Why Co-Diagnostics Stock Jumped Today

a close up of a piece of paper: Why Co-Diagnostics Stock Jumped Today

© Provided by The Motley Fool
Why Co-Diagnostics Stock Jumped Today

What happened

Shares of Co-Diagnostics (NASDAQ: CODX) were jumping 17.4% as of 3:09 p.m. EST on Wednesday. The gain came after the company announced that its joint venture, CoSara Diagnostics, received clearance in India to market the Saragene COVID-19 diagnostic test.

So what

Why are investors cheering Co-Diagnostics’ announcement so much? It’s not every day that a company gets a green light to market a product in the country with the second-largest population in the world. 

a close up of a logo: Vial labeled COVID-19 on top of an Indian flag

© Getty Images
Vial labeled COVID-19 on top of an Indian flag

India has had nearly 9.3 million cases of COVID-19 reported so far this year. Although the number of daily cases has declined in recent weeks, more than 40,000 new cases are diagnosed in the country daily. India’s prime minister supports increasing the availability of genomic COVID-19 tests to help keep the positive test rate below 5%.


Load Error

This wasn’t CoSara’s first molecular diagnostics test to win clearance in India, though. Co-Diagnostics’ joint venture previously received clearance in the country for tests for mycobacterium tuberculosis, malaria, hepatitis B, hepatitis C, and human papillomavirus.

Now what

Investors will want to watch the financial impact of Saragene COVID-19 sales in India for Co-Diagnostics. The healthcare stock sank last week after the company missed analyst estimates with its third-quarter results. But today’s positive development in combination with the worsening of the COVID-19 pandemic in many countries could translate to stronger revenue and earnings growth for Co-Diagnostics in the fourth quarter.

Keith Speights 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.


10 stocks we like better than Co-Diagnostics, Inc.

When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now… and Co-Diagnostics, Inc. wasn’t one of them! That’s right — they think these 10 stocks are even better buys.

See the 10 stocks


*Stock Advisor returns as of November 20, 2020


Continue Reading

Source Article