it and scientists are able to determine the presence of the virus in a sample. It is interesting to know that the CDC’s initial flounder test for coronavirus happened to be a PCR test.
After the failure, the FDA issued what is known as Emergency Use Authorizations for the private labs to come up with their own PCR tests and which would not need to go through the lengthy process of FDA approval. Since March 30, twenty emergency authorizations were given for different tests. These tests that were privately developed differ a little bit from one another, homing in on diverse areas of the coronavirus genome.
Independent companies and labs like Co-Diagnostics (CODX) have now been developing kits as the FDA has relaxed regulations. In fact, because the need is so enormous, the FDA has allowed companies to distribute tests without an official review from March 16. Some of these manufactures such as CODX are already selling kits.
Co Diagnostic’s CE-IVD Logix Smart COVID-19 test kit makes use of a mathematical algorithm and AI to detect the disease, delivering results in about 90 minutes. Also, the company offers its kits with an affordable price tag that is described as a ‘compassionate pricing model’. The company wants to keep prices affordable in an emergency situation.
The CEO said their kits were being used in countries such as Italy, where the coronavirus outbreak has been particularly bad. Whatever the US government requires, the company is ready to provide, saying they weren’t in competition with the CDC but were just saying that they will always be there when there’s a need. In fact, Kelly Wroblewski, director of infectious diseases at the Association of Public Health Laboratories, said they had ordered kits from CDC.
No company can just willy nilly just produce testing kits. A company has to get approval from regulators. Without governmental clearance, even the best COVID-19 testing kits won’t profit a company. Luckily Co-Diagnostics (CODX) was able to clear its regulatory hurdles, and in fact, the company earned a key European approval early in the year. Their Logix Smart COVID-19 Test kit got CE marking approval in February 2020.
The test kit is a single-step, real-time coronavirus test kit and because of its speed, it became highly sought after. And the company is confident of its ability to meet the increasing demand for coronavirus test kits.
The company announced recently that CoSara Diagnostics Pvt Ltd, a joint venture based in India, is the first company in India to get a license to manufacture this coronavirus (COVID-19) test kits.
A number of private companies have been granted test licenses by the DCGI for evaluating the quality of the COVID-19 testing kits. One of these is CoSara Diagnostics from Ahmedabad. CoSara has the exclusive manufacturing rights for all of Co-Diagnostics infectious disease molecular diagnostics kits. They will be selling the tests in India as well as the surrounding area sending the Co-Diagnostics stock price through the roof.
CoSara got approval for the license from India’s Central Drugs Standards Control Organization in January. The total number of Coronavirus cases in India is expected to soar due to its massive population of 1.4 billion and densely populated cities. That’s 1 BILLION more people than the population of the United States. Cosara and Co-diagnositcs test kit will be readily available to help Indian and its enormous population fight covid-19 and the coronavirus pandemic.
Co-Diagnostics History and Background
Co-Diagnostics, Inc. CODX is a molecular diagnostics organization that markets its products worldwide. They develop and manufacture reagents that are used for diagnostic tests and offer diagnostic tools from other producers as self-contained lab systems.
CODX is determined to provide innovative molecular tools for the detection of infectious diseases and more so in areas where pricing is paramount. The company is, therefore, able to accomplish this faster and more economically, putting them ahead as a world leader in terms of low-cost molecular diagnostics services.
In fact, the company owns all the technology on which its products are designed and this is precisely what allows for more affordable testing.
Co-Diagnostics, Inc has its Utah corporation in Salt Lake City, Utah. The company commercializes its patented and patent-pending technology through licensing, development, and sales to develop cost-effective, better-performing molecular diagnostics.
They develop tests related to many disciplines, of which infectious disease is just one. Major advances connected with them are shorter turnaround times as well as higher productivity, particularly these days with the demand for coronavirus test kits.
The company is certified for the design and manufacture of medical device products and their covid-19 test kits will be available to many US labs, without the need to first get Emergency Use Authorization. The coronavirus test kits have received a CE mark from European regulators, making Co-Diagnostics CODX the first US company to earn this distinction.
The high-quality tests will have a positive impact on the healthcare market. India has a massive population of 1.3 billion, and they also have a lockdown. Many have tested positive and yet the government has only been testing about 90 people each day. There are 52 government-approved testing facilities, and delivering the kits to these is imperative as well as to 60 accredited private labs.
The company’s sales of the amazing test kit are being revved up as the 2 -hour Logix Smart COVID-19 Test has gone through a clinical assessment. They are also able to multiply sales of the kit because of a new change in the FDA, the US Food & Drug Administration policies that allow companies to actually commence sales of the coronavirus tests while still waiting for FDA clearance.
