T2 Biosystems (NASDAQ:TTOO) is hoping to make a difference in the fight against the novel coronavirus pandemic, and its success is encouraging investors. Today, a new company update has TTOO stock up more than 50% in pre-market trading. So what was that update? And what else do you need to know now?
To start, T2 Biosystems is a specialist in in vitro diagnostics. Some of its solutions include testing unpurified samples of whole blood, saliva, cerebral spinal fluid and more for abnormalities. More recently, the Massachusetts-based company has been focusing on its testing platform for Covid-19.
Essentially, T2 Biosystems has its T2Dx Instrument, which has full backing from the U.S. Food and Drug Administration. This instrument can run seven tests simultaneously and as many tests as 60 a day. Importantly, the company has been using this platform for its T2SARS-CoV-2 Panel. This panel uses an upper respiratory swab sample and can deliver Covid-19 test results in under two hours. Additionally, trials have found that it is 95% clinically sensitive and has 100% specificity.
While that is exciting, what is behind the spike in TTOO stock today?
Yesterday, T2 Biosystems shared a positive update about its testing panel. Including to its latest studies, its swab can actually detect the Brazilian strain of Covid-19. Since the end of January, reports from the U.S. confirm that this strain is present. And as the nation works to stay on top of the latest viral strains and protect the population, accurate diagnostic results are important.
For now then, it seems that TTOO stock represents a certain peace of mind about Covid-19.
What to Know About TTOO Stock
So what else should you know about T2 Biosystems and TTOO stock? Two other things stand out about its panel and the T2Dx Instrument. The first is that from previous testing, the company has already demonstrated that its panel works with the United Kingdom and South Africa variants. With public health officials honing in on these new strains, this is a good sign for the company.
Additionally, the T2Dx Instrument should offer T2 Biosystems growth beyond the pandemic. The testing platform also works with its T2Bacteria and T2Candida panels. These are the only panels that have FDA approval for diagnosing sepsis-causing bacteria and fungal pathogens.
Right now then, the TTOO stock news looks exciting. However, there is reason to be cautious. T2 Biosystems shares trade hands for less than $5 and can be volatile with news. That means you should do your own research while you keep the company and its testing products 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 with InvestorPlace.com.