Specializing in molecular diagnostic polymerase chain reaction (PCR) tests, Co-Diagnostics (NASDAQ:CODX) represents an extremely relevant business in the new normal. Early this morning, the company announced that it shipped testing reagents for the monkeypox virus to one of its international distributors. In response, CODX stock popped around 5% in early afternoon trading.
According to the press release, Co-Diagnostics expedited the development and manufacturing of these reagents due to demand. This comes as the monkeypox virus has been identified in various countries across the globe, including the U.S.
The press release further explained, “According to the World Health Organization (WHO), monkeypox is a virus originally transmitted to humans from animals, and then transmitted from one person to another by close contact with lesions, body fluids, respiratory droplets and contaminated materials such as bedding. As of July 7, 2022, over 6,000 cases of monkeypox have been reported to WHO from 59 countries.”
As the outbreak continues, the fact that tests are on their way, along with vaccines and treatments, is very welcome news.
Another Catalyst for CODX Stock
As you may recall, CODX stock traded hands for a little over $1 just prior to the coronavirus pandemic. Once reports indicated that the SARS-CoV-2 virus breached U.S. borders, Co-Diagnostics shares skyrocketed. At its peak, the market priced the security well into double-digit territory. Then, it suffered a catastrophic decline in the late summer of 2020. Although CODX temporarily bounced higher, it never truly recovered from the devastation.
As of this writing, CODX stock is trending around the $6.28 level. That is well below its peak market value but substantially higher from the beginning of 2020. Interestingly, over the trailing month, CODX is up approximately 25% — with underlying circumstances boding well for Co-Diagnostics.
On the date of publication, Josh Enomoto 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.
