The coronavirus pandemic may have unleashed mayhem in the stock market and sank many stocks across the board, but there is a minority of stocks that have managed to makes significant strides during the period. One of those is Aytu Bioscience Inc (NASDAQ:AYTU), which has gained as much as 330% in the past one month on the back of a major announcement with regards to its coronavirus testing kits.
First Commercial Shipment
The company had earlier announced that it was going to sell a rapid coronavirus test that was going to produce the results in a matter of two to ten minutes. Since then, the stock has been in the news.
On Thursday, the company announced that it has started shipping the IgG/IgM Rapid Test to customers in the United States. The company had earlier announced that it had received the shipment that contained a total of 1,00,000 such testing kits. However, Aytu had to relabel those kits in accordance with the compliance rules laid down by the United States Food and Drug Administration. Once that was done, Aytu started shipping the product.
A wide range of customers from the healthcare industry have come forward and placed orders for the test.
It seems that there is considerable demand for the product and it is only natural considering the speed at which the pandemic has spread in the United States. There is a huge demand for such testing kits that can produce results quickly. At least in the short term, Aytu is not going to struggle when it comes to fulfilling orders. After it received the 100000 kits, Aytu announced that it expects to receive as many as 500,000 more rapid test kits. That should allow the company to meet the demand if the orders start coming in rapidly from across the United States.
It could be worthwhile for investors to keep a close eye on the development in the coming days.