The COVID-19 test has been already sent to no less than 5 continents and also to CLIA certified laboratories that meet specific requirements. Because of this new FDA policy the company says it will be able to provide even more U.S. laboratories with access to this test. And then, the company’s strategic partnership in India also obtained a license to produce coronavirus tests, and this, of course, multiplies the organization’s total capacity by three times.
The company believes that the massive demand for quality, reliable kits is at an all-time premium as the disease spreads rampantly. A company spokesperson believes that it’s the best performance of the kits, combined with speed and affordability that makes it more in demand than any other testing alternatives.
There are companies with distribution rights that have ordered thousands upon thousands of the tests and had already secured the first covid-19 test kits to begin filling the orders.
The distribution companies reckon that the Co-Diagnostics test is the most accurate for detecting the coronavirus presence.
Co-Diagnostics CODX also happens to be the first US company to have received a CE-mark from the EU for its coronavirus diagnostic test and its the reason is it able to ship orders to different continents and countries.
Why is the (CODX) Co-Diagnostics Stock Price Soaring?
Capacity of 50,000 Tests Per Day
With the coronavirus, there is no time for dithering because without rapid testing the further risk of infection is on the cards. You need tests that allow healthcare providers to perform molecular point-of-care testing anywhere really in what is known as outbreak hotspots.
The ability to perform 50 000 tests in a day is spectacular and guaranteed to help expand national testing capacity. With so many tests being performed in one day, it can reduce the testing backlog that exists. The country can’t afford to have people waiting for weeks for tests.
What needs to be made clear is that the Co-Diagnostics test kits differ from others in their speed from test to results. Just as an example, the company Roche promises to have results distinguishing a COVID-19 infection in 3-1/2 hours, but the test offered by Co-Diagnostics can be completed in under 2 hours.
All this waiting just brings on a host of problems, more so for high-risk patients. The United States has more confirmed cases of coronavirus than any other country in the world. There are thousands of coronavirus tests being performed each day, but health experts say that far more tests are needed each day so as to quickly separate infected patients.
Early in March, the medical testing company announced that its coronavirus tests were available for sale to United States laboratories, and this news sent its stock soaring to almost 35%. These tests, which happen to also have screen technology for TB and Zika were made available for laboratories to buy by those laboratories that are certified under Food and Drug Administration guidelines which are known as the CLIA.
The FDA has changed its policies in an effort to address bottlenecks in testing and tackle the many issues surrounding the coronavirus outbreak, seeing the need to speed up the diagnosis of people infected with the deadly virus. Of course, the increased testing will reveal even more positive COVID-19 diagnoses across the United States.
Early in March, the coronavirus had already infected at least 87 people in the United States and 6 of them had died. In April 2020, a month later, in the US alone, there are more than 277,000 cases, with the disease having already killed thousands worldwide. The new guidelines allow these FDA-approved labs to start using the diagnostic tests even before the agency has assessed them.
Health experts believe that this will surely speed testing and help to contain the spread of the deadly virus. In other words, laboratories no longer have to wait for FDA approval before ordering the tests.
The CEO at Co-Diagnostics CODX said that this positive change will at least allow the diagnostics industry to respond to the situation more rapidly and effectively. The company has already sold thousands of the Co-Diagnostics Covid-19 tests to laboratories in Europe after it’s European approval in late February. The CEO went on to say that the company’s Utah facility was able to produce about 50,000 coronavirus test kits a day, saying that they’re able to handle whatever kind of demand there is in the United States.
Zacks Upgrades Co-Diagnostics Stock Price Rating to “Strong Buy”
Zacks.com recently announced the list of stocks appearing in the Analyst Blog. Analysts from the Zacks Equity Research meet each day to talk about the most recent events and news that have an effect on the financial markets and stock. Stocks that recently appeared in the blog were Netflix Inc, Microsoft Corp, Sempra Energy, Co-Diagnostics, Inc. as well as Moderna, Inc.
Some interesting aspects coming out of the blog include items such as how there are actually ways to mitigate the damage to your portfolio during the coronavirus crisis. Stock markets have plummeted as one volatile week follows another.
The coronavirus is scaring investors, with the downturn market being seen as a long, dark night with no morning. Investors just have to remember though, that even though the coronavirus is monumental in its awfulness, this isn’t the first market dip, and it’s time to just check out your investment strategies. Experienced and naturally savvy investors have the knack to profit during uncertain times.
