Investors, doctors and health researchers can all take a breath of relief. Tiny biotech company Astrotech (NASDAQ:ASTC) thinks it has a new solution for novel coronavirus testing, and all it needs is a little bit of human breath. As a result of this news, Astrotech stock is absolutely soaring.
So what exactly is the news about? Since March, Astrotech has been working on a solution to coronavirus testing. The company has been developing a breath-based test to screen for lung infections, including Covid-19. It took that news a step further Wednesday — announcing it had an agreement with the Cleveland Clinic.
Importantly, through its subsidiary BreathTech, Astrotech will be working to develop a rapid breath test for the coronavirus. The company is in the process of developing BreathTest-1000, a screening test for lung infections. Now, thanks to its new partnership with the Cleveland Clinic, it will work to rapidly screen for the novel coronavirus.
How exactly does it work? Well, back in March, BreathTech wrote that its test screens for volatile organic compound metabolites. These compounds can be found in mouths, and can often indicate the presence of a cold or other infection. For BreathTech, this innovation is all about improving accuracy and accessibility. Investors likely appreciate that, especially given recent developments in the pandemic.
Astrotech Stocks Soars on Coronavirus Testing Plans
So why does this really matter? There are already plenty of tests in development and on the market from the likes of Abbott Laboratories (NYSE:ABT). Well, according to Astrotech, these breath tests solve a number of existing problems.
To start, they are way less invasive. Instead of requiring a swab up the nose, a urine sample or an X-ray, individuals would simply need to breathe into the tester. This design also means that they face less supply and scale issues. As a second wave of the virus picks up around the world, many have called for increased testing to facilitate the return to school and work. However, there simply are not enough rapid tests on the market. According to the Cleveland Clinic, the test from Astrotech may very well be a way around all of those issues.
Importantly, Astrotech is promising more than just rapid results. Since March, the company has touted that its tests will offer 100% accuracy.
Unsurprisingly, both individual and institutional investors are going nuts at the idea of a rapid breath test. Astrotech reported that it has already entered definitive agreements with several institutional investors to purchase common stock. But the little guys love it too. Astrotech stock is up more than 160% in intraday trading.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer at InvestorPlace.com.
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