GenMark Diagnostics (NASDAQ:GNMK) is looking to leverage new interest — and new necessity — when it comes to the novel coronavirus. News of its innovative test kit, and emergency-use authorization, is sending GNMK stock higher Friday.
So what exactly is happening? Well, GenMark Diagnostics is a provider of molecular diagnostics. It wants to make testing for all sorts of diseases and bacteria easier, better and more reliant on powerful technology. In fact, the company started back in 1993 with a bold idea for an electronic sensor that could detect DNA.
Clearly, GenMark knows a thing or two about diagnostics. With that in mind, it set out to develop the best test kit for the novel coronavirus. Importantly, it wanted to create something that offered more insight. If a patient has respiratory symptoms but not the coronavirus, GenMark wants to figure out what is causing those symptoms.
That idea is exactly what has GNMK stock popping on Friday. The company took its bold plan, and developed the ePlex Respiratory Pathogen Panel 2 (RP2). Investors should note that not only does this panel test for the coronavirus, but it also provides results for more than 20 different viruses and bacteria. Now, you can know in just two hours whether you have the coronavirus or something less sinister, like the flu or a common cold.
That makes a lot of sense, and thankfully, the U.S. Food and Drug Administration agrees. The regulatory agency just granted the ePlex panel an EUA.
GNMK Stock Pops on New Coronavirus Test
Perhaps one of the best way for investors to understand the importance of the ePlex panel is to examine a real-life example. GenMark tells a story of a nurse, an employee at a hospital that has been testing the panel. When she developed a fever at work, she was immediately able to use the panel. Instead of the coronavirus, she had a common cold.
This matters for two reasons. First, it set a clear path for when she could return to work. Second, it provided more certainty. Simply testing negative for the coronavirus may not give peace of mind. But with the ePlex panel, you know exactly what is causing your symptoms.
As a second — or third — wave of the coronavirus continues to hit the world, and as flu season ramps up, this diagnostic panel will be more important than ever. Consider the wide variety of viruses and bacteria it tests for, and also its two-hour turnaround time. Like with the nurse, the ePlex panel could very well be what investors are waiting for. In other words, it could help bring about a return to normal.
Nothing is a sure thing in the coronavirus drug and vaccine race, but GNMK stock is worthy of staying on your radar.
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 for InvestorPlace.com.