GBS Stock: The Covid Antibody Test News Shooting GBS Shares Higher Today

Today, shares of GBS (NASDAQ:GBS) are skyrocketing following news that “the company will start preparation for clinical trials of its rapid SARS-CoV-2 antibody test.” GBS’s antibody test utilizes saliva and focuses on being non-invasive and time sensitive. So far today, GBS stock is up about 18% at the time of writing.

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Indeed, vaccine and antibody test makers have been experiencing a generous week of inclines following news of the spread of the omicron variant. The new variant reportedly causes “mild” symptoms and could potentially be more transmissible than previous variants, although it is too early to pinpoint the actual severity. It’s no surprise, then, why companies like GBS are shooting higher.

The Clinical Trial News Lifting GBS Stock

This news of trial preparation comes after the life sciences company announced that it had received successful clinical validation for its test. The clinical validation study took place at the Wyss Institute for Biologically Inspired Engineering at Harvard University. In conclusion, the study found that GBS’s antibody test was 100% sensitive using positive and negative SARS-CoV-2 human plasma samples. Additionally, the time it took to obtain results was less than 10 minutes.

Furthermore, GBS believes the novel coronavirus pandemic isn’t going away anytime soon. Dr. Steven Boyages, the interim CEO of GBS, commented that:

“As we have witnessed with the Delta variant, and now the emerging Omicron variant, COVID-19 is going to be a part of our lives for the foreseeable future. It is therefore paramount we succeed in delivering our technology to the people that need it the most as soon as possible for both population and post-vaccination screenings.”

With that said, shares of GBS stock are down 74% year-t0-date (YTD), compared to the S&P 500’s 24% return during the same period. As mentioned, GBS stock is up 18% currently. However, the stock traded 50% higher earlier today. The decline from intra-day highs may have been due to bag-holders selling out after a large spike upward.

What’s Next for GBS?

Investors in GBS stock are likely anticipating the results of the clinical trial. In the meantime, GBS will work on submitting a proposal to the Food and Drug Administration (FDA) for an Emergency Use Authorization (EUA) clearance.

While receiving clinical validation is certainly good news, the road to clinical approval is still very far away. A study conducted by MIT concluded that only 14% of candidates in clinical trials will win approval by the FDA. While approval rates fell from 2005 to 2013, they have since trended upward. Shareholders of GBS should keep this in mind as GBS gets ready to start trials.

On the date of publication, Eddie Pan 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.


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