No question about it — traders are taking notice of Virax Biolabs (NASDAQ:VRAX) today. That’s because VRAX stock is soaring 40% this morning after Virax revealed a rapid test kit specially designed to detect monkeypox. The company has already launched this test kit in Europe and other markets accepting the CE mark, according to the press release.
Virax Biolabs isn’t a huge company by any means. It’s a biotechnology business with a market capitalization of around $40 million. That figure could change soon, though, as traders bid up the share price quickly.
Monkeypox became a headline-grabbing issue earlier this year. In 2020, Covid-19 prompted significant demand for rapid test kits. Now, the same thing is happening with the monkeypox virus. As such, Virax’s Monkeypox Virus Antigen Rapid Test Kits could be a big boon for the company.
What’s Happening with VRAX Stock?
The response to this news has been immediate and powerful. VRAX stock gapped up this morning, from yesterday’s closing price of around $2.50 to more than $3.50 per share. We’re talking about a 45% move right at the opening bell. As of this writing, shares are now up closer to 40%.
This enthusiasm is understandable, as these test kits could be impactful and generate major revenues for Virax Biolabs. Apparently, the Monkeypox Virus Antigen Rapid Test Kits can be used in clinical settings as well as for screening purposes. Healthcare professionals can use them to identify monkeypox in a patient, typically within 15 minutes.
Additionally, the press release implies that these kits could be excellent screening tools. Specifically, they could serve as a “valuable initial screening test for individuals that have been exposed to monkeypox infected patients or a high-risk environment.”
CEO James Foster assures investors that Virax Biolabs is “working diligently to distribute the kits.” Clearly, VRAX shareholders are glad to hear that the company is making such big strides.
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On the date of publication, David Moadel did not hold (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.