There are some excellent stocks in this current market environment and you want to choose a stock that benefits from the crisis. Investors should be looking to buy stocks that are involved in research and the development of vaccines and covid-19 test kits for the deadly coronavirus. Many consider Co-Diagnostics, Inc CODX to be one such company as a molecular diagnostics company. They have done the world a favor by bringing a fast, accurate, easy-to-use, affordable molecular diagnostic test called the Logix Smart Coronavirus COVID-19 test.
These kits have a CE mark of approval from the EU to make the coronavirus test kits and they have a Zacks Rank #1. The Zacks Consensus Estimate for its next-quarter profits moved up by 28.6% and the company’s likely earnings growth rate was 44.4%. The consensus among investment analysts is to buy shares of Co-Diagnostics Inc. Many analysts offering 12-month Co-Diagnostic stock price forecasts for CODX have a high target stock price estimate of 20.00.
Zacks has released its prediction for CODX based on the 1-3 month trading system and says CODX can prove to be a trustworthy extension to the portfolio because of its latest advance to the Zacks Rank #1 (Strong Buy). The Zacks rating relies on a company’s shifting earnings which is a strong factor affecting near-term stock value movements.
The Zacks rating upgrade for Co-Diagnostics, CODX. reflects positivity about its earnings outlook. Rising earnings estimates, as well as the rating upgrades for the company, are indicative of an advance in the corporation’s business, and investors are happy with this trend by driving the Co-diagnostics stock price higher.
The Zacks Rank stock-rating system uses 4 factors linked to earnings valuations to classify stocks groups, starting with Zacks Rank #1 which is Strong Buy. Rank #5 is Strong Sell. Analysts are raising their assessments for Co-Diagnostics CODX and recently the Zacks Consensus Estimate for the group has increased 800%.
Co-Diagnostics Stock Price – Solid Addition to your Portfolio
The coronavirus is taking its toll on global financial markets and there is plenty of news everywhere about what investors are doing with their stock portfolios in response to the chaotic times we find ourselves in.
When we watch the likes of BBC and CNN, you can see that the headlines give plenty of reasons for investors to get nervous, even seasoned investors. No one can see or predict the direction of the markets. Holding on through volatility is historically a successful strategy. This is very different from past health crises because the Coronavirus is much more contagious and much more deadly. The mortality rate of the coronavirus is about 30 times higher than the flu. No one can know when the Coronavirus will subside and the world is waiting for a vaccine and for the economy to return to normal.
Don’t give in to the desire to sell
The European Central Bank, as well as the Fed, have applied monetary measures to calm the markets, and yet investors are still ruffled as interest rate cuts don’t address issues such as people aren’t working, they’re not buying except for essentials and they’re not traveling. There are however ways to put your money to work in the stock market. The idea is to buy a pandemic-proof stock that is able to hold up well during a potential downturn, and the Co-diagnostics stock price seems to be doing just that.
Certainly, as the virus peaks, we will be seeing more deaths and more lost jobs and if you’re an investor, the word out there is to not give in to the desire to sell. Legendary investor Ben Graham’ said that the intelligent investor is a realist who sells to optimists and buys from pessimists. His advice is to actually consider adding to your investment portfolio during troubled times.
CODX can prove to be a reliable addition to your portfolio as the Co-diagnostics stock price jumped. This is particularly true when you bear in mind its latest ascent to a Zacks Rank #1 (Strong Buy). The rating depicts an ascensional trend in the earnings valuations. The Zacks rating relies essentially on a company’s shifting its earnings picture.
The Zacks rating method is useful for those investors who find it hard to make investment choices based on the rating upgrades by analysts of Wall Street which are driven more or less by subjective factors. The Zacks rating rise for Co-Diagnostics reflects positivity about its profits outlook.
Summing Up Co-Diagnostics Stock Price Jump
The COVID-19 pandemic is something no one can predict in terms of where it will go and what it will do. The truth is, even though we are receiving statistics on new cases and deaths, the total number of COVID-19 cases is unknown. It is however certain that the total number of COVID-19 cases is higher than what we hear and know. As the World Health Organization and the CDC have suggested the best way to have accurate numbers and contain and slow the spread of the coronavirus and is through testing. Tests like the Co-diagnostic CE-IVD Logix Smart COVID-19 test kit can help the global community.
However, the goal of everyone should be to make the best of the situation. For investors, there are still a number of ways to invest during the crisis, with most traders focusing on the coronavirus stocks which represent companies working on vaccines and treatments. For the rest of us, there are many hours at home to think of all the new ways we will approach life when the virus finally ups and leaves and we’re free to continue with a new way of life.
