The sheer scale of the coronavirus pandemic has unleashed a highly competitive race between several companies to come up with a range of products with a view to tackling the crisis. Hence, when two companies are competing in the same niche, the fortunes of their stocks are intertwined.
That is what happened with Co-Diagnostics Inc (NASDAQ:CODX) stock yesterday after Abbott’s ID Now rapid molecular coronavirus test recorded disappointing data with regards to sensitivity. The study was conducted in New York. In the wake of the development, the Co-Diagnostics stock surged by as much as 40%, and the reaction of the market was perfectly understandable.
Co-Diagnostics has developed its own LogixSmart Molecular test that is meant for the coronavirus, and recently, the company had announced that it has showed clocked 100% sensitivity as well as specificity. Hence, in light of the setback for Abbott, investors flocked to the Co-Diagnostics stock. The gains are substantial, and it remains to be seen if the Co-Diagnostics stock can continue to add to its gains for the rest of the week. In this regard, it should be noted that the stock has performed impressively in May so far and carried on the momentum that it had gained in April.
The Co-Diagnostics stock gained as much as 48.8% in April, and in May so far, it has gained 50.5%. The primary trigger for the rally in April was the positive data from the testing of its LogixSmart Molecular test, and the stock has soared since then due to optimism about potential sales. The momentum continued on to May, and in addition to that, there were few positive developments as well.
The LogixSmart test was given the approval for commercial sales in Mexico on May 4. On the same day, the Saragene coronavirus test developed by the company’s joint venture CoSara was given the go-ahead by the powers that be in India. Analysts have projected that the company is going to generate earnings of $.01 per share in fiscal 2020, and that is a major turnaround from the $0.36 per share loss it had made last year.