As the Covid-19 pandemic continues to develop and shift, the need for rapid detection of viruses before symptoms arise has become increasingly clear. T2 Biosystems (NASDAQ:TTOO), an emerging leader in the field of critical testing, has made an announcement regarding exactly this. As a result, TTOO stock has been quick to shoot up.
What Happened With TTOO Stock?
T2 Biosystems is noted for its work in area of detection of sepsis-causing pathogens. In the earlier stages of the pandemic, T2 made headlines for its entry in the field of virus testing.
According to today’s announcement, the company’s T2SARS-CoV-2 Panel, a type of testing, has the ability to detect both the Mu (B.1.621) and Iota (B.1.526) variants of the SARS-CoV-2 virus.
This development has led to a very quick turnaround for TTOO stock. After a month of gradually declining by an overall total of 6.97% and trading at less than $1 per share, the stock begin to climb rapidly this morning. Despite a slight dip, TTOO stock is still up 20.59% as of this writing.
Meanwhile, T2’s larger competitor Quest Diagnostics (NYSE:DGX) is down 0.87% for the day.
What It Means
Progress in the field of rapid virus detection is beneficial for all of humanity, but when publicly traded companies make important advances forward, it can be mutually beneficial for shareholders.
As new variants continue to emerge, the need for rapid testing and detection can only increase. Medical supply companies have enjoyed generally profitable trading recently, such as Baxter International (NYSE:BAX), Becton Dickinson and Company (NYSE:BDX) and Boston Scientific (NYSE:BSX). Even as vaccine producers such as Pfizer (NYSE:PFE) and Moderna (NASDAQ:MRNA) continue to make progress, many people remain hesitant and continue to need tests. As viruses expand, so does the market for testing.
What’s Next for TTOO Stock?
As long as there are dangerous viruses, people will need to be able to test themselves for them. Demand for these devices is not going away and as such, TTOO stock is well positioned to continue increasing.
As the new variants increase in the United States, the need to test for them will expand, driving up share prices accordingly. The reason the announcement hasn’t caused prices to rise even further is likely that the two new variants around which the announcement today centered are still not prevalent in the United States. If that changes, many more people will want the ability to test for them.
The long-term future of this stock is somewhat suspect, as other companies will likely producer similar technology in the months to come. But for now, shares are down and worth buying. Ability to detect new virus strains helped TTOO stock increase before and there’s no reason to believe it can’t happen again.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.