Today, shares of Chembio Diagnostics (NASDAQ:CEMI) rocketed higher on record volume. How high? Well, investors in CEMI stock have seen the stock skyrocket more than 60% today. This spike comes as the company made a key announcement. Its single-day volume of more than 200 million shares blew away CEMI’s average trading volume around 1 million shares per day.
Indeed, with this kind of volume, there’s something going on.
The company announced it has commercially launched a Covid-19 rapid test. This test has been granted emergency-use authorization by the U.S. Food and Drug Administration. Furthermore, the company notes its rapid test is now available for shipment. This commercial launch has been met with significant investor interest today.
Here’s more on why this announcement is a big deal for Chembio shareholders.
Rapid Test Provides Excellent Point of Care Options for Providers
Chembio’s VP of Sales and Marketing, Charles Caso, commented on the key differentiating factor of the company’s rapid test in Chembio’s press release today. He said:
“As COVID-19 converges with the flu, it is critical for physicians to be able to quickly differentiate between these viruses at the point-of-care, which present with nearly identical symptoms, in order to take appropriate clinical actions and maximize efficient use of healthcare resources.”
Indeed, the ability for physicians to differentiate between Covid-19 antigens and influence strains is huge. Differentiating between the two illnesses with similar symptoms will become ever-more important, particularly as vaccination efforts pick up. Correctly identifying the viral infection patients have will be a key point-of-care focus for providers. Chembio’s product aims to solve this problem.
Indeed, investors have reason to cheer this announcement. The demand for the types of products Chembio produces is likely to remain strong for some time. As healthcare systems work on ways to create efficiencies, these sorts of rapid tests could see rapid adoption.
Accordingly, CEMI stock is one I’d suggest investors put on their watch lists today.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article.